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The Science Story Behind Middle Eastern Oil

How ancient oceans, microscopic life, and deep geological time turned the Middle East into the world’s energy heartland — and why that matters in the era of the Iran–Israel crisis

Dipin Damodharan

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oil
Image credit: Zukiman Mohamad

How ancient oceans, microscopic life, and deep geological time turned the Middle East into the world’s energy heartland — and why that matters in the era of the Iran–Israel crisis

When geopolitical tensions flare in the Middle East (West Asia), global markets tremble. Oil prices surge, shipping routes become strategic flashpoints, and diplomats rush to prevent wider conflict. The recent escalation involving Iran and Israel has once again drawn attention to the region’s central role in the global energy system.

But the real story of Middle Eastern oil began long before modern politics, long before nation-states, even long before humans existed.

It began hundreds of millions of years ago — in a vast tropical ocean that once covered much of what is now desert.

The immense oil reserves beneath the Middle East are not simply a matter of luck. They are the result of a rare convergence of geological processes that unfolded over hundreds of millions of years. Scientists often describe it as a geological perfect storm: the right organisms, the right environment, the right rocks, and the right tectonic conditions.

Together, they created one of the richest hydrocarbon provinces on Earth.

When the Middle East Was an Ocean

Today the Arabian Peninsula is associated with scorching deserts and arid landscapes. But during several periods in Earth’s distant past — particularly between 300 million and 50 million years ago — much of the region lay beneath warm, shallow seas.

These seas were biologically rich environments filled with microscopic organisms such as plankton, algae, and marine bacteria. When these organisms died, their remains settled on the seafloor, forming thick layers of organic material.

Normally, dead organisms would decompose and disappear. But under certain conditions — particularly when oxygen levels are low — organic material can accumulate faster than it decays.

Over millions of years, these deposits were buried under layers of sediment such as sand, clay, and limestone. As burial continued, pressure and temperature gradually increased.

Under these conditions, the organic matter slowly transformed into hydrocarbons — the molecules that make up crude oil and natural gas.

This transformation process, known as thermal maturation, typically takes tens of millions of years.

By the time the process was complete, the remains of ancient microscopic life had become the petroleum that fuels modern economies.

The Birth of Source Rocks

In petroleum geology, the first critical ingredient for oil formation is what scientists call a source rock — a rock formation rich in organic material capable of generating hydrocarbons.

The Middle East contains some of the most productive source rocks ever discovered.

One famous example is the Jurassic-age source rock systems beneath the Persian Gulf, which produced enormous volumes of petroleum over geological time. Because these source rocks formed in stable marine environments rich in organic matter, they generated hydrocarbons in extraordinary quantities.

Once oil forms inside source rocks, it does not remain there permanently. Oil and gas molecules are lighter than water and tend to migrate upward through porous rock layers.

This migration leads to the next crucial stage in oil accumulation.

The Role of Reservoir Rocks

Oil cannot be extracted directly from source rocks in most cases. Instead, it migrates into reservoir rocks — porous formations that can store hydrocarbons.

Many Middle Eastern oil fields are located in carbonate reservoirs, particularly limestone and dolomite formations. These rocks are ideal storage spaces because they contain microscopic pores and fractures that allow fluids to accumulate and flow.

The Middle East’s geological history produced vast carbonate platforms — essentially enormous underwater limestone systems built by marine organisms such as corals and shell-forming creatures.

These formations eventually became some of the most productive oil reservoirs in the world.

In places like Saudi Arabia, reservoir rocks are so permeable that oil can flow relatively easily compared with many other parts of the world. This is one reason Middle Eastern oil is often cheaper to extract than petroleum from more complex geological settings.

nasa arab
A satellite view of the Arabian Peninsula. Image credit: SeaWiFS Project, NASA/Goddard Space Flight Center, and ORBIMAGE/Wikimedia Commons

Nature’s Underground Traps

Even if oil forms and migrates into reservoir rocks, it can still escape unless something traps it underground.

In petroleum geology, these traps are essential. Without them, hydrocarbons would eventually leak to the surface.

The Middle East possesses an abundance of these traps. One important mechanism involves evaporite deposits — thick layers of salt and gypsum that formed when ancient seas evaporated. These rocks act as nearly impermeable seals that prevent oil from escaping.

Another type of trap forms through tectonic folding, when geological forces bend rock layers into arches or domes. Oil migrating upward becomes trapped beneath these structures.

Over millions of years, enormous volumes of petroleum accumulated in such formations. The result: giant oil fields that contain billions of barrels of crude oil.

