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Serious consequences on economy, says India as conflict escalates in West Asia

The Gulf region and wider West Asian region - which currently is engulfed in an ongoing crisis, constitute one of India's most vital trade corridors, serving as a gateway for energy imports, merchandise trade and maritime connectivity.

March 03, 2026 / 17:19 IST
Ministry of External Affairs.
Snapshot AI
  • India warns Gulf disruptions threaten economy and energy supplies
  • MEA urges early end to conflict, prioritizes citizens' safety
  • Emergency helplines issued for Indians in the Middle East

The Ministry of External Affairs on Tuesday unequivocally said any major disruption in the gulf, from which its trade and energy supply chains traverse, has serious consequences for the Indian economy.

The Gulf region and wider West Asian region - which currently is engulfed in an ongoing crisis, constitute one of India's most vital trade corridors, serving as a gateway for energy imports, merchandise trade and maritime connectivity.

The statement noted that not only has intensification of the conflict been witnessed but also its spread to other nations. “The destruction and deaths have mounted, even as normal life and economic activities come to a halt.

As a proximate neighbour with critical stakes in the security and stability of the region, these developments evoke great anxiety,” it said.

Reiterating “strongly” the call for dialogue and diplomacy, India said, “We raise our voice clearly in favour of an early end to the conflict. Already, many lives have been regrettably lost and we express our grief in that regard.”

"We had expressed our deep concern at the commencement of the conflict in Iran and the Gulf region on 28 February 2026. Even at that time, India had urged all sides to exercise restraint, avoid escalation and prioritise the safety of civilians. Unfortunately, in the holy month of Ramadan, the situation in the region has deteriorated significantly and continuously," MEA said in the release.

“There are almost one crore Indian citizens who live and work in the Gulf region. Their safety and well-being is of utmost priority. We cannot be impervious to any development that negatively affects them. Our trade and energy supply chains also traverse this geography. Any major disruption has serious consequences for the Indian economy. As a country whose nationals are prominent in the global workforce, India is also firmly opposed to attacks on merchant shipping. Already, some Indian nationals have lost their lives or are missing as a result of such attacks in the last few days,” India said in a statement.

Earlier today, the ministry announced: "In view of conflict situations in the Middle East, emergency helplines and contact details have been issued for Indian nationals who may require assistance. The resource has been shared for stranded Indians and includes contact numbers of the Ministry of External Affairs (MEA) and Indian embassies in the region."

Moneycontrol News
first published: Mar 3, 2026 05:19 pm

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