Gulf- India relations
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The importance of the Gulf to India
As in 2024
Sachin Parashar, February 17, 2024: The Times of India
From: Sachin Parashar, February 17, 2024: The Times of India
From: Sachin Parashar, February 17, 2024: The Times of India
Explains Sachin Parashar
Gulf Cooperation Council (GCC) countries – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE – together host an almost 9 million-strong Indian expatriate community. NRIs and PIOs in these countries together represent the largest source of remittances for India. GCC countries had an almost 30% share of the $90 billion India received in remittances in 2021-22 with UAE alone accounting for 18%.
The Gulf countries, including Iraq, are an important and reliable source of oil and gas for India, supplying around 60% of India’s oil needs. Qatar is India’s largest source of both LNG and LPG.
A part of India’s extended neighbourhood, the GCC bloc is overall India’s largest trading partner. UAE is India’s third largest trading partner followed by Saudi Arabia. Given the large Muslim community in India, it also serves New Delhi’s interests to have strong ties with the Arab world. The presence of some of these friendly states also helps dilute, to an extent, the Pakistan-sponsored anti-India agenda in the Organisation of Islamic Cooperation (OIC).
The Modi Factor
In his 10 years as PM, Modi has made 13 visits to GCC countries, seven of those to UAE alone. He has also travelled to Iran, Egypt and Jordan on his way to Palestine, making it 15 trips to the Middle East. The Modi dispensation sees it as a sign of Congress apathy that Manmohan Singh never visited UAE during his 10 years as PM. In fact, Modi was the first PM to visit the country in 34 years when he landed there in 2015.
India’s engagement with the Gulf has undergone a transformation in recent years, as evidenced by burgeoning trade, investment and defence ties. It’s also an acknowledgement of India as a credible partner that does not interfere in any intra-GCC conflicts or rivalries. It also helps that Modi’s personalised style of diplomacy has clicked with rulers in the region. His frequent Arab/ Gulf sojourns have also addressed any misgivings these states might have had about India’s growing ties with Israel. New Delhi’s efforts to reinforce its presence come even as China seeks to fill the void created by US’ declining influence with some of the Gulf states.
On Same Page On Terror
Countries like Saudi Arabia and UAE have now become more responsive to India’s concerns on terrorism, notwithstanding Pakistan’s relentless flogging of the Kashmir issue with its Arab partners. The improving trust factor has led to enhanced focus on security ties and behind-the-scenes intelligence and diplomatic manoeuvrings. The release of eight ex-Indian Navy personnel by Qatar is seen as an outcome of the same.
There’s now closer cooperation on counter-terrorism, defence industries and capacity-building, and in holding joint military exercises. If Oman has allowed India access to the strategical Duqm port, Saudi Crown Prince MbS pledged investments worth $100 billion on his 2019 visit to India. UAE, the fourth-largest FDI source for India, has committed to investing $75 billion in India’s infrastructure sector. Significantly, the first India-UAE Investment Summit was held in 12 11 109876543210 Srinagar last year where EMAAR group said it will invest Rs 500 crore in a commercial complex there.
Recent India-centric initiatives like the India-Middle-East-Europe Economic Corridor (IMEEC), I2U2 and India-UAE-France trilateral are also attributed to India’s emergence as a credible player in the region. UAE has just signed a bilateral investment treaty with India that is expected to boost India’s manufacturing sector and exports.
IMEEC, A Game Changer?
Leaders of Saudi Arabia and UAE were present in India last year for the launch of IMEEC, the transcontinental corridor that’s tipped to stimulate growth via enhanced connectivity and economic integration while potentially providing an alternative to China’s BRI. While there are genuine concerns about how the conflict in West Asia and schisms in the US-backed Saudi-Israel peace process will impact the initiative, UAE and India took the lead this week by signing an agreement, the first under IMEEC, for regional connectivity.
The eastern corridor of the project will link India to the Arabian Gulf, allowing New Delhi to ramp up its strategic footprint in a region that is crucial for its energy security. There’s no doubt that IMEEC has opened a new chapter in India-Gulf cooperation as India and the US focus on delivering sustainable growth and Arab states seek to cut their reliance on hydrocarbon ex- ports and bolster their role in the global economy.
The West Asia Situation
India’s position initially seemed to run counter to its Gulf partners but it course-corrected with an unequivocal condemnation of the October 7 Hamas attacks while reiterating its support for the two-state solution and calling for an end to civilian killings. Finally, backtracking from its original position, India supported a resolution in the UNGA seeking an immediate humanitarian ceasefire in Gaza. Going by the Gulf’s continued engagement with India, which saw the Oman Sultan visiting India in December and Modi’s two-nation tour this week, it appears the Arab world has taken note of India’s evolving position.
DEEPENING EXCHANGES
UAE
➤Comprehensive Economic Partnership Agreement (CEPA) signed in 2022, making UAE the fourth largest investor in India
➤Infrastructure Investment Fund of $75 billion set up in 2015 hIIT-Delhi campus set up in Abu Dhabi in 2022
➤Participation in India’s strategic petroleum reserves
➤Investment in real estate, telecommunications, energy sectors
Saudi Arabia
➤Saudi Public Investment Fund’s investment in Reliance Jio platforms ($1.5 billion)
➤SABIC’s investment of over $100 million in technology and innovation centre in Bengaluru
➤Saudi Crown Prince MbS’ announcement of $100 billion investment in India
➤Investment in sectors such as management and consultancy services, construction, telecommunications, IT, financial services, and pharmaceuticals
Qatar
➤ MoU for investment in India’s National Investment and Infrastructure Fund (NIIF) in June 2016
➤India-Qatar Business Forum comprising senior representatives of Indian companies and Qatari businessmen nominated by Qatar Chamber of Commerce and Industry
➤Make in India Week’ and other initiatives offering investment opportunities to Qatari businesses
YEAR-WISE DEVELOPMENTS
2022
Remarks about Prophet Muhammad
June 7, 2022: The Times of India
From: June 7, 2022: The Times of India
New Delhi : India slammed the Organisation of Islamic Countries (OIC) and Pakistan for their attacks over the controversial remarks made by BJP spokespersons against Prophet Muhammad even as the UAE, Oman, Bahrain and Jordan joined the chorus of denunciation.
The row sparked by the BJP spokespersons’ remarks continued to inflame passions across the Arab world. Besides, Indonesia also summo- ned the Indian ambassador and condemned the remarks. Maldives and Egypt, too, condemned the statements.
While India was silent on the condemnation by Gulf countries, it attacked the OIC and Pakistan for wading into the fracas. On Pakistan, the fo- reign ministry said that the absurdity of a serial violator of minority rights commenting on the treatment of minorities in another nation was not lost on anyone. India also rejected the OIC’s “unwarranted and narrow-minded” comments on the issue, accuses it of pur- suing a divisive agenda at the behest of “vested interests”. India believes that the OIC has allowed its agenda to be hijacked by Pakistan. Importantly, many of the countries critical of India are OIC members.
