Is India Following the U.S. in Its West Asia Policy?

As the Israel-U.S.–Iran conflict escalates, India's muted stance raises critical concerns on strategic autonomy and energy security.
S
Surya
5 mins read
India walks diplomatic tightrope in West Asia war

Introduction

West Asia has once again emerged as a major geopolitical flashpoint with direct confrontation involving Israel, Iran and the United States. For India, the crisis is not a distant geopolitical event but a direct strategic concern. The region supplies the majority of India’s energy needs, hosts millions of Indian workers, and serves as a vital hub for trade and connectivity initiatives.

More than 10 million Indians live and work in West Asia, while a large share of India’s crude oil and gas imports originate from the region. Therefore, instability in West Asia immediately affects India’s energy security, economic stability and diaspora safety.

As former Prime Minister Jawaharlal Nehru emphasised in India’s foreign policy doctrine:

“Our policy is one of non-alignment — not neutrality but independence of judgment.”

The current conflict raises a key question: Is India maintaining strategic autonomy or gradually aligning with major powers in its West Asia policy?


Strategic Importance of West Asia for India

West Asia remains one of the most important regions for India’s external relations.

Strategic DimensionImportance for India
Energy securityMajor source of crude oil and LPG
DiasporaOver 10 million Indians living in Gulf countries
TradeKey export and remittance markets
ConnectivityGateway to Central Asia and Europe
Maritime routesVital shipping lanes in Indian Ocean and Persian Gulf

Instability in the region therefore has multi-dimensional implications for India’s national interests.


Impact of the Conflict on India

1. Energy Security

India imports a large share of its energy from West Asia. Any disruption in supply chains can lead to higher domestic fuel prices.

IndicatorData
Share of crude oil imports from West Asia~60–65%
India’s LNG imports from QatarSignificant share
Strategic vulnerabilityStrait of Hormuz shipping route

Nearly one-fifth of global oil supply passes through the Strait of Hormuz, making the region critical to global energy stability.

Rising oil prices can lead to:

  • inflationary pressures
  • higher import bills
  • increased fiscal burden

2. Economic Implications

Energy price shocks directly affect India’s economy.

Economic IndicatorImpact of Oil Price Increase
InflationFuel costs increase transport and production costs
Current account deficitHigher oil import bill
Fiscal deficitGreater subsidy expenditure
Rupee valueCurrency depreciation due to higher imports

For example, a $10 increase in crude oil prices can significantly raise India’s import bill, affecting macroeconomic stability.


3. Safety of Indian Diaspora

India’s diaspora presence in West Asia is among the largest in the world.

RegionEstimated Indian Population
UAE~3.5 million
Saudi Arabia~2.6 million
Kuwait~1 million
Qatar~0.7 million

Conflict escalation could threaten:

  • worker safety
  • remittance flows
  • evacuation challenges

Remittances from the Gulf form a major component of India’s foreign exchange inflows.


India’s Diplomatic Approach

India has traditionally followed a balanced diplomacy in West Asia, maintaining relations with all regional actors.

CountryNature of Relationship
IsraelDefence and technology cooperation
IranEnergy, connectivity and regional strategy
Gulf countriesTrade, energy and diaspora ties

India’s approach has historically been guided by strategic autonomy, avoiding alignment with competing blocs.


India–Israel Strategic Partnership

India and Israel share strong defence and technology cooperation.

SectorCooperation
DefenceMissiles, surveillance systems
AgricultureWater management and irrigation
TechnologyCybersecurity and innovation

Israel is among India’s top defence suppliers, which strengthens strategic cooperation.


India–Iran Strategic Importance

Despite reduced trade in recent years, Iran remains strategically significant for India.

Strategic AreaImportance
Chabahar PortAccess to Afghanistan and Central Asia
ConnectivityInternational North-South Transport Corridor
Regional diplomacyBalance in West Asia

Iran provides India with an alternative connectivity route bypassing Pakistan.


Gulf Countries and Neutral Security Posture

Most Gulf countries have adopted a defensive posture during the conflict.

CountryCurrent Approach
Saudi ArabiaDefensive interception of missiles
UAEAvoiding direct involvement
QatarDiplomatic balancing

They aim to protect their territories without entering the war directly, as direct participation could escalate regional tensions.


Impact on Connectivity Projects

The conflict also affects large strategic infrastructure initiatives.

India–Middle East–Europe Economic Corridor (IMEC)

IMEC was announced as a major connectivity initiative linking India with Europe through West Asia.

ComponentObjective
India–Gulf corridorMaritime connectivity
Gulf–Europe rail linkTrade facilitation
Digital and energy infrastructureIntegrated supply chains

However, regional instability has stalled progress on the project.


