‘Serious Consequences On Our Economy’: India Voices Concern As US-Iran War Spreads To Middle East

New Delhi: The Indian government on Tuesday voiced its concern over the escalating conflict in Iran and the Gulf region following airstrikes launched by the US and Israel on Tehran on February 28, killing Supreme Leader Ayatollah Ali Khamenei.

The Ministry of External Affairs (MEA) said in a statement that any major disruption in the Gulf has serious consequences for the Indian economy.

“We had expressed our deep concern at the commencement of the conflict in Iran and the Gulf region on 28 February 2026. Even at that time, India had urged all sides to exercise restraint, avoid escalation and prioritise the safety of civilians. Unfortunately, in the holy month of Ramadan, the situation in the region has deteriorated significantly and continuously,” the government said.

“In recent days, we have not only witnessed an intensification of the conflict but also its spread to other nations. The destruction and deaths have mounted, even as normal life and economic activities come to a halt. As a proximate neighbour with critical stakes in the security and stability of the region, these developments evoke great anxiety,” the statement added.

Flagging the presence of “almost one crore Indian citizens” who live and work in the Gulf region, MEA said their safety and well-being is of utmost priority.

“We cannot be impervious to any development that negatively affects them. Our trade and energy supply chains also traverse this geography. Any major disruption has serious consequences for the Indian economy. As a country whose nationals are prominent in the global workforce, India is also firmly opposed to attacks on merchant shipping. Already, some Indian nationals have lost their lives or are missing as a result of such attacks in the last few days,” the government observed.

Reiterating “strongly” the call for dialogue and diplomacy, the government said it was clearly in favour of an early end to the conflict. “Already, many lives have been regrettably lost and we express our grief in that regard.”

The government assured that Indian Embassies and Consulates in the affected countries remain in close touch with Indian nationals and community organisations, and will continue to be proactive in addressing various consular aspects of this conflict.

“We are in touch with the Governments of this region as well as other key partners. Prime Minister (Narendra Modi) and External Affairs Minister (S Jaishankar) have held discussions with their counterparts. Government will continue to closely monitor the evolving situation and take relevant decisions in the national interest,” the statement concluded.