CCS reviews West Asia situation, directs steps to assist stranded Indians
NEW DELHI: The Cabinet Committee on Security (CCS) has reviewed the evolving situation in West Asia and expressed concern over the safety and security of the large Indian expatriate community in the region.
The CCS also directed all concerned departments to take necessary and feasible measures to assist Indian nationals affected by the developments.
The CCS, which met late on Sunday evening under the chairmanship of Prime Minister Narendra Modi, also underscored the importance of an early cessation of hostilities and a return to dialogue and diplomacy.
According to an official statement, the CCS reviewed the evolving situation in West Asia, and the meeting was briefed on the air strikes in Iran on February 18 and the subsequent escalation, including attacks in several Gulf countries.
“It (CCS) expressed serious concern over the safety and security of the large Indian expatriate community in the region,” the statement said. The CCS also reviewed the difficulties faced by Indian travellers transiting the region and students appearing for scheduled examinations, as well as the broader implications for regional security and economic and commercial activities. “The CCS directed all concerned departments to take necessary and feasible measures to assist Indian nationals affected by the developments. It underscored the importance of an early cessation of hostilities and a return to dialogue and diplomacy,” the statement said. Defence Minister Rajnath Singh, Home Minister Amit Shah, External Affairs Minister S Jaishankar and Finance Minister Nirmala Sitharaman attended the meeting.
The CCS meeting was also attended by National Security Advisor Ajit Doval, Principal Secretaries to the Prime Minister P K Mishra and Shaktikanta Das, Chief of Defence Staff General Anil Chauhan, Cabinet Secretary T V Somanathan and Foreign Secretary Vikram Misri.
There are around 10,000 Indian citizens who live, study and work in Iran, while over 40,000 live in Israel. The number of Indians who live in the Gulf and West Asia is about 9 million.
Currently, the airspace of West Asia is almost closed.
With flight services disrupted due to the military escalation in West Asia, hundreds of Indians are stranded in Dubai, Doha and other key hub airports, with many of them taking to social media to appeal to the Indian government for assistance. India has in the past successfully evacuated thousands of Indians from different parts of the world, including West Asia, amidst conflicts. India has been focusing on outreach efforts, and Prime Minister Modi has been in touch with Israeli Prime Minister Netanyahu, conveying India’s concerns about the current situation and the need to de-escalate the tension, according to reports. By being in touch with leaders in the region and beyond, India has managed to maintain a balanced stance in the conflict, neither supporting any of the warring sides. The Ministry of External Affairs (MEA) said Indian missions across the region are in continuous contact with nationals, and helplines have been activated. Iranian Supreme Leader Khamenei was killed in a major attack on Iran launched by Israel and the United States. Iranian state television and the state-run IRNA news agency announced the 86-year-old’s death early Sunday. In a separate development, the MEA has stated that the government is closely monitoring the impact of the current situation on the economy, particularly on the energy front. In this context, the Minister of Petroleum and Natural Gas held a high-level meeting with senior ministry officials and leaders of public sector undertakings to review the supply of crude oil, LPG, and other petroleum products, and the initial indication is that the energy supplies to India are currently stable, although preparations are being put in place in the unlikely event of disruptions in supplies.
The increasing tensions in West Asia have placed the energy security of India firmly on the radar screen. Being a major global oil-importing nation, the fortunes of India are closely linked to the supplies emanating from the West Asian energy powers like Saudi Arabia, Iraq, the UAE, and Kuwait. A mere hiccup in the supplies or the routes that transport the precious commodity across the globe to meet the energy requirements of the global economy can soon impact the supplies to the Indian economy.
The Strait of Hormuz is at the centre of all the concerns. It carries 20 per cent of the global oil traffic, and a deterioration of the ties with Iran can soon impact the supplies passing through this waterway. Even without a blockade, the increasing costs of freight and insurance can soon impact the cost of landing the precious commodity. If the global oil prices rise, the impact would be felt in the Indian economy through various channels. The first would be the increase in the import bill, which would lead to an increase in the current account deficit. This would also lead to a depreciation of the rupee.
This would have an impact on the domestic economy in the form of higher rates of inflation. The government would then have the difficult task of deciding whether the fuel prices have to be hiked or if the situation has to be managed by adjusting the tax rates. The gas markets are not insulated from the impact of the rising global oil prices. The country depends on imported liquefied gas for fuelling the power plants, the manufacture of fertilisers, and the city gas networks. While India has been expanding its sources of crude oil and building up strategic oil reserves to navigate the current storm, it is an admitted fact that an escalation of the crisis in West Asia would put the Indian economy to the test. For an import-dependent economy, even the perception of geopolitical tensions in the region is unsettling and can create additional pressures on the exchequer and inflation.
