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Inside India’s response to Middle East crisis: Evacuations and fuel price protection

The government is weighing measures to cushion the middle class if global crude prices surge and begin to push up domestic petrol and diesel rates, according to report.

March 04, 2026 / 13:18 IST
A number of European countries are rushing to evacuate their nationals stranded in the Middle East as the Israel-US war with Iran intensifies.
Snapshot AI
  • India prepares to protect citizens amid Iran-Israel conflict
  • Government plans to shield middle class from oil price spikes
  • West Asia diplomatic efforts ramped up for national interests

The Iran–Israel war entered its fifth day on Wednesday with both sides escalating military operations.

According to Indian Express, the Centre is preparing on three critical fronts: ensuring the safety of Indian citizens across West Asia to shield the middle class from potential spikes in oil prices and calibrating its diplomatic outreach in the region in line with national interests.

Senior government officials told IE that these priorities were discussed at a meeting of the Cabinet Committee on Security on Sunday, March 1. I

In the aftermath, key ministries — including Civil Aviation and Petroleum and Natural Gas — were tasked with contingency planning in case the conflict extends beyond initial expectations.

The Indian diaspora in West Asia is among the largest overseas Indian populations. More than nine million Indians reside across the Gulf Cooperation Council (GCC) countries alone, particularly in the United Arab Emirates and Saudi Arabia, making up one of India’s most significant expatriate communities abroad. There are also over 100,000 Indians in Israel and more than 10,000 in Iran, according to recent government estimates.

Prime Minister Narendra Modi has personally spoken with leaders of several countries in the region — including the UAE, Qatar, Kuwait, Bahrain, Oman, Saudi Arabia and Jordan — conveying India’s solidarity and thanking them for their continued care and support of the Indian community.

“Iran has agreed to this with many other countries requesting safety for their citizens who plan to fly back home,” a government insider told IE.

According to the IE report, there are no indications of Indians wanting to rush back. However, airlines are now slowly restoring services to countries in West Asia.

The second major concern is the possibility of oil prices remaining elevated for an extended period. The government is weighing measures to cushion the middle class if global crude prices surge and begin to push up domestic petrol and diesel rates.

“We are working on a mechanism to ensure that the middle class is not burdened,” a senior official told IE. “Apart from exploring alternative supply options from other countries, one proposal under consideration is asking domestic refiners to prioritise supplies to the local market over exports, if necessary.”

According to the IE report, The CCS is also learnt to have discussed its diplomatic stand on the Iran war. “This is more of a strategic and long-term issue. Over the last 12 years, this government has built strong relations with Israel as well as Islamic countries in West Asia… There has been a big shift in our diplomacy in the region,” one source told IE.

Moneycontrol News
first published: Mar 4, 2026 01:18 pm

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