About Us India-GCC relations
  • Home ›   Bilateral ›   India-GCC relations

INDIA AND GULF COOPERATION COUNCIL

Introduction

The Gulf Cooperation Council (GCC) as a collective entity has vital significance for India. The Gulf constitutes the “immediate” neighborhood of India separated only by the Arabian Sea. The GCC has emerged as a major trading partner for India and it also has a vast potential as an important investment partner, which is well evident from the slew of investment announcements by GCC countries in India, particularly the UAE and Saudi Arabia. The GCC’s substantial oil and gas reserves are of immense importance for India’s energy security. The GCC countries are also collectively host to a large Indian expatriate community. In effect, the GCC offers significant potential for cooperation, including in the sectors of political, security, defence, energy, social, cultural, and people-to-people ties.

Strategic Relations

2. From the strategic point of view, India and GCC share the desire for political stability and security in the region. The common political and security concerns of India and GCC translate into efforts for peace, security and stability in the Gulf region and South Asia. The emerging common security perceptions create further opportunities for India-GCC cooperation in the future. The GCC states are going through significant transformations, and therefore, the areas for cooperation are also widening to newer horizons.

Political Dialogue

3. The first-ever India-GCC Political Dialogue was held on the sidelines of the United Nations General Assembly on September 26, 2003. Both sides recognized the significance of this dialogue, which marked a new era in the India-GCC relationship. India and GCC signed an MoU on the Mechanisms of Consultations on September 10, 2022, during EAM’s visit to Riyadh (September 10-12, 2022). The MoU creates a framework for annual dialogue between EAM and the GCC-Troika (GCC-SG, Foreign Minister of the country holding current GCC presidency, and Foreign Minister of the country that will hold next GCC presidency), and any other Foreign Minister(s)/Senior Officials from the GCC countries. Following the signing of the MoU, the first India-GCC Senior Officials Meeting took place in March 20, 2023 in Riyadh during the visit of Dr. Ausaf Sayeed, Secretary (CPV & OIA), MEA. Shri Muktesh K. Pardeshi, Secretary (CPV & OIA), MEA, visited Riyadh on May 6-7, 2024 and met the Assistant Secretary General of the Gulf Cooperation Council for Political Affairs and Negotiations, Dr. Abdulaziz Aluwaisheg.

Economic and Commercial Relations

4. India’s old, historical ties with GCC states, coupled with increasing imports of oil and gas, growing trade and investment opportunities, and presence of approximately 8.9 million Indian workers in the region, are of vital interest. India’s economic linkages with the GCC have increased steadily, especially due to growth in oil imports. These have increased significantly in FY22 due to rising oil prices in the wake of the Russian-Ukrainian conflict, as well as due to the resumption of demand following the COVID-19 disruption. During FY 2023-24, India-GCC bilateral trade stood at USD 161.59 billion. India’s exports were USD 56.3 billion in FY 2023-24, India’s imports were USD 105.3 billion in FY 2023-24 (DGFT figures).

India-GCC Industrial Conference: The first GCC-India Industrial Conference was held in Mumbai in February 2004, the second was held in Muscat in March 2006, the third was held in Mumbai in May 2007 and the fourth was held at King Abdullah Economic City, Jeddah in November 2015.

India’s trade with GCC countries

(All figures in USD billion)

Country

2020-21

2021-22

2022-23

2023-24

Import

Export

Total

Import

Export

Total

Import

Export

Total

Import

Export

Total

KSA

16.187

5.857

22.04

34.101

8.759

42.86

42.035

10.728

52.763

31.4

11.56

42.9

UAE

26.623

16.680

43.30

44.833

28.045

72.88

53.232

31.609

84.840

48.0

35.6

83.6

Oman

3.088

2.355

5.44

6.841

3.148

9.99

7.911

4.477

12.388

4.5

4.4

8.9

Kuwait

5.214

1.054

6.27

11.002

1.242

12.24

12.247

1.560

13.808

8.3

3.1

10.4

Qatar

7.930

1.285

9.22

13.194

1.838

15.03

16.808

1.967

18.775

12.3

1.7

14.0

Bahrain

0.547

0.528

1.08

0.753

0.900

1.65

1.015

0.965

1.980

0.83

0.9

1.7

Total

59.59

27.76

87.35

110.72

43.93

154.66

133.248

51.306

184.554

105.3

56.3

161.59

5. According to latest figures, there are approximately 8.9 million Indian expats residing in GCC countries which is approximately 66% of non-resident Indians. According to the RBI Remittances Survey 2021, the share of remittances from the GCC region in India’s inward remittances is estimated to have declined from more than 50% in 2016-17 to about 30% in 2020-21, which still represents a major component of India’s total inward remittances. The Indian diaspora in the GCC countries has been recognized for their contribution to the development of the region and are also appreciated for their hard working, law-abiding and peaceful nature.

***

September, 2024