The World’s Largest Oil Fields

Because of this combination of favourable geological factors, the Middle East hosts several of the largest oil fields ever discovered.

Among them is the famous Ghawar Field, located in eastern Saudi Arabia. Discovered in 1948, it remains the largest conventional oil field on Earth.

Stretching over roughly 280 kilometers, Ghawar has produced tens of billions of barrels of oil since operations began.

Other massive fields exist across the region in countries such as Iraq, Kuwait, and United Arab Emirates.

Together, these reserves account for roughly half of the world’s proven oil resources.

Few other regions possess such geological abundance.

Why Oil Is Easier to Extract Here

Another reason the Middle East dominates global oil production lies in the quality and accessibility of its reservoirs.

In many parts of the world — such as shale basins in North America — extracting oil requires advanced techniques like hydraulic fracturing.

But in much of the Middle East, reservoirs are large, pressurized, and geologically simple. In some cases, early wells produced oil that flowed naturally to the surface due to underground pressure.

These favorable conditions have historically made Middle Eastern oil among the least expensive to produce globally.

This economic advantage has shaped global energy markets for decades.

The Geography of Energy

Geology alone does not explain the region’s strategic importance. Geography also plays a critical role.

Much of the oil produced in the Middle East must pass through narrow maritime routes before reaching global markets.

One of the most important of these is the Strait of Hormuz, a narrow waterway connecting the Persian Gulf to the Arabian Sea.

Roughly one-fifth of the world’s oil supply travels through this corridor.

Tankers carrying petroleum from Gulf states must navigate this passage before heading toward Asia, Europe, and North America.

Because of this, the strait is widely considered one of the most strategically sensitive shipping routes on Earth.

Any disruption there can send shockwaves through global energy markets.

Oil and Modern Geopolitics

The first major oil discovery in the Middle East occurred in 1908 in Iran, marking the beginning of a new era in global energy.

Over the following decades, vast reserves were discovered across the Arabian Peninsula.

These discoveries transformed desert economies into some of the wealthiest states in the world.

They also reshaped international politics.

Oil wealth funded massive infrastructure development, modern cities, and sovereign wealth funds. At the same time, competition over resources contributed to geopolitical rivalries, international alliances, and strategic military interests.

The Middle East gradually became the focal point of global energy security.

Today, developments in the region influence oil markets worldwide.

When tensions rise — as in the current standoff involving Iran and Israel — investors and governments immediately worry about disruptions to energy supply.

A Resource Formed in Deep Time

The story of Middle Eastern oil reminds us that modern geopolitics often rests on geological foundations laid long before human history.

The hydrocarbons that power today’s global economy were created from the remains of microscopic organisms that lived hundreds of millions of years ago.

Ancient seas nurtured these organisms. Sediments buried them. Pressure and heat transformed them into petroleum.

Then geological forces trapped the oil deep underground until modern technology uncovered it.

In this sense, the oil fields of the Middle East are time capsules from Earth’s deep past.

The Future Beyond Oil

Despite the region’s enormous reserves, the world is gradually moving toward alternative energy systems.

Renewable technologies such as solar, wind, and green hydrogen are expanding rapidly. Even many oil-producing countries in the Middle East are investing heavily in energy diversification.

Yet petroleum will likely remain an important part of the global energy mix for decades.

As long as that remains true, the geological legacy of ancient oceans beneath the Middle East will continue to influence global politics.

The tensions between Iran and Israel are shaped by many factors — ideology, security concerns, and regional rivalries. But beneath all these lies another reality: the region sits atop one of the most extraordinary geological endowments on Earth.

A resource formed in deep time continues to shape the present.

And perhaps, for some time yet, the future.

Dipin Damodharan is the Co-founder and Editor-in-Chief of EdPublica. A journalist and editor with over 15 years of experience leading and co-founding both print and digital media outlets, he has written extensively on education, politics, and culture. His work has appeared in global publications such as The Huffington Post, The Himalayan Times, DailyO, Education Insider, and others.

Society

What Is Civilisational Diplomacy? Understanding India’s Newest Foreign Policy Tool

What is civilisational diplomacy? Learn how India is using shared heritage, culture and history to strengthen strategic partnerships with countries like Indonesia.

Dipin Damodharan

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India and Indonesia strengthen ties through civilisational diplomacy
PM Modi and President Prabowo Subianto at the Prambanan Temple complex in Yogyakarta, Indonesia, during their joint visit to launch the temple's restoration project, July 2026.Image credit: PIB/India

India is increasingly using civilisational diplomacy to strengthen its foreign policy by drawing on shared history, religion, culture and heritage. From Buddhist diplomacy to temple restoration projects in Indonesia, this emerging strategy blends cultural ties with economic, security and geopolitical partnerships in an evolving Indo-Pacific landscape.

