What Happened
- Prime Minister Narendra Modi addressed the Lok Sabha on the ongoing conflict in West Asia, which began on February 28, 2026, with US-Israel strikes on Iran and has since escalated significantly.
- Modi highlighted India's strategic petroleum reserves (SPR) of approximately 5.33 million metric tonnes (MT), stating India holds around 53 lakh MT in underground caverns at Visakhapatnam, Mangaluru, and Padur.
- He underscored the economic stakes of the conflict: the Strait of Hormuz — through which roughly 40% of India's crude oil imports transit — has faced disruption due to Iranian control.
- Modi stressed the welfare of the approximately 1 crore (10 million) strong Indian diaspora in the Gulf region, noting their safety and the continuity of remittance flows (worth over $50 billion annually) as central concerns.
- India's diplomatic stance was articulated as one of dialogue and diplomacy — calling for immediate de-escalation, ceasefire, and protection of civilian lives, while maintaining communication with leaders from Saudi Arabia, UAE, Qatar, Iran, and Israel.
Static Topic Bridges
India's Strategic Petroleum Reserves (SPR)
India's SPR programme was established under the Indian Strategic Petroleum Reserves Limited (ISPRL), a subsidiary of the Oil Industry Development Board. Three underground rock cavern facilities were built in Visakhapatnam (Andhra Pradesh, 1.33 MMT), Mangaluru (Karnataka, 1.5 MMT), and Padur (Karnataka, 2.5 MMT), giving a combined operational capacity of 5.33 million metric tonnes. The reserves are intended to provide emergency cover in the event of supply disruptions and were modelled on the US Strategic Petroleum Reserve and International Energy Agency (IEA) guidelines. As of early 2026, approximately 4.09 MMT was held in these caverns — about 77% of total capacity. Two additional facilities totalling 6.5 MMT are planned at Chandikhol (Odisha) and an expanded Padur site under a Public-Private Partnership model.
- India imports over 85% of its crude oil requirements, making SPR a critical energy security instrument.
- IEA recommends member countries maintain a minimum of 90 days of net oil import cover; India's current reserves offer approximately 9-12 days of cover — well below IEA norms.
- Phase 2 expansion at Chandikhol (4 MMT) and Padur (2.5 MMT) remains under development.
- The SPR is managed on a "free storage" model for public sector oil companies.
Connection to this news: PM Modi's reference to 53 lakh MT reserves in the Lok Sabha speech contextualised India's buffer capacity during the Hormuz crisis, while also implicitly signalling the need for the planned Phase 2 expansion.
Strait of Hormuz — A Critical Maritime Chokepoint
The Strait of Hormuz is a narrow waterway between Oman and Iran connecting the Persian Gulf to the Gulf of Oman and the Arabian Sea. It is the world's most important oil transit chokepoint: in 2024, approximately 20 million barrels per day (b/d) — about 20% of global petroleum liquids — passed through it. For India, approximately 40% of crude oil imports historically transited this strait; however, by early 2026, the Ministry of Petroleum and Natural Gas stated that India had secured nearly 70% of its crude imports from outside the Strait following active diversification. The strait's minimum navigable width is about 3.2 km (2 miles) in either direction.
- Iran controls the northern coastline of the strait, giving it significant leverage during conflicts.
- Key suppliers routing crude through Hormuz to India include Saudi Arabia, Iraq, and UAE.
- Alternative routes, such as the Abu Dhabi Crude Oil Pipeline (ADCOP) bypassing the strait, exist but have limited capacity.
- A full closure would affect China (the largest recipient), India (second largest at ~14.7% of Hormuz flows), South Korea, and Japan.
Connection to this news: The partial disruption of Hormuz transit following the February 28 conflict directly threatened India's energy supply chains, making PM Modi's Lok Sabha briefing a necessity and prompting high-level ministerial reviews.
India and the Gulf — Diaspora, Remittances, and Strategic Interests
India's relationship with the six-member Gulf Cooperation Council (GCC) — Saudi Arabia, UAE, Qatar, Kuwait, Bahrain, and Oman — is underpinned by three pillars: energy imports, a large diaspora, and bilateral trade worth over $160 billion annually. Approximately 1 crore (10 million) Indians live and work in Gulf countries, making it the single largest concentration of the Indian diaspora globally. Gulf-based Indians sent home approximately $51.4 billion in FY2025, representing nearly 38% of India's total remittance inflows, which reached a record $136 billion in FY2025.
- UAE ($26 billion), Saudi Arabia ($9 billion), and Qatar ($5.5 billion) are the top three Gulf remittance sources.
- Gulf countries collectively supply over 50% of India's crude oil imports.
- India-UAE trade crossed $85 billion in FY2025; India-Saudi Arabia trade exceeded $43 billion.
- A conflict threatening Indian workers' safety could trigger a humanitarian and economic crisis simultaneously.
Connection to this news: PM Modi's mention of the ~1 crore diaspora and disrupted trade routes reinforced that India's stake in the West Asia conflict is not merely diplomatic but deeply economic — encompassing energy supply, worker welfare, and remittance flows.
Key Facts & Data
- India's SPR capacity: 5.33 MMT across three locations (Visakhapatnam, Mangaluru, Padur)
- Current SPR fill level (February 2026): ~4.09 MMT (~77% capacity)
- Indian crude imports via Strait of Hormuz: historically ~40%; diversified to ~30% by early 2026
- Strait of Hormuz oil flow: ~20 million b/d globally (2024); India's share ~14.7% of total flows
- Indian diaspora in Gulf: ~1 crore (10 million) persons
- Gulf remittances to India: ~$51.4 billion (FY2025), ~38% of India's total remittances
- India's total remittance receipts: record $136 billion (FY2025)
- India-GCC bilateral trade: over $160 billion annually
- West Asia conflict onset: February 28, 2026 (US-Israel strikes on Iran)