Page 6 - The Indian EYE 032726

EYE ON INDIA MARCH 27, 2026 | The Indian Eye 6

Caught in the Crossfire: How

the Iran War Is Straining India’s

Economy and Diaspora

From energy insecurity to human losses, the West Asia conflict is exposing India’s deep

vulnerabilities in an interconnected region

OUR BUREAU
Dubai / Doha/ New Delhi

s the conflict involving Iran
continues to destabilise West
AAsia, its ripple effects are being
felt acutely in India—a nation whose
economic stability, energy security,
and diaspora are tightly intertwined
with the Gulf. What initially appeared
to be a distant geopolitical crisis has
rapidly evolved into a multi-dimen-
sional challenge for New Delhi, af-
fecting everything from fuel supplies
to the safety of its citizens abroad. The Indian-flagged vessel ‘Jag Laadki’, carrying approximately 80,886 MT of UAE-sourced crude oil, berthed at Adani Port, Mundra,
The most immediate and human
cost of the conflict has been borne by on Wednesday (Adani Port/ANI Video Grab)
Indian nationals living and working in
the region. According to the Ministry of the situation. The need to reroute “From that area… a lot of fuel is sup- grappled with. Its reliance on import-
of External Affairs (MEA), six Indi- passengers through alternative air- plied to the world. So it is very import- ed energy, concentration of diaspora
ans have lost their lives in separate ports in Saudi Arabia illustrates how ant for us and for the world,” Jaiswal in conflict-prone regions, and depen-
incidents across Gulf countries, while quickly regional connectivity can col- added. Any escalation that threatens dence on specific maritime routes
one remains missing. Aseem R. Ma- lapse, stranding thousands and raising shipping lanes could disrupt supply collectively amplify its vulnerability
hajan, Additional Secretary (Gulf) at logistical and humanitarian challeng- chains, drive up oil prices, and exacer- to external shocks. While diversifica-
the MEA, confirmed that Indian mis- es for Indian authorities. bate inflationary pressures in India’s tion efforts are underway—such as
sions in Saudi Arabia, Oman, Iraq, Beyond the immediate human already sensitive energy market. increasing renewable energy capac-
and the United Arab Emirates are impact, the war has placed India’s en- The economic implications ex- ity and exploring alternative supply
coordinating with local authorities to ergy security under significant strain. tend beyond fuel. Higher oil prices can chains—the current situation demon-
trace the missing individual and repa- A substantial portion of India’s crude widen India’s trade deficit, weaken the strates that these transitions are far
triate the deceased. oil and gas imports flows through the rupee, and increase the cost of living from complete.
These casualties underscore a Strait of Hormuz, one of the world’s for millions. Industries dependent on In the final analysis, the war in-
deeper vulnerability: India’s vast di- most critical chokepoints. Any disrup- stable energy inputs—from manufac- volving Iran is not a distant geopolit-
aspora in the Gulf, estimated in the tion in this narrow waterway has glob- turing to transportation—face uncer- ical episode for India but a direct and
millions, is directly exposed to region- al consequences, but for India—one tainty, potentially slowing economic evolving crisis with tangible human,
al instability. The crisis has triggered a of the largest energy importers—the growth. In this sense, the Iran con- economic, and strategic consequenc-
large-scale movement of people, with stakes are particularly high. flict is not just a foreign policy chal- es. From the loss of lives and mass
around 300,000 passengers returning MEA spokesperson Randhir lenge but a domestic economic risk. evacuations to the looming threat
to India since late February. While Jaiswal emphasised this concern, reit- At the diplomatic level, India over energy supplies and trade routes,
Mahajan noted that “the situation erating India’s long-standing position has adopted a cautious and bal- the conflict has laid bare the intercon-
continues to improve with additional on ensuring “safe and free naviga- anced approach, reflecting its com- nectedness of India’s domestic stabili-
flights operating,” the reliance on spe- tion” through key maritime routes. plex relationships in the region. ty with developments in West Asia.
cial and non-scheduled flights reveals “Whether it is the Strait of Hormuz or Prime Minister Narendra Modi has As New Delhi continues to nav-
the fragility of normal travel networks any other water passage in the world, engaged with multiple global lead- igate this turbulent landscape, its im-
in times of conflict. it has been our side… that we are in ers, including those from France, mediate priorities remain clear: safe-
Airspace disruptions have further favour of safe and free navigation,” Jordan, and Malaysia, to push for guarding its citizens, ensuring energy
complicated mobility. While limited he said. His remarks reflect the cen- de-escalation. The emphasis, as ar- security, and advocating for de-esca-
flights continue from the UAE and trality of maritime security to India’s ticulated by the MEA, remains on lation. Yet, the broader lesson may lie
Oman, and partial reopening in Qa- economic interests. “dialogue and diplomacy” as the in the urgency of reducing structural
tar has allowed some commercial ac- The presence of 22 Indian ships only viable path to restoring stability. vulnerabilities—because in an in-
tivity, airspace closures in Kuwait and operating in the Persian Gulf further The crisis also exposes structur- creasingly volatile world, distant wars
Bahrain highlight the unpredictability highlights the country’s exposure. al dependencies that India has long are rarely distant for long.

www.TheIndianEYE.com