Recent Current Affairs related to West Asia

The Department of Commerce (DOC) under the Ministry of Commerce and Industry (MoC&I) has extended the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme until December 31, 2026.

The Ministry of Textiles (MoT) has also extended the Rebate of State and Central Taxes and Levies (RoSCTL) scheme until December 31, 2026. These extensions are intended to mitigate the impact of geopolitical disruptions in West Asia.

L&T Energy Hydrocarbon Onshore (LTEH Onshore) has secured a contract worth over ₹15,000 crore from a company based in West Asia for a gas compression facilities project. The project was bagged against a letter of award issued for the FY26.

According to a report by India Ratings and Research (Ind-Ra), the real Gross Domestic Product (GDP) growth forecast of India for FY27 is upgraded to 6.8%, from the 6.7% estimated in May 2026.

The Wholesale Price Index (WPI) inflation is projected at 8.5% in FY27 from 0.4% in FY26. The Consumer Price Index (CPI) inflation is estimated to average 4.9% in FY27, with retail inflation expected to peak at 5.9% in Q3FY27 before moderating to 5% in Q4FY27.

Pakistan, Saudi Arabia, and Turkiye have signed a mutual defence pact named the ‘Mecca Joint Defence Agreement’.

Under the foundational principle of the agreement, an armed attack against any one of the 3 signatory states will be treated as an attack against all three.

Vishwesh Negi has been appointed as the next Ambassador of India to Iran.

According to a report by ICRA Ltd, India's real GDP growth for the first quarter (Q1) of FY27 is projected at 6.4-6.6%.

The Government of India has revised the Special Additional Excise Duty (SAED) on the export of diesel, Aviation Turbine Fuel (ATF), and petrol, effective from 16 July 2026.

The SAED on diesel exports has been increased to ₹15.5 per litre from ₹8.5 per litre, and on ATF exports to ₹14.5 per litre from ₹7.5 per litre. Meanwhile, the export duty on petrol has been reduced to ₹2.5 per litre from ₹4 per litre.

Union Minister Sarbananda Sonowal has launched the 'Seafarer-First' initiative to safeguard Indian seafarers operating in the Persian Gulf, Strait of Hormuz, and the Gulf of Oman.

The initiative is a response to the escalating maritime security concerns in West Asia. It will be implemented through the coordination of the Ministry of External Affairs, the Indian Navy, and the Directorate General of Shipping (DGS).

According to a report by the Asian Development Bank (ADB), India's GDP growth forecast for FY27 has been revised to 6.6% from the earlier 6.9%. The growth projection for FY28 is maintained at 7.3%.

The ADB has also raised the inflation forecast for FY27 to 5.2% from 4.5%, while the projection for FY28 is maintained at 4%.

US President Donald Trump and Iranian President Masoud Pezeshkian have signed a 14-point MoU aimed at ending the conflict between the two nations. The interim agreement was finalised electronically during the G7 summit in France.

The agreement mandates an immediate ceasefire, the reopening of the Strait of Hormuz, and a 60-day negotiation period for a comprehensive peace settlement. The US and its regional partners have also committed to a $300 billion reconstruction fund to support the economic development of Iran.

Ali Falih Kadhim al-Zaidi has been sworn in as the Prime Minister (PM) of Iraq and the Commander-in-Chief of the Armed Forces of the country. Nominated by the Coordination Framework, he is the youngest PM in the modern history of Iraq at the age of 40. He succeeds Mohammed Shia al-Sudani.

The Union Cabinet has approved the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 with an outlay of ₹18,100 crore to assist Micro, Small and Medium Enterprises (MSMEs) in mitigating short-term liquidity stress arising from the crisis in West Asia. The scheme provides 100% credit guarantee coverage for MSMEs and 90% for non-MSMEs and the airline sector. Eligible borrowers include MSMEs and non-MSMEs with existing working capital limits and scheduled passenger airlines with outstanding credit facilities as of March 2026, provided their accounts are classified as standard.

The USA has launched ‘Project Freedom’, a naval escort operation to guide stranded commercial vessels through the Strait of Hormuz. The operation was initiated under President Donald Trump in response to the growing tensions between Iran and the USA. The primary objective of the project is to ensure secure maritime passage and protect global shipping routes from disruptions caused by regional conflicts and oil supply instability.

Dr Neena Malhotra, Secretary (South) of the Ministry of External Affairs (MEA), has chaired the Brazil, Russia, India, China, South Africa (BRICS) Deputy Foreign Ministers and Special Envoys for the Middle East and North Africa (BRICS MENA) meeting in New Delhi.

The deliberations focused on the post-conflict reconstruction in Syria, achieving a political settlement in Yemen, and promoting stability and development in Iraq. The representatives also discussed the progress of the political process in Libya and the humanitarian crisis in Sudan. It is to be noted that the participating members have agreed to meet again in 2027 under the chairship of China.

The Government of India (GoI) has expanded the scope of the “Resilience & Logistics Intervention for Export Facilitation” (RELIEF) scheme under the Export Promotion Mission (EPM) by including Egypt and Jordan as eligible destinations. The initiative aims to assist exporters of India in mitigating logistics disruptions and escalating costs resulting from the prevailing geopolitical situation in West Asia.

Nizar Mohammed Saeed Amedi, belonging to the Patriotic Union of Kurdistan (PUK), has been elected as the 9th President of Iraq. He succeeds Abdul Latif Rashid.