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India-Gulf ties gain new strategic depth despite regional crises
While recent regional crises have kept India-Gulf ties subdued, the depth of the relations, combined with recent momentum behind these partnerships, creates a strong foundation for increased integration over the coming decades read more
Despite escalating regional crises, from the recent India-Pakistan tensions after the Pahalgam terror attack to the ongoing conflict in Gaza, India's strategic ties with the Gulf are growing stronger.
On April 22, the same day a Pakistan-backed militant group attacked tourists in Jammu and Kashmir's Pahalgam, Prime Minister Narendra Modi was in Jeddah meeting with Saudi Crown Prince Mohammed bin Salman.
It marked his third visit to Saudi Arabia as prime minister, underscoring a relationship that has steadily expanded in recent years.
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According to an Atlantic Council report, PM Modi's visits in 2016 and 2019 laid the groundwork for the bilateral Strategic Partnership Council, which has since enabled around 50 cooperation agreements in areas such as construction, telecommunications, and technology.
A joint committee is also working toward facilitating $100 billion in Saudi investment into India, added the report.
While current regional tensions have overshadowed discussions about India-Gulf Cooperation Council (GCC) ties, the depth of the relations, combined with recent momentum behind these partnerships, creates a strong foundation for increased India-Gulf integration over the coming decades.
Strategic partnerships expand beyond oil
India's GDP reached $3.56 trillion in 2023, up from $2.68 trillion in 2020, with projected growth of 6.5% in 2024. This rapid economic expansion has driven a sharp rise in energy demand, making India the world's third-largest oil consumer, after China and the United States.
As India seeks to meet this growing demand while transitioning to cleaner energy sources, its partnerships with Gulf countries have become increasingly strategic.
Reflecting this shift, recent deals include Saudi Arabia's commitment of $12 billion to India's renewable energy and infrastructure sectors, along with new joint ventures in green hydrogen, solar power, and battery storage.
The India-Saudi Strategic Partnership Council now functions on two parallel tracks —political/security and economic/investment — highlighting a deepening, institutionalised partnership at the highest levels.
India deepens defence ties across the Gulf
India's defence ties with Saudi Arabia, the UAE, and Oman have grown, with regular joint exercises, defence dialogues, and agreements on intelligence sharing and counterterrorism.
India and Saudi Arabia signed a defence cooperation agreement in 2014, enabling the exchange of military information, joint training, and collaboration in areas like logistics, hydrography, and security.
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Since then, the two countries have conducted regular joint exercises across all military branches, and their Joint Committee on Defence Cooperation has met six times. Most recently, the Indian Army and Royal Saudi Land Forces held their first Army-to-Army Staff Talks on April 23–24 to further boost ties.
India's security partnership with Oman is even older and deeper. A military protocol was signed in 1972, followed by a 2005 defence cooperation MoU. In 2018, Prime Minister Modi secured access for the Indian Navy to use Oman's Duqm port for logistics and maintenance.
The UAE is also expanding its defence ties with India. During his official visit to India in May, Defence Minister Sheikh Hamdan bin Mohammed Al Maktoum formalised cooperation between the two countries' coast guards and defence industries. A joint statement emphasised the need to scale up defence collaboration to match the rapid growth in trade and business.
Free trade on the horizon
The Gulf Cooperation Council (GCC), a regional bloc of six countries, plans to launch free trade agreement (FTA) negotiations with India in 2025, according to the Ministry of External Affairs (MEA).
This initiative aims to reduce trade barriers, increase economic integration, and foster collaboration across digital, industrial, and service sectors.
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India and the GCC share a robust relationship, particularly in the areas of trade, energy, and investment. The GCC has emerged as one of India's key trading partners, with bilateral trade steadily increasing in recent years.
Ongoing negotiations for a Free Trade Agreement (FTA) are part of New Delhi's broader push to expand economic ties with regional and global blocs. India has been actively pursuing FTAs with multiple countries and regions to boost trade, attract investment, and support long-term economic growth.
India-Middle East-Europe Economic Corridor (IMEC)
The India-Middle East-Europe Economic Corridor (IMEC), unveiled at the G20 Summit in September 2023, is a key symbol of India's expanding engagement with the Gulf and beyond. Designed to connect India to Europe via the Arabian Peninsula and Israel, IMEC focuses on three main areas: transport, digital infrastructure, and energy.
Seen as a strategic counter to China's Belt and Road Initiative, IMEC builds on existing infrastructure to boost regional connectivity. For Gulf countries, it aligns with long-term development goals aimed at diversifying their economies beyond oil.
India is a strong supporter of the project, which promises to deepen trade and investment links. However, tensions in the Middle East, especially over potential links between Saudi Arabia and Israel, pose short-term obstacles.
Despite this, key elements of IMEC remain viable, and broader India-Gulf cooperation is expected to grow through focused projects in areas like energy, food security, and technology.
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India remains a key player in the Gulf. As of 2024, nine million non-resident Indians live in GCC countries, making up 25% of India's global expatriate population.
Remittances, cultural, and family ties remain a vital pillar of the relationship, supporting both economies and fostering mutual trust.
India's ability to maintain and strengthen its Gulf partnerships amid regional instability, global tensions, and evolving US policies highlights the growing maturity and strategic independence of its foreign policy.
Unlike China's largely transactional approach, India is increasingly seen as a long-term partner, with deepening institutional ties in defense, trade, and diaspora engagement that anchor it firmly within the region's social and economic landscape.
With inputs from agencies
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