Every few years, a new phrase enters the vocabulary of Indian foreign policy. There was “non-alignment” during the Cold War, “Look East” in the 1990s, and “Act East” after 2014. Lately, another term has been showing up in official statements and think-tank papers: civilisational diplomacy.

It sounds abstract, maybe even a little grand. But strip away the jargon and the idea is fairly simple: instead of building relationships with other countries only around trade figures and security pacts, use the older, deeper connections — shared religion, language, epics, art, trade routes that go back centuries — as a foundation that makes the newer, harder cooperation easier to build.

So What Does The Term Civilisational Diplomacy Actually Mean?

Traditional diplomacy runs on interests: two governments decide they need each other for defence, energy, or market access, and they sign agreements accordingly. Soft power, a term coined by the American scholar Joseph Nye, is about a country’s culture, values and policies making it attractive to others — something like the global popularity of Indian Bollywood or Korean K-pop.

Civilisational diplomacy is a step further back in time. It leans on ties that predate the modern nation-state altogether — a shared epic, a common script, a religion that travelled along old trade routes — and treats that inheritance as a working asset in present-day foreign policy, not just a talking point for a state banquet speech.

India’s most visible version of this has been built around Buddhism. Relics of the Buddha have been sent on tour to Thailand, Mongolia, Sri Lanka and Vietnam, drawing crowds in the hundreds of thousands. India has helped restore Buddhist and Hindu heritage sites well beyond its own borders — Angkor Wat in Cambodia, historic pagodas in Myanmar, and temples in Sri Lanka. The idea driving all of it is the same: countries that share a civilisational thread with India are often easier to talk to about everything else, from trade corridors to maritime security.

The India–Indonesia Version, Up Close

The most recent, and probably most fully worked-out, example of this approach played out during Prime Minister Narendra Modi’s state visit to Indonesia in early July 2026 — the opening leg of a longer tour that also took him to Australia and New Zealand.

India and Indonesia don’t share a border, a colonial history, or even a dominant religion today. What they do share is older than either government: Sanskrit loanwords still used in the Indonesian language, an Indonesian national airline named Garuda after the mythical bird of Hindu tradition, and a national epic tradition that draws heavily on the Ramayana and Mahabharata, still performed as ballet and shadow puppetry across Java and Bali.

Indonesian President Prabowo Subianto conferred on Modi the country’s highest civilian honour, the Bintang Adipurna, during the visit. The two leaders then travelled together to Prambanan, a ninth-century Hindu temple complex near Yogyakarta and one of Southeast Asia’s largest surviving Hindu monuments, where they jointly launched a restoration project. Under the plan, India’s Archaeological Survey will work alongside Indonesian heritage authorities to repair the smaller shrines scattered around the main complex, many of which have sat in ruins for decades. The two countries also agreed to mark 2026–27 as the “Tagore–Dewantara Year” of cultural and educational exchange, named after the Indian and Indonesian literary figures Rabindranath Tagore and Ki Hajar Dewantara.

What makes this moment interesting isn’t the temple visit by itself — it’s what it was bundled with. In the same set of talks, India and Indonesia signed on to a BrahMos missile deal, a maritime security framework covering the Sabang port near the Strait of Malacca, a rare-earth minerals partnership, plans to link India’s UPI payment system with Indonesia’s QRIS, and an agreement to help Indonesia build its own electronic voting machines. The temple restoration and the missile deal were announced in the same breath, not treated as separate tracks of the relationship.

Civilisational diplomacy in India's foreign policy
India is increasingly combining cultural heritage with strategic partnerships. Civilisational diplomacy is reshaping relations with Indonesia and beyond. Image credit: PIB/India

That pairing is really the point of civilisational diplomacy as a strategy: cultural gestures aren’t a substitute for hard security and economic cooperation, they’re the trust-building layer underneath it. A restoration project or a relic exhibition costs relatively little and rarely generates controversy, but it puts a government’s name on something the host country’s public already feels warmly about — which can make it politically easier to sign the bigger, more consequential deals alongside it.

Why Now, And Why This Framing

There’s a specific historical wrinkle in the India–Indonesia case that gets mentioned often in Indian commentary: in 1965, during the India–Pakistan war, Indonesia’s government was seen as closer to Pakistan. Six decades on, Jakarta is buying Indian missiles and inviting an Indian business school to open a campus on its soil. Officials frame that shift as proof that patient, culture-first diplomacy pays off over the long run — though it’s worth noting that plenty of factors besides shared heritage were behind that reversal, including changed regional security calculations and decades of separate bilateral work that had nothing to do with temples or epics.

