The recent virtual interaction between India and the Gulf Cooperation Council (GCC), the noteworthy regional organization encompassing nearly all Arab countries, has become a talking point. During this conversation, several topics were touched upon that shed light on the growing relationship between India and the GCC member countries.
Indian Workers Keen to Return to Arab Countries
India has recently urged GCC member states to ensure the seamless return of Indian workers eager to resume their roles as Covid-19 restrictions ease. This could potentially be achieved through the establishment of sustainable travel bubble arrangements. The GCC region, which includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE, hosts most of the eight million Indians living and working in West Asia. Such travel arrangements are reciprocal in nature, aimed at providing benefits to airlines from both countries.
Proceedings and Commitments from the Meeting
During the meeting, both sides reaffirmed their commitment to rejuvenate multilateral institutions to better reflect the realities of the 21st century. Both parties also expressed their determination to collaboratively tackle contemporary challenges, including the Covid-19 pandemic, climate change, sustainable development, and terrorism. The GCC applauded India’s admittance to the United Nations Security Council as a non-permanent member starting January 2021. India reiterated its commitment to maintaining the supply of essential goods, including food and medicines, to the Gulf region, even amidst the lockdowns imposed due to the pandemic.
About the Gulf Cooperation Council
Formed in 1981, the GCC was established by Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE due to their commonalities in terms of geography, similar political systems founded on Islamic beliefs, and shared objectives. The council is a political, economic, social, and regional organization, structured around the Supreme Council, Ministerial Council, and the Secretariat General, headquartered in Riyadh, Saudi Arabia.
India’s Relationship with the GCC
Political: India enjoys a healthy relationship with the GCC member countries, receiving high civilian orders from the UAE and Bahrain. The GCC countries have also maintained a neutral stance towards India’s domestic developments, such as the revocation of Jammu & Kashmir’s special status under Article 370.
Economic: India heavily depends on the GCC states for its energy supplies, and further receives an estimated USD 4.8 billion annually as remittances from Indians residing in these countries. The UAE and Saudi Arabia rank as India’s third and fourth-largest trading partners respectively, with total bilateral trade with the GCC countries standing at USD 121.34 billion for 2018-19.
Security: As members of the Financial Action Task Force (FATF), both India and the GCC have collaborated in several bilateral and multilateral exercises. In particular, Oman provides access to Port of Duqm SEZ, one of the largest deep-sea ports in the Indian Ocean, to the Indian Navy. Furthermore, India carries out bilateral naval and air force exercises with the UAE.
Looking Ahead
For India, the Gulf region holds significant historical, political, economic, strategic, and cultural value. A Free Trade Agreement (FTA) between India and GCC could act as a catalyst in strengthening this relationship. However, due to the current volatile situation in the GCC region, it is paramount that India takes necessary steps to safeguard its considerable economic, political and demographic stakes in the region.
