Foreign Minister S. Jaishankar (S. Jaishankar) arrived in Riyadh, the capital of Saudi Arabia, on a two-day visit to attend the meeting of the Gulf Cooperation Council. Saudi Deputy Minister for Protocol Affairs Abdul Majeed Al Smari welcomed Jaishankar in Riyadh.
According to a press release issued by the Ministry of External Affairs, S. Jaishankar will hold bilateral meetings with the foreign ministers of the GCC member countries during his visit to Riyadh. Around 8.9 million Indians live in Saudi Arabia. The release said, “India and the GCC have deep and multidimensional relations in areas such as politics, energy cooperation, trade, etc.”
What is the Gulf Cooperation Council?
The Gulf Cooperation Council is a regional organization of six Gulf countries. Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Oman and Bahrain are the member countries of the GCC. Established in the year 1981, the headquarters of this organization is located in Riyadh, the capital of Saudi Arabia. The main objective of the organization is to promote integration, coordination and mutual cooperation among the member countries in all fields. Along with this, we have to revolutionize the agricultural sector by incorporating science and new technologies.
The GCC also wants to ensure the overall security of countries in the region, for which it is trying to create an integrated military force. It aims to promote the private sector through joint ventures and establish new scientific research centres.
India’s economic relations with GCC countries
The GCC has emerged as a major trading partner for India. In the financial year 2022-23, GCC countries accounted for 15.8% of India’s total trade. The total trade between India and GCC members in the year 2023-24 was $161.59 billion, which declined to $87.35 billion in the financial year 2020-21. According to government records, trade between GCC countries and India has been increasing year on year.
The UAE, a GCC country, is India’s third largest trading partner. Saudi Arabia is ranked fourth. The UAE has invested $15.3 billion in India, while Saudi Arabia has contributed $3.2 billion and Qatar has contributed $1.5 billion. The total economy of the GCC member countries is over Rs 1,638 trillion.
Why is the GCC important for India?
Free Trade Agreement: For the first time in 2022, a proposal for a Free Trade Agreement between India and the GCC was approved, but due to differences between the members, this ship is still stuck in the middle. If the member countries agree to this agreement in the future, it will be considered an important step towards increasing bilateral trade and investment.
Energy Corporation: Energy is the cornerstone of India-GCC relations. The Gulf countries supply more than half of India’s crude oil demand. Saudi Arabia, the UAE and Qatar supply crude oil and natural gas to India on a large scale. The recent $78 billion deal between Qatar and India indicates strong future trade between the two countries. Under this deal, Qatar will export gas to India for the next 20 years.
Security Corporation: In recent years, India-GCC relations have expanded beyond energy and trade to include political and security dimensions. India’s strategic partnership with Saudi Arabia, the UAE and Qatar is continuously strengthening. According to experts, the growing trust in personal relations between Prime Minister Narendra Modi and the leaders of the Gulf countries has also negatively affected this partnership.
In recent years, India has initiated bilateral naval exercises with the UAE, Qatar, Bahrain and Saudi Arabia. Moreover, the UAE has emerged as India’s most important regional defence partner. In such a situation, GCC members are very important from the perspective of regional balance and security.
