'Serious consequences on economy': India as Iran-US war spreading to Middle East evokes 'great anxiety'

India on Tuesday expressed deep concern over the escalating conflict in West Asia, warning that any major disruption in the Gulf region would have serious consequences for the Indian economy. The statement came amid intensifying hostilities triggered by US-Israel strikes on Iran and subsequent retaliation, which have expanded across parts of the Middle East.

Emphasising its significant stakes in the region, India noted that nearly one crore Indian citizens live and work in the Gulf. Their safety and well-being, it said, remain of utmost priority. The government underlined that India cannot remain unaffected by developments that endanger its nationals, particularly at a time when attacks on merchant shipping have already led to casualties and missing Indian citizens in recent days.

The Gulf and the wider West Asian region serve as a vital corridor for India’s energy imports, merchandise trade and maritime connectivity. Any prolonged instability, the statement cautioned, could severely disrupt trade and energy supply chains that pass through this geography, thereby impacting domestic economic stability.

India reiterated that it had urged restraint and de-escalation when the conflict first began and expressed regret over the mounting civilian casualties and destruction. As a proximate neighbour with critical strategic interests, the developments have caused “great anxiety,” it said, calling strongly for dialogue and diplomacy to end the hostilities at the earliest.

Indian embassies and consulates in affected countries are in close contact with nationals and community organisations, issuing regular advisories and extending assistance to those stranded. The government said it remains in touch with regional governments and key partners, and will continue to closely monitor the evolving situation while taking decisions in the national interest.