It’s also fair to say this approach isn’t unique to India. China has pursued something structurally similar, using Buddhism as a soft-power thread through Belt and Road-linked countries such as Nepal, Sri Lanka, Myanmar and Mongolia — a reminder that civilisational diplomacy is as much a competitive tool in the region as a warm, cultural one.

The Honest Caveat

Civilisational diplomacy photographs well — a prime minister at a thousand-year-old temple makes for a better headline than a memorandum on customs procedures. That’s exactly why it’s worth watching critically rather than taking entirely at face value. Shared heritage doesn’t automatically translate into aligned strategic interests, and cultural warmth between two governments can cool quickly if underlying disputes over trade, migration or security resurface. What can genuinely be said is narrower: it’s a real and increasingly deliberate instrument in India’s foreign policy toolkit, it appears to be working as intended in the Indonesia relationship at this particular moment, and it’s most useful as a companion to concrete agreements rather than a replacement for them.

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Climate

Super El Niño Can’t Explain Mumbai’s Deluge, But Climate Change Can

Climate change is intensifying Mumbai’s rainfall, making downpours shorter and more extreme. Experts explain why El Niño alone cannot explain the floods.

Dipin Damodharan

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Mumbai Climate change rainfall is intensifying Mumbai's rainfall, making downpours shorter and more extreme. Experts explain why El Niño alone cannot explain the floods.
In the first seven days of July alone, the Mumbai saw four separate spells of triple-digit rainfall. Image credit/Special arrangement via V Jadhav

Mumbai Climate Change Rainfall: Mumbai’s recent deluge reflects a changing monsoon shaped by climate change as much as El Niño. Experts say warming oceans and a hotter atmosphere are driving fewer rainy days but far more intense downpours, exposing the city’s ageing drainage systems and growing vulnerability to urban flooding.

For most of June, the story of India’s monsoon was one of delay and deficit. A strengthening El Niño in the Pacific was pushing the Southwest Monsoon back, and by the end of the month the country was staring at a 40 percent rainfall shortfall. Then, within days, the sky flipped. As the monsoon shifted into an active phase, Mumbai and the rest of India’s west coast were hit by rain so intense that the national deficit collapsed from 40 percent to 20 percent in less than a week, as of July 6.

The whiplash has revived a debate among climate scientists that goes beyond this one season: it is no longer only about how much rain a city gets, but how that rain arrives.

A new briefing from Climate Trends lays out the case that a warmer atmosphere and rapidly heating oceans are loading the air with more moisture than before, which means fewer rainy days overall but far more violent bursts when the rain does come. El Niño, in this reading, still controls the timing and broad strength of the monsoon — but climate change is increasingly writing its character, turning downpours shorter, sharper, and more likely to overwhelm drains built for a gentler era.

Mumbai Climate Change Rainfall Intensifies Monsoon Extremes

Mumbai’s own numbers make the point. In the first seven days of July alone, the city saw four separate spells of triple-digit rainfall. The Colaba observatory logged 791 mm between July 1 and 7 — more than its entire climatological average for the whole month of 768.5 mm. Santa Cruz recorded 879 mm in the same window, brushing up against its monthly normal of 919.9 mm.

Mahesh Palawat, Vice President of Meteorology and Climate Change at Skymet Weather, pointed to a pile-up of weather systems as the immediate trigger. “Monsoon is presently in an active phase, with several weather systems prevailing across the country,” he said, noting a depression over Odisha and a cyclonic circulation over Maharashtra keeping both arms of the monsoon active, while continuous moisture from the Arabian Sea kept regenerating cloud cover over the state.

Dr Raghu Murtugudde, Emeritus Professor at the University of Maryland and a retired professor at IIT-Bombay, went further, arguing that the two forces driving this monsoon can no longer be pulled apart. “El Niño just cannot be separated from global warming anymore,” he said, describing how both the Arabian Sea and the Bay of Bengal were firing at once, feeding moisture into the core monsoon zone that eventually rides the Western Ghats and dumps over Mumbai.

Rewriting the Monsoon’s Rulebook

Palawat said the shift is structural, not a one-off. Weather systems that form in the Bay of Bengal, he explained, have started tracking west instead of northwest, while the Arabian Sea’s record warming has added extra moisture to the mix, keeping clouds regenerating for days on end wherever a weather system parks itself.

