India's Strategic Interests in the Gulf Amid Regional Tensions

India's economic and strategic interests in the Gulf region are significantly impacted by Iran's recent actions, particularly its obstruction of commercial shipping through the Strait of Hormuz. This waterway is crucial for global energy supplies, and disruptions here pose direct threats to India's energy security and economic stability. Approximately 30% of India's crude oil imports transit through this chokepoint, alongside 90% of its liquefied petroleum gas (LPG) imports, which are vital for household cooking fuel. The ongoing tensions, exacerbated by the 2026 U.S.-Israeli strikes on Iranian facilities, have heightened the stakes for India, which relies heavily on stable energy flows from the Gulf.

NewsweekFrom ideology to Interests: India’s Gulf Policy Post 9/11

India's engagement with Gulf states has evolved from a primarily economic focus to a more strategic partnership, particularly with the United Arab Emirates (UAE) and Saudi Arabia (KSA). The relationship with the UAE has strengthened since Prime Minister Narendra Modi's visit in 2015, leading to significant investments and a Comprehensive Economic Partnership Agreement in 2022. Similarly, India has deepened its ties with KSA, aligning its interests with the Kingdom's Vision 2030 initiative. This shift reflects India's recognition of the Gulf's strategic importance amid rising regional tensions.

From ideology to Interests: India’s Gulf Policy Post 9/11Newsweek

India's partnerships in the Gulf are characterized by significant economic interdependence. The Gulf Cooperation Council (GCC) is India's largest trading partner bloc, with bilateral trade exceeding $178 billion in FY 2024-25. The Indian diaspora, numbering nearly 10 million, plays a crucial role in strengthening these ties across various sectors, including healthcare, finance, and technology. The strategic partnerships with the UAE and KSA are complemented by India's ongoing, albeit limited, engagement with Iran, primarily focused on the Chabahar Port project.

NewsweekFrom ideology to Interests: India’s Gulf Policy Post 9/11

While India has maintained a balanced approach, critics argue that its engagement with Iran remains constrained by the broader geopolitical landscape. The Iranian government's actions, including its support for proxy forces and missile capabilities, pose challenges to India's interests in the region. Some analysts suggest that India must adopt a more assertive stance against Iranian coercion to safeguard its economic and security interests.

From ideology to Interests: India’s Gulf Policy Post 9/11

India's foreign policy has traditionally emphasized non-alignment and strategic autonomy. In light of the recent escalations, Indian officials have recognized the incompatibility of Iranian chokepoint coercion with India's interests. The Indian government has expressed the need for a stable Gulf region free from Iranian threats, advocating for a diplomatic resolution that ensures the security of vital shipping lanes.

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The proposed India-Middle East-Europe Economic Corridor, which relies heavily on Gulf partnerships, underscores the importance of regional stability for India's long-term economic strategy. As India navigates its relationships with the UAE, KSA, and Iran, the outcome of the current tensions will shape the geopolitical landscape of the Gulf for years to come. India's proactive engagement in the region is essential for maintaining its economic interests and ensuring the security of its energy supply chains.

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• “Regardless of how one judges the military action itself, Iran's decision to weaponize a global energy chokepoint in response is a choice with real consequences for countries, like India, that had no part in that confrontation.” — Jason D. Greenblatt, Former White House Middle East Envoy

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• “India's stake in a Gulf free from Iranian attack is substantial and real.” — Jason D. Greenblatt

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• “A Middle East less shaped by destabilizing Iranian government behavior is one where India's economy grows stronger, its partnerships with the Gulf run deeper and millions of people in both India and the Gulf benefit directly from greater stability and opportunity.” — Jason D. Greenblatt

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• “The instability the Iranian government has helped fuel across the region does not stop at India's western neighborhood.” — Jason D. Greenblatt

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India's strategic positioning in the Gulf is critical, as the region's stability directly influences its economic future and energy security.

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