Introduction
When it comes to the relation between India and Gulf, it goes back to more than five thousand years ago. The two engaged in trade when civilization was taking place between the Dilmun and Indus Valley. In fact, history indicates that, the Indian rupee was used as a legal tender in Oman, Qatar, Bahrain and Kuwait, all the way to the 60s (Chaudhury, 2018). Today, the Gulf serves as an extended neighbor of India, owing to influence and interests between the two. In the ensuing discussion, the focus is on the historical background between the two regions, India’s interest in the Gulf, relations between the two in the political, economic, commercial, military, and security fields. The final part delves on future relations between India and GCC states.
The relationship between India and the Gulf: A historical background
India realized independence in 1947, when the Gulf region was unrecognizable. The GCC was not in existence then, until Bahrain and UAE were formed years later (Chaudhury, 2018). However, the relationship between the two regions is much older, and dates back to centuries ago. According to historians, the two regions were formed on the basis of world’s earliest maritime routes. Trade by sea saw the emergence of the two regions, especially exchange of pearls, spices and cloth (Pillalamarri, 2016). Gulf coastal communities grew as a result of this trade, and they would later grow into large towns. The relationship between the two continued to strengthen before independence, when gulf nations used Indian stamps and rupees. The discovery of oil marked the start of the long relationship that is seen today between Gulf and India. Currently, 60% of energy used in India comes from GCC.
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India’s interests in the Gulf
India’s interests in Gulf have purely been heavily influenced by need for fuel imports and Indian labor. Qatar, Iran and Saudi Arabia have been supplying hydrocarbons in India. Since the mid 70s when oil boom was realized, there was an influx of Indians working and living in the Gulf States namely UAE, Oman, Bahrain, Qatar, Kuwait and Saudi Arabia (Pradhan, 2014). By 2012, the population of Indians in Gulf region alone stood at 5.7 million, and by 2018 it rose to 8.5 million. Global remittances from Indians based in Gulf rose from $64 billion to $79 billion in 2012-18.
Relations between India and the GCC states in the political, economic, commercial, military and security fields
In view of politics and security, the relation has become intense with the two regions confronting Islamic terrorism. The desire by the two to tackle this menace has made them to make it a priority to realize political stability and security in the region (Pradhan, 2014). In that sense, the two have formed a coalition to achieve this goal, and have entered into strategic relations meant to fulfill the political and security concerns. In a bid to overcome the nontraditional and traditional security threats, GCC and India resolved to form a Political Dialogue. The platform has enabled discussions on pressing issues in Middle East and Iraq, UN reforms and rise in terrorism to be discussed.
In terms of economics, India has increased the gas and oil imports from GCC nations. The move has led to closer economic relations and increased opportunities for more investment and trade in the region. According to reports, the bilateral trade between the two is estimated to be over $145.72 billion, and it continues to increase (Pillalamarri, 2016).
From a commercial perspective, companies from India are focusing on expanding into UAE’s commercial zone. They are focused on joining the food processing, information technology, energy and transportation sectors.
India and Gulf nations such as Qatar have been having military relations. For instance, in 2008, the two signed a defense agreement that meant India would provide military assistance to protect Qatar interests and assets from external threats (Chaudhury, 2018).
Future of Relations between India and the GCC States
In future, the two regions are committed towards achieving high trade volumes and commerce. Their focus is mainly on complimenting each other economically. Indian products will continue to dominate the GCC markets, while in return, India will continue to source hydrocarbons from the region. Now and in the future, they will continue to establish security, political and strategic issues consensus (Chaudhury, 2018).
Conclusion
In overall, GCC and India have been in a cordial relationship for a long time. They share interests in virtually every field be it political, social, economic and security fields. Reports indicate that, the bilateral trade between the two is estimated to be over $145.72 billion. In future, the two regions focus on increasing trade volumes, with Indian products dominating GCC region.
References
Chaudhury, R. (2018). India and the Gulf region: building strategic partnerships. Retrieved from <https://www.iiss.org/blogs/analysis/2018/08/india-gulf-strategic-partnerships>
Pillalamarri, A. (2016). India and the Gulf States Share a Long History. Retrieved from <https://thediplomat.com/2016/06/india-and-the-gulf-states-share-a-long-history/>
Pradhan, P. K. (2014). India’s Relationship with the Gulf Cooperation Council: Need to Look beyond Business. Retrieved from <https://idsa.in/monograph/IndiasRelationshipWithTheGCC
