- The article discusses India’s evolving strategy towards the Middle East, focusing on economic corridors, energy security, trade, and geopolitical dynamics.
India-Middle East-Europe Economic Corridor (IMEC)
- Launch: Announced at the G-20 Summit 2023.
- Significance: Aims to enhance India’s strategic influence in West Asia and reshape global supply chains.
- Challenges: Progress has been hindered by the ongoing Israel-Gaza conflict.
Importance of the Middle East for India
Energy Security and Economic Stability
- Crude Oil Imports: Increased from 51% in December 2024 to 53.89% in January 2025.
- Key Agreements:
- MoU with UAE for green hydrogen development.
- Extended LNG deal with Qatar until 2048 (7.5 million tonnes per annum).
Trade and Investment
- Bilateral Trade: India-GCC trade reached USD 161.59 billion in FY 2023-24.
- UAE: India’s third-largest trading partner and second-largest export destination, with exports over USD 35.62 billion.
Remittances
- Over 66% of India’s NRIs reside in the Gulf.
- India received $111 billion in remittances in 2022, the highest globally.
Geopolitical Cooperation
- Balanced diplomacy between rival blocs (Saudi Arabia-Iran, Israel-Arab nations).
- Defense cooperation includes joint military exercises and exports.
Key Issues in India-Middle East Relations
Energy Price Volatility
- Vulnerability to price fluctuations due to reliance on Middle Eastern oil.
- OPEC+ production cuts have raised global oil prices.
Geopolitical Instability
- Conflicts (e.g., Israel-Palestine, Yemen) complicate diplomatic relations.
- India’s response includes Operation Ajay for evacuating citizens.
Trade Barriers
- Lack of a Free Trade Agreement (FTA) with GCC limits economic potential.
- Regulatory issues and slow progress in FTA negotiations.
Maritime Security
- Rising threats in the Red Sea, Persian Gulf, and Arabian Sea affecting trade routes.
Labor Rights
- Workforce issues include job losses and labor exploitation in Gulf countries.
- India negotiates for better labor rights and safety.
Role of Infrastructure Projects
- Geopolitical Leverage: Infrastructure projects enhance India’s influence and trade connectivity.
- Energy Security: Projects like TAPI gas pipeline and ports in the Middle East secure energy interests.
Recommendations for Enhancing Relations
- Energy Partnerships: Shift towards co-investing in energy infrastructure.
- Trade Diversification: Expand trade beyond oil to include manufacturing and technology.
- Defense Cooperation: Collaborate on joint defense production and security frameworks.
- Digital Investment: Encourage Middle Eastern funds to invest in India’s tech sectors.
- Maritime Infrastructure: Develop port infrastructure to strengthen trade routes.
Way Forward
- India’s relationship with the Middle East has evolved into a multi-dimensional partnership, focusing on trade, strategic cooperation, and cultural ties. To maximize potential, India needs to enhance infrastructure, finalize trade agreements, and deepen security collaboration.