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India-Gulf Relations Towards a New Era

by Dr. ABED ELRAZEG ABU JAZER - 27 September, 2024, 12:00 2168 Views 0 Comment

Indian External Affairs Minister Dr. S. Jaishankar visited Riyadh, Saudi Arabia, from September 8-9, 2024, to attend the first-ever India–GCC Joint Ministerial Meeting for Strategic Dialogue.

This marked the inaugural meeting between India and the Gulf Cooperation Council (GCC) at the Foreign Ministers level, attended by the Foreign Ministers of all GCC countries and His Excellency Jasem Mohamed Albudaiwi, Secretary General of the GCC.

Additionally, the visit coincided with the first official visit to India of His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, from September 9-10, 2024, at the invitation of Prime Minister Shri Narendra Modi.

A Strategic Leap in India-Gulf Relations

Dr. S. Jaishankar’s participation in this historic strategic dialogue underscored a significant qualitative leap in bilateral and multilateral relations between India and the Arab Gulf states. His presence in this forum, alongside similar platforms formed between the GCC, Russia, and Brazil, highlighted the importance of deepening India-GCC partnerships.

The India–GCC Joint Ministerial Meeting emphasised the growing strategic partnership between India and the GCC, focusing on collaboration in trade, investment, infrastructure development, and people-to-people ties. This partnership is poised to bolster economic growth not only in the region and India but also to contribute to a more stable and prosperous global economy.

The meeting also saw the adoption of a Joint Action Plan for 2024-2028, outlining various joint activities in sectors such as health, trade, security, agriculture, food security, transportation, energy, and culture. The scope of cooperation may expand further, subject to mutual consensus.

Dr. Jaishankar also used the opportunity to hold several bilateral meetings with the Foreign Ministers of GCC countries, as well as with the Foreign Ministers of Russia and Brazil.

India-GCC Economic and Strategic Importance

The GCC, which comprises the UAE, Bahrain, Saudi Arabia, Oman, Qatar, and Kuwait, holds significant influence, with India’s trade volume with these nations reaching USD 184.46 billion in the 2022-23 financial year. Dr. Jaishankar expressed his satisfaction with the dialogue, emphasizing the importance of focusing on a future-oriented partnership between India and the GCC.

India’s economic ties with the GCC have been steadily increasing, especially due to the growth in oil imports. Dr. Jaishankar pointed out that the GCC is a “cornerstone of global energy supply” and called for deepening collaboration, which he said would help “stabilize markets, drive innovation, and enhance energy security.” As the world’s fifth-largest economy, India is a major energy importer, making these relationships even more critical.

Sheikh Khaled bin Mohamed bin Zayed Al Nahyan’s Visit to India

In parallel to the ministerial meeting, His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, led a delegation of ministers, senior officials, and a large business contingent to India from September 9-10, 2024. During his visit, he met with President Droupadi Murmu and Prime Minister Narendra Modi. He also participated in a business forum in Mumbai, strengthening economic ties between India and the UAE.

Four significant agreements were signed between Indian and UAE entities in the energy sector:

  1. A Memorandum of Understanding (MoU) on the operations and maintenance of the Barakah Nuclear Power Plant between Emirates Nuclear Energy Company (ENEC) and Nuclear Power Corporation of India Limited (NPCIL).
  2. An agreement for the long-term supply of LNG between Abu Dhabi National Oil Company (ADNOC) and Indian Oil Corporation Limited.
  3. An MoU between ADNOC and India Strategic Petroleum Reserve Limited (ISPRL).
  4. A Production Concession Agreement for Abu Dhabi Onshore Block 1 between Urja Bharat and ADNOC.

Additionally, a MoU was signed between the Government of Gujarat and Abu Dhabi Developmental Holding Company PJSC (ADQ) for the development of food parks in India.

Strengthening India-UAE Ties

India and the UAE have seen a notable upswing in relations in recent years, with approximately 3.5 million Indians forming the largest expatriate group in the UAE. The two countries are among each other’s top trading partners, with bilateral trade reaching USD 85 billion in the 2022-23 financial year.

Challenges and the Future of India-Gulf Relations

The development in Gulf-India relations comes amid challenges, including ongoing conflicts in the West Asian region, such as the Israeli war on Gaza, which has resulted in the loss of over 40,000 Palestinian lives. In his address, Dr. Jaishankar reiterated India’s long-standing support for resolving the Palestinian issue through a two-state solution. He also highlighted India’s contributions to building Palestinian institutions and capacities.

India’s relations with the Arab Gulf countries are a vital pillar of its foreign policy, given the shared interests between the two sides, the presence of about 9 million Indian workers in the Gulf, and a significant trade exchange volume. Security and strategic relations, as well as energy provision, remain crucial areas of collaboration.

Military and naval cooperation has also intensified due to tensions in the Red Sea region. In 2022-23, the total trade volume between India and the GCC reached USD 184.46 billion. Additionally, India plays a significant role in providing labor and essential goods, including vegetables and fruits, which serve as a vital food supply for the Gulf region.

As both India and the Gulf states look towards the future, there is growing anticipation of further deepening ties to advance sustainable development, regional stability, and international security.

Dr. ABED ELRAZEG ABU JAZER
Author has been working as a professional journalist in the Palestinian Territories since 1995, in a number of Arab, Gulf, Palestinian and foreign newspapers. He holds a master's degree from Al-Azhar University in Gaza in Middle Eastern Studies, Ph.D. in International Relations from Jamia Millia Islamia University, New Delhi. He has been appointed in India as a media advisor to the Palestinian Embassy since 2014.
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