Balancing between empathy and strategy: India’s calculated role in the Gaza conflict

Since October 10, 2025, when the four-party ceasefire (United States, Qatar, Egypt, Israel) came into effect, the situation in the Gaza Strip has remained extremely fragile. Despite the agreement, hostilities have not completely ceased; on October 28–29, Israeli forces launched heavy airstrikes that resulted in over 100 deaths, nearly half of them children. The humanitarian situation in Gaza is therefore tragic. Despite the international community’s efforts to provide medical aid and facilitate hostage exchanges, widespread destruction and uncertainty continue to define the lives of its inhabitants. Israel claimed the attacks were a response to Hamas’ violation of the ceasefire—an allegation the group denies. Meanwhile, in the West Bank, restrictions and checkpoints have intensified, further worsening daily life for Palestinians, writes Dimitra Staikou.

The first aspect to be examined is the stance of the United States toward the opposing forces of Israel and Palestine in the conflict. Washington maintains strong ties with Israel, largely due to deep economic connections between the two countries. At the same time, it provides humanitarian assistance to Palestine, recognizing the scale of the crisis and the growing public pressure reflected in international media coverage. Hence, the U.S. promotes ceasefire efforts partly to contain international outrage. Beneath the humanitarian rhetoric, however, lie the U.S.’s economic interests in a post-war Israel: regional stability could benefit American markets, as arms, technology, energy, and construction companies would gain new export opportunities. Moreover, renewed confidence in the region could stimulate investments in infrastructure and trade, ultimately advancing profitable U.S. business interests.

Next, the article examines how Middle Eastern countries are affected by the end of the war. Energy prices in the region are highly sensitive to instability, as oil-exporting nations—Saudi Arabia, the UAE, and Kuwait—watch nervously for disruptions that could shake global oil and gas markets. Egypt and Qatar have gained geopolitical credibility by positioning themselves as mediators, while Iran has sought to expand its influence through its support of Hamas and other Shiite groups. The countries that lose most are those economically or strategically tied to Palestine and Gaza—Jordan, facing refugee pressure and social unrest, and Lebanon, where escalating tensions threaten domestic stability and economic recovery.

The Gaza–Palestine crisis has also weakened several Muslim states actively involved in the conflict, notably Turkey and Pakistan, both geopolitically and domestically. Turkey has openly supported Hamas and other Palestinian groups in Gaza, seeking to portray itself as protector of the Palestinians and leader of the Sunni world. Yet, it faces international criticism and economic risks from potential sanctions or trade restrictions. Pakistan, too, has expressed support for Hamas and Palestinian factions, but this alignment carries diplomatic and economic costs that limit its strategic room for maneuver.

Naturally, the consequences of the Gaza war extend far beyond the Middle East and affect East Asia as well. China, heavily dependent on oil and gas imports from the region, is particularly vulnerable to energy price spikes and supply chain disruptions. Instability increases production costs and hampers exports. Moreover, Chinese companies operating in Israel or Arab markets now face higher investment risks, logistical insecurity, and port delays. The uncertainty also ripples through international financial markets, weakening Chinese stocks, the yuan, and investor confidence—posing an additional challenge to China’s economic stability.

India, by contrast, has maintained a carefully balanced and diplomatically neutral stance in both the Gaza–Palestine and Russia–Ukraine wars, showcasing its ability to act as a reliable mediator in complex international crises. While supporting humanitarian aid and advocating political solutions, New Delhi avoids taking sides. Palestine has received from India an initial contribution of US$2.5 millionto theUNRWA (United Nations Relief and Works Agency for Palestine Refugees in the Near East) for the fiscal year 2024–25, as part of India’s annual commitment of US$5 million. Furthermore, on October 22, 2023, India airlifted approximately 6.5 tons of medical supplies and 32 tons of disaster relief materialto Gaza, routed via Egypt’s Al-Arish airport for delivery to the Strip.

In many respects, India stands to gain more from the Gaza–Palestine conflict than other QUAD members, as it combines strategic neutrality with active economic and technological engagement in the region. Unlike the U.S., Japan, and Australia—whose trade or energy exposure to the conflict zone is limited—India is uniquely positioned to take part in post-war reconstruction, infrastructure development, and energy ventures. Leveraging its expertise in construction, logistics, and technology, India can quickly move into projects that rebuild connectivity and foster long-term economic relations. Its geographic proximity and flexible economic posture also allow it to negotiate preferential trade and energy agreements more effectively than its QUAD partners.

Economically, India benefits through trade diversification and energy strategy. As Middle Eastern instability grows, India can expand its oil imports from alternative suppliers and secure better terms, reducing energy costs and stabilizing industrial output. Simultaneously, the demand for reconstruction and trade infrastructure creates openings for Indian firms in construction, technology, and services to export their products and expertise—boosting growth and expanding India’s global economic footprint.

Militarily, India gains from the region’s heightened demand for defense and security equipment. Middle Eastern nations, concerned about infrastructure protection and stability, are turning to reliable suppliers of weapons and security technologies. This trend presents Indian defense companies with opportunities to increase exports, strengthening both India’s economy and its strategic influence across a geopolitically critical region.

Technologically, India benefits by providing digital and infrastructure solutions to conflict-affected nations. The growing demand for secure communications, surveillance systems, logistics management, and trade facilitation platforms creates export and collaboration opportunities for Indian tech companies. Moreover, this experience enables India to innovate in crisis management and security systems, further enhancing its technological reputation and global standing.

Ultimately, India leverages its strategic neutrality and diplomatic maturity to turn crises into opportunities. As Rahm Emanuel once said: “You never let a serious crisis go to waste—it’s an opportunity to do things you thought you couldn’t do before.”
In conclusion, India’s exemplary conduct during the Gaza–Palestine war—balancing humanitarian assistance with pragmatic strategic positioning—demonstrates how a middle power can transform crisis into global advantage.

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