INDIA AND GULF COOPERATION COUNCIL

The Gulf Cooperation Council (GCC) as a collective entity has vital significance for India and constitutes the “extended” neighborhood of India. The region’s substantial oil and gas reserves are of immense importance for India’s energy security. The GCC countries collectively host a large Indian expatriate community. Through collaborative initiatives in trade, investment, infrastructure development, and people to people ties, this partnership not only bolsters economic growth within the region and India but also contributes to a more stable and prosperous global economy.

Strategic Dialogue:

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 also going through significant transformation, and therefore, the areas of cooperation are also broadening to new horizons.

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 Dr. S. Jaishankar’s visit to Riyadh (September 10-12, 2022). This was followed by the first India-GCC Senior Officials Meeting was held in March 20, 2023 in Riyadh.

4. In year 2024, the first ever India–GCC Joint Ministerial Meeting for Strategic Dialogue was held on September 9, 2024 in Riyadh. EAM Dr. S. Jaishankar co-chaired the meeting along with His Excellency Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani, Prime Minister and Foreign Minister of Qatar, as President of the GCC Ministerial Council. This was the first meeting between India and the Gulf Cooperation Council (GCC) at the Foreign Ministers level, and was attended by Foreign Ministers of all the GCC countries and Secretary General of the GCC His Excellency Jasem Mohamed Albudaiwi.

5. The ministerial meeting also adopted a Joint Action Plan 2024-2028 for undertaking various joint activities in diverse areas including health, trade, security, agriculture and food security, transportation, energy, culture, amongst others.

Economic and Commercial Relations:

6. India’s economic linkages with the GCC have increased steadily especially due to growth in oil imports. 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 (Source: DGFT). The total FDI Equity Inflow from GCC countries (Apr 2000-Sep 2024) is USD 27.587 billion (Source: DPIIT).

India’s trade with GCC countries

(All figures in USD billion)

7. Indian Community: 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.

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(21 March 2025)