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58.More information
The eight month-long Gulf crisis, which followed the Iraki invasion of Koweit, had at first financial implications for India due to the rise in oil prices and the repatriation of Indian expatriates affected by the conflict. Furthermore, these additional expenditures occurred at a time when the Indian economy was already showing signs of strains. If Saddam Hussein's adventurism was reprehensible, New Delhi was careful not to lend Us support to the coalition headed by the United States and directed against a country of the Islamic world with which India had until then friendly relations. Still India could not ignore the post-cold war balance of power. While sitting on the fence, the Indian diplomacy was taking the risk of losing credibility and of being edged out. This was all the more possible since the country was confronted with a serious political crisis. However this situation allowed for the elaboration of new strategies and ultimately the Gulf crisis was a transition period during which time-tested policies were questioned.
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