Comparison: India’s Traditional Policy vs Current Signals

DimensionTraditional ApproachRecent Perception
Diplomatic stanceStrategic balancePerceived tilt towards Israel
Crisis diplomacyActive mediationLimited intervention
Regional engagementMulti-vector diplomacyBilateral engagements

This raises debates about whether India is maintaining neutrality or signalling alignment.


Challenges for India

India faces multiple strategic dilemmas in the current conflict.

ChallengeExplanation
Balancing partnershipsIsrael vs Iran relations
Protecting energy supplyOil and gas imports
Ensuring diaspora safetyEvacuation preparedness
Preserving strategic autonomyAvoiding great power alignment

The complexity of West Asia politics makes diplomatic balancing particularly difficult.


Future Outlook

The trajectory of the conflict remains uncertain. Without clear war objectives and with multiple actors involved, the situation could remain volatile.

Diplomatic engagement from regional powers such as Türkiye, Saudi Arabia, Qatar and the UAE may help facilitate negotiations.

There is also a growing view that middle powers like India, China and ASEAN countries could play a constructive role in encouraging dialogue.


Way Forward for India

India’s long-term interests lie in promoting stability and maintaining balanced diplomacy. A pragmatic approach should focus on protecting energy supply chains, ensuring the safety of Indian citizens abroad, maintaining engagement with all regional actors, and supporting diplomatic initiatives aimed at de-escalation.

Strategic autonomy remains the guiding principle of India’s foreign policy.

As Henry Kissinger observed:

“A nation’s foreign policy must be based on its national interests, not sentiment.”


Conclusion

The West Asia conflict presents a complex strategic challenge for India. The country must carefully balance its partnerships with Israel, Iran and Gulf states while safeguarding its energy security, economic stability and diaspora interests.

In an increasingly volatile geopolitical environment, India’s credibility will depend on its ability to maintain strategic autonomy while actively contributing to regional stability and dialogue.

Quick Q&A

Everything you need to know

West Asia (Middle East) occupies a central place in India’s foreign policy due to its importance for energy security, diaspora welfare, trade, and strategic connectivity. The region supplies a large share of India’s crude oil and natural gas imports, making it vital for sustaining the country’s economic growth. Additionally, the region hosts nearly 10 million Indian expatriates, whose remittances form an important component of India’s foreign exchange earnings.

India also maintains deep economic and strategic partnerships with several countries in the region, including Israel, Iran, Saudi Arabia, the UAE, and Qatar. Israel is a key defense technology partner for India, providing advanced surveillance systems, drones, and missile technologies. Meanwhile, Iran is strategically important due to projects such as the Chabahar Port, which allows India access to Afghanistan and Central Asia while bypassing Pakistan.

Key strategic interests for India in West Asia include:

  • Energy security: Ensuring stable supplies of oil and gas.
  • Diaspora protection: Safeguarding the welfare of millions of Indian workers.
  • Trade and investment: Strengthening economic ties with Gulf economies.
  • Connectivity projects: Initiatives such as the India-Middle East-Europe Economic Corridor (IMEC).

Therefore, instability in West Asia—such as the ongoing conflict involving Israel, the United States, and Iran—poses significant risks to India’s economic stability and diplomatic interests. Maintaining balanced relations with all major actors in the region has historically been a cornerstone of India’s foreign policy.

India’s response to the ongoing Israel–U.S.–Iran conflict has generated debate because observers believe it appears more cautious and less balanced than India’s traditional policy of strategic autonomy. Historically, India has tried to maintain good relations with multiple actors in West Asia, including Israel, Iran, and Arab countries. This approach allowed India to protect its energy interests, maintain diplomatic flexibility, and avoid being drawn into regional rivalries.

However, recent developments—such as Prime Minister Narendra Modi’s visit to Israel shortly before the escalation of hostilities and India’s muted response to the killing of Iran’s Supreme Leader Ayatollah Ali Khamenei—have led some analysts to argue that India may be appearing closer to the U.S.–Israel strategic axis. Critics believe this could weaken India’s ability to maintain neutrality and mediate in regional conflicts.

The debate revolves around several strategic concerns:

  • Balancing partnerships: India must maintain ties with both Israel and Iran.
  • Energy security: Iran and Gulf countries remain important energy suppliers.
  • Diplomatic credibility: Neutrality enhances India’s ability to act as a mediator.
  • Strategic autonomy: Avoiding excessive alignment with major powers.

If India is perceived as taking sides, it may complicate relations with countries such as Iran and some Gulf states. Consequently, many analysts argue that maintaining strategic ambiguity—a policy of not clearly siding with any one party—could better protect India’s long-term geopolitical interests.