Dr K J Ramesh, former Director General of the India Meteorological Department, framed it as a break from the monsoon India used to know. “We know that the character of the monsoon has changed forever due to global warming,” he said. “Rains will be in the form of short duration and high intensity, whether there is an El Niño or no El Niño.” He pointed to Rajasthan, Gujarat and West Madhya Pradesh, where Western Disturbances alone can no longer explain the volume of rain now falling — an added moisture feed from the Arabian Sea, he said, has changed the pattern across the region.

Research cited in the briefing backs this up on a larger scale: the Middle East has been warming almost twice as fast as the rest of the inhabited world, and that heating has been linked to nearly half — 46 percent — of the intensified rainfall over Northwest India and Pakistan between 1979 and 2022, by pushing moisture northward out of the Arabian Sea.

The Long-term Drift

Zoom out from any single storm and the trend holds. Comparing 1981–2000 with 2001–2024, average monsoon rainfall has climbed by nearly 15 percent in Mumbai and 23 percent in Pune, according to data from the Council on Energy, Environment and Water (CEEW).

mumbai

Looking ahead, a separate report — Indian Coastal Region: Climate Projections 2021–2040 — suggests suburban Mumbai and parts of coastal Maharashtra and Gujarat should expect almost an additional week of heavy rain during the Southwest Monsoon in the coming years, alongside a projected 18 percent rise in the region’s already-massive 1,749 mm monsoon baseline. The same projections point to rising temperatures across the board, including a 1.3°C increase in both summer wet-bulb and winter minimum temperatures.

When Rain meets a City That isn’t Ready

Climate change, though, is only half the story of why Mumbai floods. The briefing frames urban flooding as a climate-plus-exposure problem — extreme rainfall colliding with a city whose drains, floodplains and green cover haven’t kept pace.

Ramesh was blunt about what that means on the ground. “It is no longer a matter of warnings anymore as substantial warnings have been issued well in time. It is now a preparedness and response issue,” he said, calling for full desilting of drains ahead of every monsoon and blaming unchecked concretisation for leaving trees with no room for their roots to breathe.

Dr Vishwas Chitale, a Fellow at CEEW, described the immediate toll of the past week’s rain — an orange alert in Mumbai and a red alert in Pune, both signalling rainfall heavy enough to disrupt daily life. He pointed to early warning systems and structured flood-resilience plans, like the one CEEW helped develop with the Thane Municipal Corporation, as the kind of groundwork cities now need. “We need to come out with some practical solutions on the ground to be able to manage urban flooding better,” he said.

Aarti Khosla, Director of Climate Trends, put the challenge in starker terms: extreme rainfall is no longer a possibility to plan around but a near-certainty to plan for. “The question is no longer whether extreme rainfall events will occur, but whether our cities are prepared to withstand them,” she said, calling for climate-resilient drainage, nature-based flood defences and urban planning that treats risk as a starting assumption rather than an afterthought.

The briefing’s broader point is a simple one: urban flooding happens when saturated drainage meets any of several triggers — torrential rain, storm surge, sea-level rise, groundwater seepage, or simply a city with too little permeable ground left to absorb water. Global warming is intensifying the rainfall trigger, and dense, paved-over cities are amplifying what happens next.

As one line from the briefing puts it, cities designed for yesterday’s climate are struggling to cope with today’s extremes — and, if the projections hold, tomorrow’s will demand even more.

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Society

West Asia Crisis: Can Kerala’s Returning Gulf Migrants Find a Future in the Green Economy?

Kerala Gulf migrants face growing uncertainty as the West Asia crisis threatens livelihoods. Can green jobs, reskilling and climate investments provide a sustainable future?

Vaishnavi V S

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Kerala Gulf migrants and solar energy illustrate Kerala's challenge of transitioning from Gulf remittances to a green economy.
Photo illustration created by EdPublica using images by Lebele and ClickerHappy via Pexels.

Up to 12 million Indian livelihoods are at risk from the West Asia crisis — Kerala alone accounts for 1.5 to 2 million of them. In the state most built on Gulf money, the jobs coming next don’t match the jobs going away. India’s most literate state is testing whether reskilling, entrepreneurship support and a reimagined green economy can catch its returning workers before they fall through.

When Cinil, who grew up in the hill district of Idukki, boarded his flight home from the Gulf earlier this year, no one had handed him a termination letter. He read the signs instead. For years he had worked in automobile advertising, chasing campaigns for car dealerships across the region — steady, unglamorous work that had financed a life back in Kerala. Then the campaigns got smaller. Clients cut budgets. Contracts that used to renew themselves simply stopped renewing. As the West Asia crisis deepened around him, Cinil made a calculation that hundreds of thousands of Keralites are now quietly making too: better to leave on your own terms than wait to be pushed.

