What’s at Stake for India in the Gulf
Summary
India has strong economic and human connections to the Gulf region, including trade, investment, and a large Indian population working there. Instability caused by Iran’s actions in the Gulf, such as missile attacks and disruptions to shipping routes like the Strait of Hormuz, directly affects India’s energy supply and economic interests.Key Facts
- Nearly 10 million Indian citizens live and work in Gulf states.
- The Gulf Cooperation Council (GCC) is India’s largest trading partner bloc, with trade over $178 billion in 2024-25.
- India exports pharmaceuticals, food, textiles, gems, and engineering goods to the Gulf.
- Gulf countries have invested more than $31 billion in India as of 2025.
- India signed economic partnership agreements with the UAE and Oman and is working on a broader Free Trade Agreement with GCC.
- About 30% of India’s crude oil imports pass through the Strait of Hormuz, a key waterway Iran has disrupted.
- Roughly 90% of India’s imported Liquefied Petroleum Gas (used for cooking) moves through the Hormuz corridor.
- India has diversified its crude oil sources, with 70% of imports now coming from outside the Hormuz area.
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