The conflict in West Asia directly affects India’s energy supply chains, economic stability, and the safety of its diaspora. The region is one of the world’s largest producers of oil and natural gas, and disruptions caused by war can lead to sharp increases in global energy prices. Since India imports more than 80% of its crude oil requirements, any escalation in the region can significantly increase the country’s energy import bill and contribute to domestic inflation.

Another critical concern is the welfare of Indian nationals living and working in West Asia. Approximately 10 million Indians reside in the Gulf region, many of whom are employed in construction, services, and domestic work. In times of conflict, their safety becomes a major concern for the Indian government, which may need to undertake large-scale evacuation operations similar to past missions such as Operation Raahat (2015) in Yemen.

The broader implications for India include:

  • Rising energy prices affecting inflation and economic growth.
  • Threats to Indian diaspora living in conflict-prone regions.
  • Disruptions to maritime trade routes in the Persian Gulf.
  • Delays in connectivity projects such as IMEC.

Therefore, stability in West Asia is essential not only for India’s energy security but also for protecting its economic interests and the livelihoods of millions of Indian citizens abroad.

India’s foreign policy in West Asia has historically been guided by the principle of multi-alignment, which involves maintaining productive relations with multiple regional powers simultaneously. Israel is an important partner for India in areas such as defense technology, intelligence sharing, and agriculture. The United States, meanwhile, is India’s largest strategic partner in terms of defense cooperation, trade, and geopolitical coordination in the Indo-Pacific region.

At the same time, Iran remains a strategically significant partner. Beyond oil imports, Iran plays a crucial role in India’s connectivity strategy through the Chabahar Port, which provides access to Afghanistan and Central Asia while bypassing Pakistan. Iran also holds geopolitical importance in relation to developments in Afghanistan and regional security dynamics.

Balancing these relationships involves several challenges:

  • Strategic partnerships with Israel and the U.S. in defense and security.
  • Geopolitical cooperation with Iran in connectivity and regional diplomacy.
  • Maintaining credibility among Arab Gulf states.
  • Avoiding alignment that undermines strategic autonomy.

If India is perceived as leaning too strongly toward one side, it risks damaging relationships with other regional partners. Therefore, analysts often argue that India must adopt a carefully calibrated diplomatic strategy that preserves partnerships with all sides while advocating for peace and stability in the region.

The India-Middle East-Europe Economic Corridor (IMEC) was announced during the G20 Summit in 2023 as an ambitious connectivity project linking India to Europe through the Middle East via railways, ports, and energy infrastructure. The corridor was envisioned as a strategic alternative to China’s Belt and Road Initiative (BRI) and aimed to strengthen trade links between Asia, the Middle East, and Europe.

However, the project has lost momentum due to rising geopolitical tensions in West Asia. The Hamas attack on Israel in October 2023 and the subsequent regional conflicts significantly disrupted political cooperation among participating countries. Infrastructure corridors require long-term stability and investor confidence, both of which have been undermined by the ongoing security challenges in the region.

Key factors behind the slowdown include:

  • Regional instability caused by conflicts in Gaza and broader West Asia.
  • Lack of investor confidence due to security uncertainties.
  • Political disagreements among regional stakeholders.
  • Absence of detailed implementation plans and financing frameworks.

As a result, IMEC currently remains largely a conceptual project discussed in policy and academic circles rather than a concrete infrastructure initiative. For it to progress, the region must experience greater political stability and renewed diplomatic engagement among participating countries.

If the conflict in West Asia escalates further, India would need to adopt a multi-dimensional policy response aimed at protecting its strategic interests while minimizing economic and humanitarian risks. The first priority would be ensuring the safety of Indian citizens in the region. The government may need to activate emergency evacuation mechanisms similar to past operations such as Operation Raahat in Yemen (2015) or Operation Ganga in Ukraine (2022).

Another critical dimension is energy security. Escalating conflict could disrupt oil and gas supplies or push prices significantly higher. India would need to diversify energy sources by increasing imports from alternative suppliers such as the United States, Russia, and African countries. At the same time, strengthening domestic renewable energy production would help reduce dependence on volatile external markets.

A comprehensive strategic response could include:

  • Diplomatic engagement: Advocating ceasefire and dialogue through international forums.
  • Energy diversification: Expanding long-term supply agreements with multiple producers.
  • Diaspora protection: Preparing evacuation plans and consular support systems.
  • Strategic neutrality: Maintaining balanced relations with all parties.

In addition, India could play a constructive diplomatic role by supporting multilateral initiatives for regional dialogue involving countries such as Türkiye, Saudi Arabia, and the UAE. Such an approach would reinforce India’s image as a responsible global power committed to peace and stability.

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