Kerala Gulf Migrants Face an Uncertain Future

For others, there was no such choice to make. “Around 300 to 350 people lost their jobs in a single company in the hospitality sector,” says Baheej, from Kozhikode, a coastal district in Kerala, who has worked in the Gulf for many years. “That means 300 to 350 families were pushed into uncertainty almost overnight.” As tourist arrivals and travel activity declined amid the ongoing crisis, hospitality workers were among the first to feel it. Businesses cut costs to survive, and layoffs followed.

Lijesh’s story, from Malappuram, is a quieter kind of uncertainty. A driver, he has been sent home by his employer on a month of forced leave. He hasn’t told his own family that the leave is compulsory — his two daughters, both still in school, don’t know. “There is a lot of uncertainty,” he tells EdPublica.

Even those still employed are living with a different kind of strain. Workers in oil and gas facilities, particularly refineries, worry that escalating tensions could put critical energy infrastructure at risk. For many, simply reporting to work has become a source of anxiety.

“The ongoing West Asia crisis has affected almost every industry to varying degrees. However, the sectors most significantly impacted in terms of employment and business continuity are Oil & Gas, Construction, Hospitality, Facility Management, Aviation, Logistics, Manufacturing, Shipping and related service industries. The greatest challenges are supply chain disruptions, rising energy costs, project delays and reduced business activity,” said Suresh Kumar Madhusudhanan, a Mumbai-based veteran of the global human resource industry and Managing Director of Seagull International, to EdPublica.

Yet the picture isn’t uniformly bleak — at least not yet, and not for everyone. Net remittances from the region to India rose to $16 billion this April, the second month of the conflict, up 70% over the same period last year, according to data presented by the Union Finance Ministry in its latest report. Cinil’s story and Baheej’s exist alongside that number, not despite it: money is still flowing home even as jobs disappear, a lag that officials and economists are watching closely for signs of how long it can hold.

What Happens to Kerala?

For more than five decades, migration to the Gulf has shaped Kerala’s economy. In districts such as Malappuram — Lijesh’s home district — Kozhikode, where Baheej is from, and Thrissur, remittances have financed homes, education, healthcare and small businesses, woven into the fabric of everyday life rather than sitting apart from it. Idukki, where Cinil is from, has historically sent far fewer workers to the Gulf than the state’s traditional migration belt along the coast — a sign that the crisis’s reach is not confined to the districts usually associated with it.

According to the Kerala Migration Survey (KMS) 2023, the state received ₹2.17 lakh crore in inward remittances that year, with 80.5% of its emigrants living in Gulf Cooperation Council (GCC) countries.

A new study by IPE Global, an international development consultancy, puts a number on the exposure this creates. The West Asia crisis could put 10 to 12 million livelihoods across India at risk, the report estimates. Kerala alone accounts for 1.5 to 2 million of them — behind Uttar Pradesh (3.5 to 4 million) and Bihar (2 to 2.5 million), but still among the states most exposed. (The report’s estimates are built from a triangulated synthesis of migration and remittance data from the Ministry of External Affairs and the RBI, cross-referenced with state-wise sectoral employment patterns, rather than new primary surveys — a methodology the authors say reflects genuine uncertainty in how the crisis will actually unfold.)

“The movement of migrants has always remained relatively steady. Every year, around 2.5 to 3 lakh Keralites migrate to GCC countries, while nearly 1.5 lakh return. We saw similar situations during the 1990 Gulf War, the 2008 global financial crisis, the return of workers from Saudi Arabia following labour reforms in 2013, and again during the COVID-19 pandemic. Our system is seasoned and proven to manage such situations,” said Ajith Kolassery, former CEO of Norka Roots, the Kerala government agency tasked with the welfare and rehabilitation of the state’s Non-Resident Keralites.

“Kerala’s heavy dependence on the Gulf makes it particularly vulnerable. A prolonged West Asia crisis could reduce overseas jobs, cut remittances and bring more expatriates back home, putting additional pressure on the state’s economy. Kerala must respond by diversifying overseas employment, strengthening skills, creating more jobs at home and promoting entrepreneurship,” Madhusudhanan said.

