India and the Middle East economies are, in 2026, extremely interlinked. The fact that 13 per cent of the country’s exports go to the region is reason enough for any tremors in the Persian gulf hurting India. Moreover, the Trump-led action led to the closure of the Strait of Hormuz, through which 70–80 per cent of our LPG supplies flow.
It is to this delicate balance that the Israel-US–Iran war threw a wrench.
When Iran’s foreign minister, Abbas Araghchi, declared on Thursday that the country would permit passage through the Strait of Hormuz "for friendly nations including China, Russia, India, Iraq, and Pakistan", it was a win for the nation.
When global headwinds blow in India’s direction, we use the trade and remittances from the Middle East to balance things off. This time, however, the epicentre of the tornado is the same region. While India has come out on top with Iran on the Hormuz issue, as long as the conflict continues, the country needs to take more steps to secure its position.
Union Minister of External Affairs S Jaishankar is already in France for the G7 meeting of the foreign ministers. The Middle East crisis is the top talking point. It is expected that the body would take a coordinating call to figure out ways in which the Strait of Hormuz can remain open for international shipping.
What is more interesting is that India is not a member of the G7, which includes Canada, Germany, Italy, France, Japan, the US, and the UK. It was invited as a partner country by the current chair of the G7, France. Saudi Arabia, South Korea, and Brazil have also been extended the invite by France.
