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Iraq: The Energy Provider

Iraq has consistently been one of India’s "Top 3 Crude Oil Suppliers," making it foundational to India’s energy security.

1. Energy & Economic Partnership


Energy & Economic Partnership

Energy & Economic Partnership
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  • Crude Supplier: Iraq consistently ranks as one of India's top 3 oil suppliers, providing 20-25% of India's crude imports. Bilateral trade reached US$ 33.36 Billion in FY 2023-24.
  • Refining & Downstream: Collaborative discussions on joint downstream petrochemical projects and refineries in both nations to add value to oil trade.
  • Trade Diversification: Encouraging Indian exports in pharmaceuticals, IT, and construction materials to assist Iraq in its post-conflict economic restructuring.

2. Humanitarian, Diaspora & Cultural Bonds


Humanitarian, Diaspora & Cultural Bonds

Humanitarian, Diaspora & Cultural Bonds
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  • Indian Diaspora: ~25,000+ Indians working in construction, services, and health sectors.
  • Evacuations (April 2026): The Indian MEA successfully facilitated the safe return of Indian seafarers and workers from the region during escalating West Asian regional maritime security tensions.
  • Medical & Religious Tourism: Over 100,000 Indian pilgrims visit holy shrines in Baghdad, Najaf, and Karbala annually. Medical tourism from Iraq to India for tertiary care remains a major avenue of soft-power engagement.

3. Stability & Political Engagements


Stability & Political Engagements

Stability & Political Engagements
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  • Diplomatic Milestones: In May 2026, PM Narendra Modi congratulated newly appointed Iraqi Prime Minister Ali Falih Kadhim al-Zaidi, reaffirming India's commitment to supporting a unified, democratic, and stable Iraq.
  • Institutional Dialogues: Regular meetings, including EAM S. Jaishankar's consultations with Iraqi Deputy PM and FM Fuad Hussein, guide cooperation on counter-terrorism and training programs.
  • Energy Anchor: Iraq’s role in keeping Indian fuel prices stable.
  • Tertiary Gateway: Indian hospitals as the primary destination for Iraqi patients.
  • Post-Conflict Reconstruction: India's "Soft-power" role in rebuilding Iraqi cities.

Conclusion


Conclusion

Conclusion
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  • Iraq is India’s "Critical Supplier." Success lies in moving from "Transactional Oil trade" to "Diversified Industrial Partnership" in pharma and tech.