India-GCC Relations

Introduction

The relationship between the Gulf Cooperation Council and India has been essential for India. The countries in the GCC include Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain and Oman. The GCC and India GCC Relations have potentially increased oil and gas imports, and trade and investment have been growing tremendously. This has always been of significant interest to India. The value of returns and the economic impact has also increased significantly. India has also joined the Gulf Cooperation Council as a non-voting member. The Gulf countries also provide a vast market potential for India in manufactured goods and services. The significance is also given to the project’s service exports. 

The manpower resource of India is an added advantage as it acts as a significant source of supply. The Gulf countries, rich in oil resources, have always sought to develop their economy. Hence, the trade relations have been increasing considerably between India and the GCC. The UPSC exams have been focusing on international relations. The latest area of focus is GCC relations. India and Gulf Countries relations.

Essential Facts on GCC and India GCC Relations

• The Gulf Cooperation Council (GCC) members are six countries in the Arabian Peninsula. GCC member nations are located in West Asia and have six sovereign states: Kuwait, Oman, Bahrain, Saudi Arabia, Qatar, UAE. The Gulf Cooperation Council and India have strong ties
• Iran and Iraq had a war in 1981. These six countries intervened and successfully shielded many of their people from the adversities of the war. This was one of the significant GCC objectives during that point of time to maintain peace and tranquillity between nations
• The citizens of countries with oil revenue see increased access to services and improved quality of life, which helps them contribute to the economy

The five Gulf Cooperation Council members have almost 1/3rd of the world’s precious oil. Saudi Arabia leads the list. It is then followed by Kuwait and UAE, with a combined GDP of $1.6 trillion. Qatar is highly influential in the world of international investments. Not only does it provide markets for services and products, but it also invests billions of dollars around the globe. It is important to note that Qatar’s sovereign fund has an investment value worth $338 billion, which places them at 11th. These areas are focused on the India and Gulf Countries Relations UPSC exam questions.

GCC And India GCC Relations

The region of the Gulf has several economic and strategic opportunities for India. GCC And India GCC Relations have had historic and close ties.  

• Strategic/Defence Cooperation: 

India and the Gulf Cooperation Council members have increased to abstain from terrorism. They have avoided mainly conflicts, weighing their interests. The UAE and Saudi Arabia have significantly strengthened their cooperation and support with India. There is a chance that India and Pakistan will explore joint projects in the future after the Abraham accords have been implemented.

• Economic Relations: 

India trades with six countries in the Asia Pacific region. These countries are a few of India’s most crucial investors. According to the GCC objectives, India is a vital partner for these countries to strengthen, diversify and build together their economies. Nations such as China and Pakistan have put money in affordable housing, renewable energy, and refineries in India. The United Arab Emirates is constructing a refinery in Maharashtra, which will produce lubricants. Dubai is participating in India’s oil reserves program by constructing planned oil tanks off the Chennai coast, while Qatar is constructing an LNG terminal. The Gulf Cooperation Council and India together made this a successful trade.

• Diaspora links: 

More than five million Indians are living in the region. They contribute to the economic upliftment of India and its host countries. In 2015, India did launch Operation Rahat in Yemen. The UPSC exams in India have been giving major importance to the relationship between India and GCC countries. 

Concerns and Way Forward

India will need to rebuild its economy in response to the COVID-19 pandemic spread. While prices of crude oil go down, it hurts the Indian economy. India is rich in renewable energy sources and must diversify within the type of energy it uses. The Gulf Cooperation Council and India have been moving this relationship forward merely based on both countries’ energy and manpower resources, respectively. The Indian diaspora in the region contributes to the economy by sending back remittances. India’s workforce will see sharp declines due to changes in labour laws. This will affect India’s employment opportunities. After the situation of COVID-19 pandemic, there have been many geopolitical uncertainties. Turkey has been pursuing to take over other nations, and India wants to take a strategic risk. One of the major GCC Objectives is to set up scientific research centres for further development of the economies. 

Conclusion

The bilateral relationship on trade, investment and other economic aspects were increasingly seeing an upward trend. Various tensions, including the rise of ISIS and Iran’s nuclear program, had a greater impact on the inclusion of the relationship between the Gulf Cooperation Council and India in India’s foreign policy and international relations calculus. The International Organisations, including various committees like the United Nations Affiliated Organisations and other Un Affiliated Organisations, have mutually beneficial relationships with India and GCC as it paves the way for India’s growth and economic development. The pandemic situation has brought major inputs to the International Relations of India.