How Gulf countries came closer to India under PM Modi's leadership, Italian institute's report tells the reason

Under PM Narendra Modi's regime, the Gulf countries have come closer to India and are an intrinsic part of India's new comprehensive neighborhood policy. This recent report is by Italy's Institute for International Political Studies or ISPI. According to it, ties between New Delhi and the Gulf nations have changed fundamentally since the assumption of office by PM Modi in 2014. The Gulf countries have now become a priority in India's foreign and security policy. According to a report by ISPI, India's influence among the countries in the Gulf is growing. Where earlier, the relations between India and the Gulf nations were concentrated on energy and trade, now there is enhancement by political cooperation, investment, defense, and security cooperation between the two sides. India is trying to attract investment from the Gulf countries and accelerate its economic growth rate. At the same time, India is trying to address its regional security challenges in the Arabian Sea and the Gulf and striving to enhance its influence and reach.

Within a few months into power, Prime Minister Narendra Modi visited the United Arab Emirates in 2015—the first UAE visit of any Indian Prime Minister in 34 years. On the other hand, PM Modi's visit to Bahrain in August 2019 was the first Bahrain visit of any Indian Prime Minister. Now, how close the relations between India and UAE have been during PM Modi's time can be assessed from just one fact: PM Modi has visited the UAE seven times since coming to power.

Some 88 lakh Indians live in the Gulf countries.

The Gulf Cooperation Council is the largest trading partner of India. During the financial year 2022-23, India's total trade with GCC alone amounted to 15.8 percent. The European Union stands second on the list, with India's trade at 11.6 percent. The United Arab Emirates is also one of India's major trading partners from among the Gulf nations. Investments from these Gulf countries have also risen very fast in India. India has emerged as a big market for Gulf countries. Saudi Arabia and the United Arab Emirates have a target to invest $100 billion and $75 billion, respectively, in India. The United Arab Emirates is the seventh largest foreign direct investor in India, and investments from the UAE have reached $15.3 billion in India.

Saudi Arabia had invested $3.2 billion till March 2022, and Qatar had invested $1.5 billion till last year. In August 2023, the Qatar Investment Authority announced a fresh investment of $1 billion in Reliance Retail Ventures. Initalk was held between February 2024 and Saudi Arabian oil company Saudi Aramco over an investment deal in Indian oil companies. In September 2023, Prime Minister Narendra Modi and Saudi Arabia's Crown Prince Mohammed bin Salman signed an agreement to form a joint task force for the Ratnagiri project. India is also part of the India-Middle East-Europe Economic Corridor. Fighting another challenge, India, with cooperation from the United Arab Emirates, has been strengthening anti-terrorism security cooperation that covers maritime security and naval collaboration as well. The ISPI said challenges for India have also risen within the Gulf countries. Particularly after the Israel-Hamas war, there have been constant attacks on international shipping routes, due to which India's economic development has also been dented. Also, China has constantly been expanding its influence in the Gulf countries. Hereafter, now during the third term of Modi's government, amid that period, geared-up efficiency to take bilateral ties with Gulf Nations to new frontiers will be tried on the part of the Government's behalf.