Before the Gulf war [I], India had strong economic ties with Iraq.
From 1987 onwards, more than a third of the projects awarded to Indian companies from overseas clients came from Iraq, which was also a big importer of goods and services and employed 180,000 desi expats as well.
About a quarter of India’s oil imports were sourced directly from Iraq or through a triangular rupee-rouble swap with the Soviet Union. None of these ties exist today.
India’s oil imports are widely diversified, Iraq’s importance as an export market is negligible, India’s reserves are about $69 billion today – compared to about $1 billion during the 1990 crisis, and very few Indians now work in Iraq.
So, our exposure to Iraq is minimal and a war won’t cause any major shocks to the economy.(It’s an oily war – The Economic Times)
But of course:
India stocks up oil, but price shock worries loom – The Economic Times