How the Gulf became integral part of India's 'extended neighbourhood' under PM Modi

NEW DELHI: Under Prime Minister Narendra Modi's leadership, the Gulf region has emerged as a crucial strategic partner for India, becoming an integral part of its 'extended neighbourhood', as per a report by the Italian Institute for International Political Studies (ISPI).
The report highlights the transformation of India's relationship with the Gulf states since PM Modi took office in 2014, with the Gulf becoming a foreign and security policy priority for India.
Previously, the relationship between India and the Gulf states was primarily focused on energy, trade, and Indian expatriates. However, it has now evolved into a new framework that encompasses political relations, investment, and defence and security cooperation. India's priorities in the region include attracting investments to boost economic growth, addressing regional security concerns, and enhancing its regional presence and influence.
The report emphasises the significance of Prime Minister Modi's visits to the Gulf states, including his historic visits to the UAE in 2015 and Bahrain in 2019. India has a substantial stake in Gulf stability, with approximately 8.8 million Indian nationals residing in the region. The Gulf Cooperation Council (GCC) is India's largest regional bloc trading partner, with trade comprising 15.8 per cent of India's total trade in FY2022-23.
The ISPI report highlights the potential gains for India by broadening its relations with the Gulf. However, it also acknowledges the challenges India faces in developing political and economic ties due to the deteriorating security environment in the Middle East. The outbreak of conflicts and shipping attacks in the region have directly impacted India's energy security and economic growth.
India's engagement with the I2U2 grouping and the India-Middle East-Europe economic corridor (IMEC) has further enhanced its ties with the Gulf region. The personal relations between Prime Minister Modi and Gulf leaders have deepened India's political relationships with those countries, building trust and fostering cooperation on sensitive issues.
The increased Gulf investments in India have further strengthened economic cooperation between India and the Gulf. Saudi Arabia and the UAE have announced significant investment targets in India, with the UAE being the seventh-largest source of foreign direct investment (FDI) in India. Additionally, Qatar and Saudi Arabia have also made substantial investments in various Indian ventures.