The Green Transition Offers Hope

The IPE Global report argues that the crisis presents an opening to accelerate India’s green transition — and that the money to do it largely already exists inside the government’s own scheme architecture. By converging existing programmes such as PM-KUSUM (India’s mega solar initiative that turns farmers from energy consumers into energy producers by subsidizing solar pumps and rural solar power plants), the National Green Hydrogen Mission, Production Linked Incentive (PLI) schemes and the Carbon Credit Trading Scheme, the report estimates India could unlock USD 42–53 billion (₹4–5 lakh crore) without new outlay.

If implemented effectively, the report projects these initiatives could generate 35 million green jobs by 2047 and contribute to a USD 15 trillion green economy by 2070, spread across agriculture, renewable energy and industry:

  • Agriculture: Reframing PM-KUSUM as a “Farmer-as-Energy-Producer” programme — letting farmers sell surplus solar power back to the grid — could create 15 lakh (1.5 million) jobs on its own, add 50,000 MW of agri-solar capacity, raise farmers’ annual incomes by ₹25,000 to ₹40,000, and cut roughly 70 million tonnes of CO2 equivalent a year. The agriculture sector as a whole is projected to generate 6 to 7 million jobs.
  • Energy: Hitting India’s 500 GW renewable energy target could generate 3.4 million jobs, while the National Green Hydrogen Mission — backed by up to ₹8 lakh crore in mobilised investment — could add another 1.5 to 2 million, for 5 to 8 million jobs sector-wide.
  • Industry: A proposed National Green Steel Mission, decarbonising India’s 140-million-tonne steel sector, could help preserve the country’s USD 8 billion steel export market from EU carbon border tariffs (CBAM) while avoiding 55 million tonnes of CO2e annually. Alongside a Green Transformation Mission for India’s 63 million MSMEs, the industrial sector’s job potential runs past 20 million.

Abinash Mohanty, Head of the Climate Change and Sustainability Practice at IPE Global and the study’s lead author, frames the numbers starkly: with 85% of India’s crude oil imported and 10 to 12 million livelihoods exposed to a single geopolitical shock, he says, “the fragility is real. But so is the opportunity.”

The scale is real too — but so is the catch. The jobs the report says are coming are not, for the most part, the jobs currently being lost.

The Jobs Being Lost Are Not the Jobs Being Created

The workers most vulnerable to the current crisis are largely construction workers, hospitality staff, drivers and domestic workers employed across the Gulf. The jobs driving India’s green transition require a very different skill set.

Solar installation, battery manufacturing, power systems, renewable supply chains and green hydrogen production demand technical qualifications that many returning Gulf migrants have never had the chance to acquire.

Green hydrogen illustrates the gap sharply. The report estimates the sector could create 1.5 to 2 million jobs, but these roles require expertise in electrochemistry, fuel cell technology and industrial-scale systems management. For someone who has spent years working in a hotel, on a construction site or in facility management, moving directly into these sectors is unlikely without substantial reskilling.

A Significant Geographic Mismatch

The mismatch isn’t just about skills — it’s about geography. Rajasthan has the potential to generate around 5 million green jobs by 2047 while facing only about 0.5 million livelihoods at risk from the West Asia crisis. Gujarat could generate 4.5 million green jobs against just 0.28 million at risk. Tamil Nadu’s exposure (roughly 1 to 1.2 million livelihoods at risk) is dwarfed by its green jobs potential of 3.5 million.

Kerala sits at the opposite end of that spread. Despite being among the states most exposed to the Gulf economy, its estimated green jobs potential is only around one million — roughly half its at-risk livelihoods.

The mismatch is rooted in geography and infrastructure. Rajasthan and Gujarat have abundant land, large renewable energy parks and heavy industrial investment. Kerala has limited land for utility-scale renewable projects and few openings for large-scale green manufacturing.

Kerala’s Gulf Paradox: When Prosperity Becomes a Liability

Abinash Mohanty, the study’s lead author, explained to EdPublica why Kerala stands apart from the other states examined in the report.

“There is a peculiar irony embedded in Kerala’s economic story,” he said. “For four decades, the desert sands of the Gulf have nourished the rice fields of Malabar, remittances flowing back to fund concrete houses, college fees, and gold jewellery, transforming the state’s social fabric in the process. Today, Kerala still draws nearly a fifth of India’s entire remittance pie, even as its Gulf-bound workforce has shrunk sharply over the past decade. It is a state living off the echo of a migration boom that has already peaked.”

“Herein lies the mismatch,” Mohanty continued. “The IPE Global study reveals that India’s green transition — its solar parks, hydrogen valleys, and battery gigafactories — is gravitating naturally towards Rajasthan’s deserts and Tamil Nadu’s coastlines, not Kerala’s backwaters. Kerala, like a seasoned sailor stranded as the tide recedes, finds itself with deep economic dependence but a comparatively shallow green jobs harbour to dock in.”

