INDIA-PERSIAN GULF REGION

INDIA-PERSIAN GULF REGION

The Persian Gulf region is strategically important due to its significant oil reserves, and India has cultivated relationships with its eight countries, including Saudi Arabia, UAE, and Iran.

1. Political Relations
   • Balanced Approach: India has adopted a balanced stance with Gulf powers, holding high-profile visits with leaders from Saudi Arabia, Qatar, UAE, and Iran.
     • In August 2015, Modi became the first Indian PM to visit the UAE in 30 years, which he visited again in 2018 and 2019.
   • Awards: PM Modi received the Order of Zayed, the UAE’s highest civil decoration; King Abdul Aziz Sash Award of Saudi Arabia and the King Hamad Order of the Renaissance, the third highest civilian order of Bahrain.

1. Economic Relations
   • Trade: The UAE and Saudi Arabia are India’s third and fourth largest trading partners, with trade from the Gulf region comprising nearly 19% of India’s total global trade (2019-20).
   • Investment: Gulf countries have significantly increased investment in India, especially in energy, infrastructure, and petrochemicals.
2. Energy Security: Over 50% of India’s oil imports come from the Gulf region, highlighting its critical role in India’s energy security.
3. Diaspora: About 9 million Indians reside in the Gulf, sending remittances that constitute a vital part of India’s GDP.
4. Security
   • Defense and Anti-Piracy Cooperation: India collaborates with Gulf countries on defense, counter-terrorism, and anti-piracy. This includes joint exercises and strategic access to ports like Oman’s Duqm SEZ for India’s Navy.
   • Bilateral Defense Exercises: India conducts regular defense exercises with nations such as Saudi Arabia, Oman, Kuwait, and Iran.
5. Cultural Cooperation
   • Historical Ties: Relations date back centuries, with trade and cultural connections between the Indus Valley Civilization and Dilmun (present-day Bahrain).
   • Religious Significance: Saudi Arabia, as home to Mecca and Medina, holds spiritual significance for India’s Muslim community.

1. Pandemic Cooperation
   • Supply of Essentials: During the COVID-19 pandemic, India supplied essential medicines and goods to the Gulf region.
   • Health Support: India deployed thousands of healthcare professionals to assist Gulf countries during the pandemic.

Significance of the India-Gulf Region Relationship

1. Significance of the Gulf Region for India
   • Diaspora and Remittances: India’s large expatriate population in the Gulf contributes significantly to its remittance inflows.
   • Economic Diversification: As Gulf countries diversify beyond oil, India can benefit by providing technology, education, and commerce.
   • Investment Opportunities: India’s economic engagement with Gulf investors is expanding, with investments flowing into infrastructure and renewable energy.
   • Geostrategic Importance: The Gulf region provides India strategic access to the Arabian Sea and Central Asia, countering Chinese influence in the region.
2. Significance of India for the Gulf Region
   • Labor Force: India provides a skilled workforce, especially in sectors like healthcare and construction, which are crucial for Gulf economies.
   • Strategic Ally: India’s strategic location and growing influence in the Indo-Pacific make it a valuable partner for Gulf countries in terms of security and regional stability.
   • Strategic partnership: India, which is a maritime neighbour, with its 2.6 trillion-dollar economy, leading consumer of energy resources and with a robust defence apparatus fits into the Gulf countries notions of a strategic partner.
   • Economic benefit: Investing in India will have long-term positive benefits for the Arab countries as India, with a market of 1.3 billion offers unmatched potential.

Challenges in India-Gulf Relations

1. Roles of External Players
   • Pakistan Factor: Pakistan’s active engagement in the Middle East, especially via the OIC, is an attempt to gain support on issues like Kashmir. This creates a complex balance of power and impacts India’s relationships with Gulf countries.

• Role of China: China has expanded its influence in the Gulf, particularly through a strategic cooperation pact with Iran, which may complicate India’s interests in the region.
• American Policy: The U.S.’s role in the region, especially its relations with Israel and contentious issues like Palestine, presents challenges for India as it seeks to maintain a balanced approach.

1. Internal Issues
   • Relations with Iran: U.S. sanctions on Iran and geopolitical tensions involving Saudi Arabia, Iran, and Israel require India to navigate its ties with these nations carefully.
   • Diaspora Concerns: Protecting the rights and safety of Indian nationals, especially regarding labor laws, is a priority for India, as they represent a significant part of the diaspora in the Gulf.
2. Other Issues
   • Regional Conflicts: Rivalries, such as Saudi-Iran and Arab-Israel tensions, create instability.
   • Protectionism: Policies by the Gulf Cooperation Council favoring local employment may impact Indian workers in the Gulf.
   • Security: Issues such as radicalization and terrorism are of concern for both India and the Gulf states.
3. Impact of COVID-19: The pandemic, with its impact on oil prices and remittances, has hurt Gulf economies, which also affects India through reduced economic ties and diaspora remittances.

Way Forward

• Support in Modernization: India should back Gulf countries’ efforts to reduce extremism and promote social moderation, which aligns with India’s own interests.
• Discard Old Perceptions: India needs to move past outdated views on the Gulf and seize opportunities for strategic partnerships.
• Secular Foreign Policy: India should approach the region with a non-aligned, secular perspective that focuses on economic and security interests rather than religious or sectarian issues.

There is a need to further strengthen relations with Gulf countries. These countries know the economic and diplomatic potentials of India and thus, are willing to widen their ties with India in strategic fields. India can be instrumental in promoting stability in the region, which also helps its own energy and security requirements. It would be in our own interests to further develop economic, diplomatic and cultural relations with these countries.