India’s West Asia Policy (UPSC International Relations)

India's relationship with West Asia — the Gulf Cooperation Council (GCC) states, Iran, Iraq, Israel, Egypt, and the wider Levant — has moved from a transactional oil-buyer relationship to a multi-layered strategic partnership. Trade with the GCC crossed USD 160 billion in FY24, the region hosts 9 million Indian expatriates sending home 40-50% of India's remittances, and Indian naval ships are now permanent fixtures in Gulf waters. The I2U2 grouping with Israel, US and UAE, and the India-Middle East-Europe Economic Corridor (IMEC) announced at the G20 New Delhi Summit, mark a strategic leap. For UPSC GS II, this file tests bilateral and regional groupings, energy security, and diaspora diplomacy.

Pillars of the current policy

1. Expanding trade

• UAE: Bilateral trade USD 83.6 billion in FY24; CEPA signed February 2022.
• Saudi Arabia: USD 43 billion (FY24); Strategic Partnership Council (SPC) from 2019.
• Iraq: One of India's top crude suppliers.
• Israel: USD 10.7 billion; FTA under negotiation.
• Egypt: Trade growing; defence deals advancing.

2. CEPA with UAE

Signed February 2022, operational since May 2022:

• Eliminates tariffs on 80% of goods initially, 90%+ over 10 years.
• Local currency settlement operationalised (2023).
• UAE's domestic RuPay card rolled out.
• Target: USD 100 billion non-oil trade by 2030.

3. Strategic Partnership Council with Saudi Arabia

• Two pillars — Political, Security, Social and Cultural Cooperation Committee and Economy and Investments Committee.
• First SPC Summit held September 2023.
• Target: USD 100 billion Saudi investments in India.

4. Energy diversification

• The Gulf still supplies roughly 50% of India's crude and 70% of India's LNG.
• Russian crude imports surged post-2022 — share at times above 40%.
• US crude share rising.
• Saudi Arabia remains third-largest supplier in FY24 (16.7% share).
• West Coast Refinery and Petrochemicals Project (Maharashtra) — trilateral USD 44 billion Aramco-ADNOC-Indian consortium.

5. Renewable energy partnerships

• UAE's Energy Strategy 2050 and India's solar missions converge.
• Israel is a partner in water tech and drip irrigation.
• Green hydrogen MoUs with UAE and Saudi Arabia.

6. Maritime security

• India-led Combined Maritime Forces engagement.
• Duqm port, Oman — India's logistical access agreement.
• Trilateral exercises India-France-UAE (Desert Knight); India-Saudi Al-Mohed Al-Hindi.
• Red Sea Operation Sankalp — 12 Indian Navy ships deployed against Houthi attacks.
• Naval exercises with Oman, Qatar, Saudi Arabia, Kuwait, UAE.

7. Defence diplomacy

• Desert Cyclone with UAE; Sada Tanseeq with Saudi Arabia.
• Egypt interested in Tejas LCA and BrahMos.
• UAE buying Indian defence platforms.
• Rafale spares and Scorpene maintenance links.

8. Diplomacy at the top

• PM Modi's personal diplomacy has been pivotal — multiple visits to UAE, Saudi Arabia, Israel, Egypt, Jordan.
• Abu Dhabi BAPS Mandir inauguration (Feb 2024) was a soft-power high.

9. Diaspora diplomacy

• 9 million+ Indian expatriates across the Gulf.
• USD 125 billion in remittances from the region in 2023 — about 40-50% of India's total.
• Welfare schemes, labour MoUs, "e-migrate" platform.

10. Multilateral engagement

• GCC FTA negotiations reopened.
• I2U2 (India-Israel-UAE-US) — food security, water, renewables, space.
• IMEC — G20 New Delhi launch; rail-shipping corridor via UAE, Saudi Arabia, Jordan, Israel to Europe.

Key groupings India engages

Challenges

Iran-Israel tension

India balances close ties with both — Chabahar with Iran, defence and tech with Israel. Episodic Iran-Israel crises (2024) test India's posture.

Israel-Hamas conflict

• War since October 2023 has killed over 45,000 Palestinians.
• India condemned the 7 October attack but calls for a two-state solution and humanitarian aid.
• UN votes reflect multi-alignment — abstained on some, supported others.
• Paused parts of IMEC through the Israel-Jordan leg.

