India’s relationship with the Gulf Cooperation Council (GCC) countries has grown into one of the most dynamic and multi-faceted partnerships in the world today. Rooted in deep cultural connections and strategic economic interests, this partnership spans across vital sectors like energy, defence, and healthcare. The Gulf region has become a crucial partner in India’s quest for energy security, while India has emerged as a significant partner in the Gulf’s economic diversification and human resource development.

A Robust Economic Partnership

Trade and investment between India and the Gulf countries have reached unprecedented levels, making the GCC a vital economic partner for India. Addressing the ‘India MENA Business Dialogue: Bridging Economics, Fostering Growth’, organized by FICCI, Aseem Mahajan, Joint Secretary for the Gulf, Ministry of External Affairs (MEA), the GCC countries contribute to 15 percent of India’s total trade, with bilateral trade standing at an impressive US$162 billion last year. Despite fluctuations in global trade, India’s exports to the Gulf region have continued to grow, indicating a strong and resilient economic relationship.

India exports a wide range of goods to the Gulf, including food products, jewellery, synthetic fibres, textiles, pharmaceuticals, and engineering goods. These sectors hold tremendous potential for further growth, especially underpinned by agreements like the India-UAE Comprehensive Economic Partnership Agreement (CEPA) signed in 2022, which has significantly boosted trade between the two countries.

Sovereign Wealth Funds

The Gulf region’s sovereign wealth funds, especially from Saudi Arabia, the UAE, Qatar, and Kuwait, are actively exploring investment opportunities in India. Key sectors such as infrastructure, hydrocarbons, renewable energy, food processing, technology, healthcare, hospitality, and tourism are at the forefront of these investments, reflecting the diverse and deepening economic ties.

Energy: The Backbone of India-Gulf Relations

Energy cooperation remains the cornerstone of India-Gulf relations. The Gulf region, with its vast oil and gas reserves, plays a pivotal role in ensuring India’s energy security. Saudi Arabia, the UAE, and Qatar are among the largest suppliers of crude oil and liquefied natural gas (LNG) to India, providing a stable and reliable energy supply that fuels India’s growing economy.

This energy relationship is not just about trade; it is also about strategic investments. Indian companies are increasingly investing in Gulf energy projects, and conversely, Gulf energy giants are eyeing opportunities in India’s energy sector. As India transitions towards cleaner energy, the partnership is evolving to include renewable energy initiatives, with significant potential for collaboration in solar and wind energy projects.

Defence Ties: A Strategic Pillar

Defence cooperation between India and the Gulf countries has grown significantly in recent years. Regular high-level exchanges, joint military exercises, and defence agreements have strengthened this aspect of the relationship. The Indian Navy’s strategic presence in the Gulf, combined with regular visits of naval ships to the region, underscores the importance of maritime security cooperation in the Indian Ocean and beyond.

Moreover, Gulf countries, particularly Saudi Arabia and the UAE, are looking to diversify their defence partnerships. India, with its growing defence manufacturing capabilities and expertise in areas such as cybersecurity and counter-terrorism, is seen as a valuable partner. The participation of Gulf officers in Indian military training programs further cements this growing defence relationship.

Healthcare: A Growing Collaboration

Healthcare is another critical area where India and the Gulf countries are forging strong partnerships. The COVID-19 pandemic highlighted the need for robust healthcare systems and international cooperation in the sector. Indian pharmaceutical companies, known for producing affordable and high-quality medicines, have been instrumental in supplying the Gulf region with essential drugs and vaccines.

In addition to pharmaceuticals, India is also contributing to the Gulf’s healthcare sector through its skilled healthcare professionals. A significant number of Indian doctors, nurses, and healthcare workers are employed across the Gulf, playing a vital role in the region’s healthcare delivery. Furthermore, with the growing interest in medical tourism, India’s world-class healthcare facilities are attracting patients from the Gulf, further enhancing bilateral ties.

Looking Ahead: A Partnership with Immense Potential

As India and the Gulf countries continue to strengthen their ties, the future of this partnership looks promising. Initiatives such as the India-Middle East-Europe Economic Corridor (IMEC) represent significant opportunities for enhanced connectivity and economic cooperation. The potential signing of new trade agreements, like the ongoing discussions for a bilateral CEPA with Oman, could further boost trade and investment. Discussions for a bilateral CEPA with Oman are at an advanced stage.