The Gulf Cooperation Council (GCC) countries — UAE, Saudi Arabia, Oman, Kuwait, Qatar, and Bahrain — play a vital role in India’s energy security, trade, and strategic influence. Collectively, the GCC supplies over 60% of India’s crude oil and natural gas needs, making it indispensable for India’s energy stability. Notably, the UAE and Saudi Arabia are particularly significant, with both nations contributing more than 25% of India's oil imports.
With approximately 8.9 million Indians residing in the GCC, they represent one of the largest expatriate communities in the Gulf region. This diaspora significantly contributes to the Indian economy, sending back $123 billion in remittances during the 2023-24 fiscal year. The Gulf countries are crucial sources of these remittances, with the UAE alone accounting for 18% of the total. The presence of 3.5 million Indians in the UAE and 2.6 million in Saudi Arabia establishes these countries as major hubs of economic engagement.
In 2023, trade between India and the GCC nations reached around $154 billion, positioning the GCC as India’s second-largest trading partner, following the United States. The UAE has emerged as the largest Arab investor in India, ranking as the sixth-largest source of foreign direct investment (FDI) for 2023-24. New trade routes, including those announced during the G20 summit, aim to enhance trade connectivity from India to Europe via Gulf ports, further solidifying economic ties.
India has ramped up its defense cooperation with Gulf nations, engaging in joint military exercises and providing maritime support. The Indian Navy's deployment of over a dozen warships in the Arabian Sea and the Red Sea underscores India’s commitment to regional security, particularly in response to Houthi attacks on shipping in the Red Sea. The Navy's capabilities include two nuclear submarines (INS Arihant and INS Arighaat) and various surface combatants, which can assist GCC countries when called upon.
The India-GCC Joint Ministerial Meeting has established a Joint Action Plan for 2024-2028, emphasizing the expansion of cooperation in several sectors, including trade, investment, defense, energy, transportation, health, agriculture, and culture. This framework also focuses on counter-terrorism and regional stability, aligning with the shared security interests of India and the GCC.
Launched during the G20 meeting in New Delhi in 2023, the India-Middle East-Europe Economic Corridor is a strategic initiative designed to connect India to Europe through Gulf states, with the participation of the US, Saudi Arabia, and the UAE as key stakeholders. This route is viewed as a potential alternative to China’s Belt and Road Initiative, aiming to improve connectivity and reduce transportation times, thus promoting economic growth across the regions.
Prime Minister Modi’s initiatives, including a record seven visits to the UAE, have significantly solidified political ties. Both the UAE and Saudi Arabia have supported India in various global forums, including its pursuit of a permanent seat at the United Nations Security Council, which reflects the strengthening diplomatic alliance.
Beyond remittances, Gulf nations are actively investing in India's infrastructure, technology, and renewable energy sectors. The UAE, as a major investor, has expressed keen interest in India's digital economy and green energy projects, with plans to contribute billions towards solar power, e-commerce, and initiatives aligned with India’s renewable energy targets.
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