New Delhi: External Affairs Minister S. Jaishankar is currently in Riyadh, the capital of Saudi Arabia, where he is attending the Gulf Cooperation Council (GCC) meeting. During this visit, Jaishankar will hold bilateral talks with the foreign ministers of the GCC member countries. Around 8.9 million Indians live in Saudi Arabia, and India and the GCC countries have deep and multifaceted ties in key areas such as politics, energy, and trade.

What is the Gulf Cooperation Council (GCC)

The GCC is a regional organization formed by Saudi Arabia, the United Arab Emirates (UAE), Qatar, Kuwait, Oman, and Bahrain. It was formed in 1981 and is headquartered in Riyadh, Saudi Arabia. The GCC aims to promote integration, coordination, and cooperation among member countries, as well as scientific and technological innovations in the agricultural sector.

Economic Relations between India and GCC

The GCC is among India's major trading partners. In FY 2022-23, 15.8% of India's total trade was with GCC countries. In 2023-24, trade between India and the GCC is projected to reach $161.59 billion, up from $87.35 billion in 2020-21.

GCC member states such as the UAE and Saudi Arabia are major trading partners of India. The UAE has invested $15.3 billion in India, while Saudi Arabia and Qatar have contributed $3.2 billion and $1.5 billion respectively.

Three reasons why GCC is important for India

1. Free trade agreement

In the year 2022, a proposal for a free trade agreement between India and GCC was passed, but it has not been completed yet due to differences among the member countries. If this agreement is implemented, it can play an important role in increasing bilateral trade and investment.

2. Energy cooperation

GCC countries, especially Saudi Arabia, UAE, and Qatar, have supplied India with crude oil and natural gas on a large scale. Under the recent $78 billion deal between Qatar and India, Qatar will export gas to India for the next 20 years. This energy cooperation is very important for India as GCC countries play a major role in the supply of crude oil.

3. Security cooperation

In recent years, India-GCC relations have expanded to include not just energy and trade, but also political and security dimensions. The strategic partnership between India and the GCC countries is growing stronger, including community defense cooperation and bilateral naval exercises. The UAE has become an important defense partner of India, and the security role of GCC member countries is important in maintaining regional balance.

India-GCC relations are not limited to economic cooperation but also have wider significance in the political, energy, and security spheres. Further strengthening of these ties will not only boost bilateral trade but will also contribute to regional stability and security.