Red Sea crisis

Houthi attacks on Bab el-Mandeb shipping since late 2023 redirected Europe-bound cargo via the Cape and via INSTC. Indian Navy's Operation Sankalp / Prosperity Guardian coordination restored some shipping safety.

Syria-Iraq instability

ISIS remnants; Kurdish question; Iran-proxy networks across Lebanon, Syria, Iraq, Yemen.

Turkey's role

Turkish support for Pakistan on Kashmir; engagement with Maldives and South Asia — a new irritant.

Sanctions risk

Engaging Iran while navigating US sanctions remains a tightrope.

Latest developments (2024-26)

• IMEC launch (G20 New Delhi, September 2023); paused during Israel-Hamas war; revived in parts by 2025.
• BAPS Mandir, Abu Dhabi (February 2024) — diplomatic high point.
• Chabahar 10-year agreement with Iran (May 2024).
• Saudi Crown Prince MBS visit to India (September 2023) for SPC Summit.
• UAE-India Bilateral Investment Treaty (February 2024) updated.
• BRICS expansion (2024) — UAE, Egypt, Iran joined; reshapes West Asia's global positioning.
• Red Sea crisis and Operation Sankalp — 12+ Indian Navy deployments.
• Israel-Hamas war — India provided humanitarian aid to Gaza.
• Russia-Ukraine update — Gulf states mediated grain deals; oil market volatile.
• AI Action Summit Paris (2025) — India-UAE-Saudi AI cooperation highlighted.
• Operation Sindhu Thakur / Operation Ajay — Indian evacuations from Israel (2023) and West Asia executed.
• GCC FTA negotiations resumed mid-2024.
• Trump 2.0 (2025) — Abraham Accords expansion push benefits I2U2 ecosystem.

Recommendations

1. Finalise the GCC FTA to anchor economic framework.
2. Accelerate IMEC — even partial legs until Gaza stabilises.
3. Diversify defence exports — Tejas, BrahMos, Akash to regional partners.
4. Renewable energy co-financing — green hydrogen corridor via UAE.
5. Maintain Chabahar — Iran strategy without sacrificing Arab ties.
6. Diaspora welfare — e-migrate modernisation, grievance redressal.
7. Balance Israel-Palestine position consistently.

West Asia trade with India (FY24)

Hydrocarbons dominate; non-oil trade rising under CEPA with UAE.

West Asia: the big picture

India's West Asia engagement has moved through four phases:

1. Nehruvian solidarity — Non-Aligned Movement, pro-Arab tilt, Palestine support.
2. Pragmatic rebalancing (1990s) — diplomatic relations with Israel (1992), liberalisation-era outreach to Saudi Arabia and UAE.
3. Look West (2010s) — Manmohan Singh's regional engagement; Saudi Riyadh Declaration 2010.
4. Strategic partnership era (2014-) — MBS and MBZ personal chemistry with Modi; I2U2; IMEC; Abraham Accords adjacency.

I2U2 deliverables

The I2U2 grouping (India, Israel, UAE, US), launched 2022, has produced:

• USD 2 billion integrated food park in Gujarat with UAE investment.
• 300 MW hybrid renewable project in Gujarat with US finance.
• Space cooperation — joint satellite applications for agriculture and water.
• Maritime security workstream.
• Health — vaccine cooperation.

IMEC structure

The India-Middle East-Europe Economic Corridor, announced at G20 New Delhi (2023), consists of:

• Eastern Corridor — India to UAE (sea).
• Northern Corridor — UAE through Saudi Arabia, Jordan, Israel, to Europe (rail + shipping).
• Cable, pipeline, hydrogen components integrated.

Estimated to reduce trade costs by 40% and transit time by 40% compared with Suez. Progress paused by the Israel-Hamas war; MOU formal; UAE-Saudi segments advancing.

Gulf diaspora facts

Remittances from Gulf account for roughly 50% of India's total inflow of USD 125 billion (2023), the world's highest.

UPSC Relevance

India's West Asia policy is a GS II perennial — bilateral, regional and global groupings. Prelims has asked about I2U2, IMEC, Chabahar, GCC membership. Mains prompts rotate between energy diversification, diaspora, and the Israel-Iran balancing act.

Practice question (Mains): Examine the transformation of India's West Asia policy from an energy-import framework to a comprehensive strategic engagement. (250 words)