In his address to the nation, Prime Minister Narendra Modi on 10 May 2026, said: "don't buy gold for a year; postpone foreign travel; work from home where possible." His message was simple: Save dollars, protect India's foreign exchange reserves. This appeal came amid the ongoing Iran war, and the resultant rise in crude oil prices, and freefall of the Rupee. Again, on May 25, Finance minister Nirmala Sitharaman warned that West Asia conflict may hit Indian economy harder as fuel prices continue to surge ahead. It is now beyond doubt that the ongoing conflicts in West Asia have become one of the biggest international challenges affecting India’s foreign policy, economy, and security interests. India shares strong historical, cultural, economic, and political connections with countries such as Saudi Arabia, Iran, Israel, United Arab Emirates, and Qatar. The region is very important for India because it supplies a large share of India’s oil and natural gas needs. It is also home to millions of Indian workers whose remittances support many families and contribute to the Indian economy. Over the years, India has also built stronger strategic and economic ties with both Israel and the Gulf countries, which has changed the way India deals with the region diplomatically. However, ongoing conflicts such as the Israel-Palestine conflict, tensions between Iran, Israel and USA, wars in Yemen and Syria, and instability in important sea routes like the Red Sea and the Strait of Hormuz have created several challenges for India. These conflicts have led to higher oil prices, rising inflation, problems in trade and supply chains, security concerns for Indians living in the region, and threats to maritime trade routes. They have also made it difficult for India to balance its relations with different countries in the region that often oppose each other. This paper studies how the conflicts in West Asia affect India in many ways, including energy security, trade, the safety of the Indian diaspora, defense cooperation, and diplomatic relations. It also examines India’s “multi-alignment” policy, through which India tries to maintain good relations with different rival countries while protecting its own national interests. Finally, the paper suggests some policy measures that can help India reduce the risks caused by future conflicts in the region and strengthen its role and influence in West Asia.
Prakash et al. (Thu,) studied this question.