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India-Middle East - A New Dimension

June 12, 2017 | Expert Insights

Ambassador PS Raghavan had highlighted few important insights on the new dynamics of India-Middle East relations change. During the talk given by Ambassador Talmiz Ahmad centering on ‘Turmoil and Terror in West Asia. India is among the top 10 largest economies of the world and it is likely to become increasingly dependent on the Middle East for ‘energy security’. It has been paving a path that will eventually lead to its defined role in the region.

India’s Growing Oil Demand                                            

India has been dependent on the Middle East for oil. It has been India’s greatest exporter of natural gas and crude oil. Meeting the growing demand for energy is a major challenge confronting India now. In the 1990s, it imported 40% of crude oil from Middle East and the demand has grown over the years, it is estimated that by 2032, 90% of the India’s energy needs will be imported. 

Trade with the Gulf Cooperation Council (GCC) countries was $137.7 billion in 2014-2015 and it has grown from $5.5 billion in 2001. There is growing expectation among policymakers that India will eventually become a global strategic partner. 

India’s Strategy in the Middle East

Israel is one of India’s most important strategic partners and a major source of military hardware; relations are expected to flourish with the Prime Minister’s coming visit. There is a huge Diaspora of Indians in the Middle East; more than 7 million Indians are working in the Persian Gulf. The United Arab Emirates (UAE) is one of the largest trading partners for India. UAE has committed to invest US $ 1 trillion in the next five years on Indian infrastructure.

Beyond Energy Security…

A question was asked to ambassador Raghavan, “In what way would the dynamics of India-Middle East relations change, if we were not dependent on the region for energy security (oil)?”

Mr. P.S Raghavan who is currently the convener at the National Security Advisory Board and former Indian Ambassador, said, “We should not look at West Asia from an energy perspective alone. The Middle East region is tied up to India in many other ways- culture, religion and our people are working there. So energy is only one of the components of our relation with the region. We should not look upon them as energy dependency because we buy from them so we contribute to their economies as well. It is a ‘synergetic relationship’ we share; we have cultural affinity to the region as well because of the Indian diaspora. We have been influenced by religion and language for a long time now. We share a long relation with the West Asian people.”