“The solution cannot be importing Rajasthan’s solar playbook wholesale,” he said. “Kerala must instead lean into what it already possesses: a highly literate, internationally exposed workforce. Its future lies not in manufacturing solar panels, but in becoming India’s hub for green services — climate fintech, renewable energy project management, marine and coastal resilience engineering, and the skilled re-export of its own returning diaspora as consultants to other Gulf-exposed states. Kerala’s comparative advantage was always human capital, not hectares of sunlight — and that, fortunately, travels well.”

A Different Transition for Kerala

For Kerala, the transition is unlikely to mirror Rajasthan’s or Gujarat’s. Instead, sectors such as the blue economy, sustainable fisheries, marine industries, eco-tourism and green services may offer opportunities better aligned with the state’s geography and workforce. Alongside these, returning migrants will need structured reskilling programmes that connect training directly to employment.

Jobs
Illustration by S James/EdPublica

Even some of the report’s own recommendations run into Kerala-specific limits. The report proposes expanding PM-KUSUM so farmers can earn by selling surplus solar power to the grid — but eligibility under Component A generally requires 3–4 acres of land, clear ownership records and proximity to an electricity substation, conditions that are far harder to meet in a state of small, fragmented landholdings.

Kolassery believes Kerala should focus first on helping returning migrants find immediate livelihoods before chasing long-term structural change. “NORKA Roots has already demonstrated that this can be done,” he said, pointing to the NORKA Department Project for Returned Emigrants (NDPREM), which offers a 15% capital subsidy, a 3% interest subsidy for the first four years of timely loan repayment, and bank loans ranging from ₹1 lakh to ₹30 lakh, alongside entrepreneurship training and technical guidance through the Centre for Management Development.

“Our immediate priority should be short-term absorption. Kerala may not have the industrial advantages of larger states, but it has a knowledge-based economy and a workforce with international exposure,” he said. Rather than viewing returning migrants as a burden, he argues, Kerala should channel their experience into entrepreneurship and niche industries while courting new investment. “The Middle East’s investment landscape has shattered due to security concerns. This is the right time for India, especially Kerala, to position itself as a safe destination for investment. If we provide the right support, we can convert this challenge into an opportunity,” he said.

What’s Actually Working — and What Isn’t Yet

“The recommendations presented in the report demonstrate that climate action is not merely an environmental obligation — it is a pathway to economic transformation, energy sovereignty, livelihood security and long-term prosperity,” said Ashwajit Singh, Founder and Managing Director of IPE Global.

That pathway isn’t purely theoretical in Kerala. NDPREM, the state’s existing returnee-support scheme, already provides a working template — a 15% capital subsidy, a 3% interest subsidy for the first four years of timely repayment, loans up to ₹30 lakh, and hands-on entrepreneurship training through the Centre for Management Development. It is, in effect, a smaller-scale version of what the IPE Global report says the country needs at national scale: existing institutional capacity, redirected rather than rebuilt from scratch. Kolassery points to it as proof that Kerala doesn’t need to wait for green jobs to materialise before it starts absorbing returning workers — it can start now, with tools already in hand.

But the template has real limits, and they mirror the gaps in the national scheme architecture it’s modelled on. NDPREM works best for migrants with capital and a business idea already in mind; it does little for the hospitality and construction workers Baheej describes, who need wage employment, not a loan. And the state’s proposed long-term bet — blue economy jobs, sustainable fisheries, eco-tourism — remains mostly aspirational, without the scheme convergence or funding commitments that agriculture and energy have already secured nationally through PM-KUSUM and the Green Hydrogen Mission.

For Cinil, back in Kerala and weighing what comes next, the choice in front of him is a narrower version of the one facing policymakers: use what exists now, or wait for something better suited to arrive. What would close that gap, according to both the report and Kerala’s own migration officials, is not a single scheme but three things moving together — reskilling programmes that lead directly into named jobs rather than general training, financing that reaches wage-seekers as well as entrepreneurs, and faster investment in the blue-economy and green-services sectors the state is actually positioned to build. None of that requires new institutions to invent. It requires the ones already in place — NORKA Roots, PM-KUSUM, state industrial policy — to move at the speed the crisis demands. As opportunities in the Gulf grow more uncertain, the test for Kerala’s green transition won’t be how large the numbers get by 2047, but whether workers like Cinil find a next job before the wait becomes permanent.

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