INTERNATIONAL RELATIONSHIP
9. WEST ASIA/MIDDLE EAST
India’s West Asia Policy
In post cold-war, India has largely balanced its approach to the three poles of influence in the region – Saudi Arabia, Israel, and
Iran – in a successful manner so that none of them has overtly criticised New Delhi for dealing with the others.
The reason behind this is India’s ‘Look West’ policy adopted in 2005.
Main features of the policy are
A Secular and Non- Aligned Policy: India’s policy towards the region will be shaped by its policy of nonalignment
in the context of the region’s religious and sectarian conflicts.
Diplomacy at various levels: Commitment to Diplomacy outlining closer government-to-government (G2G)relations
draws attention to the vibrant business-to-business (B2B) and people-to-people (P2P) relationships.
Move towards India’s Non-Ideological Policy: The seismic changes in the Middle East compelled India to revisit its
Middle East policy that had been anchored on Arab socialism, secularism and Soviet friendship. India not only had to
co-habit with US domination but also engage rising conservatism in the region. In practical terms this meant devising a
policy that was driven more by economic calculation than political rhetoric.
Major emphasis on Maritime Diplomacy: The seas surrounding West Asia have assumed a major emphasis in
Look West Policy due to energy and economic security they offer now for India.
SAUDI ARABIA
SIGNIFICANCE OF INDO - ARABIA RELATIONSHIP
Energy Security
Saudi Arabia is India’s second largest supplier of crude oil (~18% of the total import). India also sources
~32% of its LPG requirements from Saudi Arabia.
Recently, Saudi Arabian oil major ARAMCO(in partnership with ADNOC of UAE)has decided to
partner in Ratnagiri Refinery and Petro-Chemical Project in Maharashtra, a Joint Venture of US$ 44
billion billed as the world’s biggest. This means graduating from a purely oil buyer-seller relationship to
one of closer strategic partnership with the investment in downstream oil and gas projects in India.
Given India’s inability to buy oil from Iran as a result of the United States sanctions, this energy
relationship will continue to be vital
Bilateral Trade & Investment
Total bilateral trade is around $34 bn, in 2018-19. India is 4th largest trading partner of Saudi Arabia and
the 4th largest market for Saudi exports.
, Both countries have also signed Bilateral Investment Protection and Promotion Agreement and a Double
Taxation Avoidance Agreement in 2006.
Saudi Arabia had expressed intent to invest about $100 billion in India in sectors including petrochemicals,
infrastructure and mining. India is planning to invest $100 billion in oil and gas infrastructure by 2024 and
India is looking for investments from Saudi Arabia.
Saudi Arabia identified India as one of the Kingdom’s 8 Strategic Partner Countries under ‘Vision 2030’.
Saudi Vision 2030 is a plan to reduce Saudi Arabia’s dependence on oil and diversify its economy.
Socio cultural relations
Of the 11 million Indians working in West Asia, 2.6 million are in Saudi Arabia.
India is the largest recipient of foreign remittances (up to $11 bn annually) from the kingdom.
India Saudi Arabia signed agreement to launch the RuPay card in Saudi Arabia. It will benefit the
2.6 million Indians in the Gulf Kingdom and also Haj and Umrah pilgrims.
India has the world’s 3rd largest Muslim population (after Indonesia & Pakistan). Being the custodian
of the two of Islam’s holiest sites (Mecca & Medina), Saudi becomes important in India’s strategic calculus.
The Hajj Quota was increased by 24, 975 in 2019, enabling 2, 00, 000 Indians performing Hajj in 2019.
Around 7, 00, 000 Indians also visit the Kingdom to perform Umrah every year.
Strategic and security cooperation
The Delhi Declaration (2006) has laid a foundation of cooperation on terrorism while the Riyadh
Declaration (2010) has raised the level of partnership to strategic partnership and diversified the relations to
include space and energy cooperation.
Being one of the major investors, Saudi Arabia can force Pakistan to abandon its anti-India foreign policy.
For instance, in the aftermath of the suicide attack in Pulwama, Saudi Arabia and the United Arab Emirates
had also played a key role in reducing tensions between India and Pakistan.
Both countries are strengthening cooperation in counter-terrorism and intelligence-sharing, capacity
building and strengthening of cooperation in combating transnational crimes, through the framework of the
bilateral security cooperation.Riyadh also handover several terror suspects to India.
In recent visit,the two countries agreed on the importance of bilateral engagement to promote security and
safety of waterways in the Indian Ocean region and the Gulf region from the threat and dangers that may
affect the interests of the two countries.
India and Saudi Arabia will conduct their first-ever joint naval exercises in the first week of March year.
Global cooperation
India and Saudi Arabia been working together within the G20 to reduce inequality and promote sustainable
development.
Both sides cooperate in the United Nations Counter-Terrorism Center.
Challenges in India-Saudi Arabia Relations
Saudi – Pakistan relation: Pakistan is a “historical ally” of the Saudis. Saudi gains from mostly unbridled
military and political support from Islamabad and Rawalpindi, while the latter gains from financial infusions
into its economy emboldened by the common theological bridge between the two states.
