The internal situation in Iraq has remained turbulent despite the formation of a government under Mohammed Shia al-Sudani. Although it ended the political logjam, a new political problem emerged in November 2023, when the Supreme Court cancelled the membership of speaker of the parliament Mohammed al-Halboushi and it took a year for the Iraqi political parties to elect his successor. The ruling coalition also brought the controversial electoral reforms that is expected to harm the smaller parties that had done well during the 2021 parliamentary elections. Internal security situation was affected as the Hamas-Israel war broke out and the Gaza crisis intensified with fears of Iraq getting embroiled in a war after Lebanon was drawn into it due to Hezbollah’s reaction. Despite internal problems, Iraq had emerged as a major oil supplier to India and this forms the basis of the bilateral relations. India has been engaging with various stakeholders in the country to explore possibilities for further cooperation including in the healthcare, construction, ITC and investments in other areas.