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Modi-Era Diplomacy: Bridging India-West Asia Relations
Context:
External Affairs Minister S. Jaishankar’s visit to Riyadh for the inaugural India-GCC Foreign Ministers’ Meeting on September 8-9, 2024, aims to enhance cooperation in political, trade, energy, and security amidst ongoing regional conflicts like the Hamas-Israel situation.
Evolution of India’s West Asia Policy:
- Transition from “Link West” to “Act West”: India shifted from a transactional to a strategic approach in West Asia under PM Modi, enhancing high-level exchanges and partnerships.
- Strategic Partnerships with GCC: Frequent visits by PM Modi to countries like UAE, Saudi Arabia, and Oman have resulted in strong strategic alliances, moving beyond traditional ties.
Bilateral Relations and De-Hyphenation:
- Neutralising the ‘Pakistan Factor’: India’s policy of de-hyphenating relationships from Pakistan has led to individual, robust ties with West Asian countries.
- Balanced Diplomacy: India supports Palestine’s independence while maintaining close relations with Israel, managing complex regional dynamics.
India’s 3Es and 3Ms Approach:
- 3Es: Focus on Energy Security, Economy/Trade, and Expatriates’ Welfare (9 million Indians in the region).
- 3Ms: Importance of Maritime Security, Multipolarity, and Mutual Respect for fostering deeper cooperation.
Successes and Engagements:
- India’s G20 Presidency: West Asian nations like the UAE, Oman, and Egypt were special invitees during India’s G20 Presidency, with Saudi Arabia already a member.
- Balanced Foreign Policy: India maintained strategic relations with both Israel and Palestine, as well as Iran and Israel, balancing the Shia-Sunni divide while supporting peace and dialogue.
- Global Expectations from India: India’s rising stature as a benign power has positioned it as a mediator in conflicts like Russia-Ukraine and Israel-Gaza, with both sides valuing India’s objective assessments.
Key Economic and Energy Partnerships:
- GCC as Major Trade Partner: In FY 2022-23, GCC accounted for 15.8% of India’s total trade. UAE and Saudi Arabia are India’s 3rd and 4th largest trading partners.
- Energy Cooperation: Over half of India’s crude oil comes from the Gulf region. A $78 billion deal with Qatar highlights the region’s long-term significance for Indian energy.
- Bilateral Currency Trade: India, the UAE, and other countries are exploring trade in bilateral currencies, reflecting a shift towards de-dollarisation in international trade.
Strategic and Security Cooperation:
- Security and Defence Ties: India has expanded defence cooperation with GCC countries, conducting joint naval exercises and fostering strategic partnerships with UAE, Qatar, and Saudi Arabia.
- Maritime Security: India’s naval presence in the Gulf of Aden and Red Sea is crucial to protecting sea lanes and ensuring regional stability.
Diplomatic Initiatives and Regional Groupings:
- India-GCC Free Trade Agreement (FTA): Ongoing efforts to finalise an FTA with the GCC have faced bureaucratic delays, but the Comprehensive Economic Partnership Agreement (CEPA) with the UAE serves as a model.
- I2U2 and IMEEC: India has joined key regional initiatives like the I2U2 Grouping (India, Israel, UAE, US) and signed the India-Middle East-Europe Economic Corridor (IMEEC) Agreement, involving UAE, Saudi Arabia, Jordan, and Israel.
- IUSU Grouping: Another alliance with the US and Saudi Arabia has paved the way for regional cooperation and infrastructure development under the IMEEC initiative.
- BRICS Expansion: The UAE, Saudi Arabia, Egypt, and Iran have joined BRICS, opening new avenues for cooperation and strengthening ties with India.
Challenges Amid West Asia Turmoil:
- Hamas-Israel Conflict: The ongoing conflict in Israel and Gaza complicates India’s diplomatic efforts and poses risks to regional stability and energy security.
- FTA Delays: Differences among GCC members have slowed FTA negotiations, but progress is expected.
- Impact on Strategic Initiatives: The Hamas-Israel war has delayed initiatives like IMEEC, posing challenges to India’s regional ambitions.