Ideological support to terrorism: Saudi money has been accused of funding Wahhabi Islamic groups
9. WEST ASIA/MIDDLE EAST
India’s West Asia Policy
In post cold-war, India has largely balanced its approach to the three poles of influence in the region – Saudi Arabia, Israel, and
Iran – in a successful manner so that none of them has overtly criticised New Delhi for dealing with the others.
The reason behind this is India’s ‘Look West’ policy adopted in 2005.
Main features of the policy are
A Secular and Non- Aligned Policy: India’s policy towards the region will be shaped by its policy of nonalignment
in the context of the region’s religious and sectarian conflicts.
Diplomacy at various levels: Commitment to Diplomacy outlining closer government-to-government (G2G)relations
draws attention to the vibrant business-to-business (B2B) and people-to-people (P2P) relationships.
Move towards India’s Non-Ideological Policy: The seismic changes in the Middle East compelled India to revisit its
Middle East policy that had been anchored on Arab socialism, secularism and Soviet friendship. India not only had to
co-habit with US domination but also engage rising conservatism in the region. In practical terms this meant devising a
policy that was driven more by economic calculation than political rhetoric.
Major emphasis on Maritime Diplomacy: The seas surrounding West Asia have assumed a major emphasis in
Look West Policy due to energy and economic security they offer now for India.
SAUDI ARABIA
SIGNIFICANCE OF INDO - ARABIA RELATIONSHIP
Energy Security
Saudi Arabia is India’s second largest supplier of crude oil (~18% of the total import). India also sources
~32% of its LPG requirements from Saudi Arabia.
Recently, Saudi Arabian oil major ARAMCO(in partnership with ADNOC of UAE)has decided to
partner in Ratnagiri Refinery and Petro-Chemical Project in Maharashtra, a Joint Venture of US$ 44
billion billed as the world’s biggest. This means graduating from a purely oil buyer-seller relationship to
one of closer strategic partnership with the investment in downstream oil and gas projects in India.
Given India’s inability to buy oil from Iran as a result of the United States sanctions, this energy
relationship will continue to be vital
Bilateral Trade & Investment
Total bilateral trade is around $34 bn, in 2018-19. India is 4th largest trading partner of Saudi Arabia and
the 4th largest market for Saudi exports.
, Both countries have also signed Bilateral Investment Protection and Promotion Agreement and a Double
Taxation Avoidance Agreement in 2006.
Saudi Arabia had expressed intent to invest about $100 billion in India in sectors including petrochemicals,
infrastructure and mining. India is planning to invest $100 billion in oil and gas infrastructure by 2024 and
India is looking for investments from Saudi Arabia.
Saudi Arabia identified India as one of the Kingdom’s 8 Strategic Partner Countries under ‘Vision 2030’.
Saudi Vision 2030 is a plan to reduce Saudi Arabia’s dependence on oil and diversify its economy.
Socio cultural relations
Of the 11 million Indians working in West Asia, 2.6 million are in Saudi Arabia.
India is the largest recipient of foreign remittances (up to $11 bn annually) from the kingdom.
India Saudi Arabia signed agreement to launch the RuPay card in Saudi Arabia. It will benefit the
2.6 million Indians in the Gulf Kingdom and also Haj and Umrah pilgrims.
India has the world’s 3rd largest Muslim population (after Indonesia & Pakistan). Being the custodian
of the two of Islam’s holiest sites (Mecca & Medina), Saudi becomes important in India’s strategic calculus.
The Hajj Quota was increased by 24, 975 in 2019, enabling 2, 00, 000 Indians performing Hajj in 2019.
Around 7, 00, 000 Indians also visit the Kingdom to perform Umrah every year.
Strategic and security cooperation
The Delhi Declaration (2006) has laid a foundation of cooperation on terrorism while the Riyadh
Declaration (2010) has raised the level of partnership to strategic partnership and diversified the relations to
include space and energy cooperation.
Being one of the major investors, Saudi Arabia can force Pakistan to abandon its anti-India foreign policy.
For instance, in the aftermath of the suicide attack in Pulwama, Saudi Arabia and the United Arab Emirates
had also played a key role in reducing tensions between India and Pakistan.
Both countries are strengthening cooperation in counter-terrorism and intelligence-sharing, capacity
building and strengthening of cooperation in combating transnational crimes, through the framework of the
bilateral security cooperation.Riyadh also handover several terror suspects to India.
In recent visit,the two countries agreed on the importance of bilateral engagement to promote security and
safety of waterways in the Indian Ocean region and the Gulf region from the threat and dangers that may
affect the interests of the two countries.
India and Saudi Arabia will conduct their first-ever joint naval exercises in the first week of March year.
Global cooperation
India and Saudi Arabia been working together within the G20 to reduce inequality and promote sustainable
development.
Both sides cooperate in the United Nations Counter-Terrorism Center.
Challenges in India-Saudi Arabia Relations
Saudi – Pakistan relation: Pakistan is a “historical ally” of the Saudis. Saudi gains from mostly unbridled
military and political support from Islamabad and Rawalpindi, while the latter gains from financial infusions
into its economy emboldened by the common theological bridge between the two states.
Ideological support to terrorism: Saudi money has been accused of funding Wahhabi Islamic groups
