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India’s relationship with the Gulf Cooperation Council (GCC) nations—comprising the UAE, Saudi Arabia, Qatar, Oman, Bahrain, and Kuwait—has evolved into a strategic partnership that extends beyond trade and energy. As global geopolitics shift, India is actively deepening its engagement with the region in areas such as defense, investment, and clean energy. With over 9 million Indian expatriates in the Gulf and an annual bilateral trade of over $180 billion, this relationship is crucial for India’s economic and strategic interests.
The Gulf has traditionally been India’s top supplier of oil and gas, but recent years have seen diversification into infrastructure, startups, and manufacturing. The Comprehensive Economic Partnership Agreement (CEPA) with the UAE, signed in 2022, aims to increase bilateral trade to $100 billion by 2030.
The UAE has also emerged as India’s third-largest trade partner and second-largest export destination. Saudi Arabia is India’s fourth-largest trading partner, and both countries have signed major investment deals, including Saudi Aramco’s stake in India’s energy sector and infrastructure projects under Saudi Vision 2030.
Meanwhile, India has renewed a long-term LNG supply agreement with Qatar, ensuring energy security amid volatile global markets. With the Gulf diversifying away from oil-based economies, India is seizing opportunities in technology, tourism, healthcare, and fintech.
A significant development is the renewed push for a free trade agreement (FTA) between India and the GCC, which was recently confirmed by GCC Secretary-General Jasem Mohamed Al-Budaiwi. The discussions, expected to begin in 2025, signal a move towards deeper economic integration, potentially boosting bilateral trade and investment across sectors.
India’s security engagement with the Gulf has deepened in response to regional challenges such as terrorism, maritime threats, and geopolitical instability. India has conducted joint naval exercises with Oman, UAE, and Saudi Arabia, enhancing maritime security in the Arabian Sea and the Indian Ocean.
Counterterrorism and intelligence-sharing efforts have also expanded as both regions face common threats such as cyber warfare and extremism. Additionally, India is positioning itself as a defense supplier to the Gulf, with deals in drones, surveillance systems, and military technology under the “Make in India” initiative.
Over 9 million Indians work in the Gulf, making them a vital link between the two regions. These workers send back remittances worth over $50 billion annually, playing a crucial role in India’s economy. However, labor reforms, economic restructuring, and increasing nationalisation policies in the Gulf pose challenges to Indian workers. In response, India has been actively negotiating better labor protections, social security agreements, and skill-based employment programs to safeguard its diaspora’s interests.
While the Gulf remains India’s primary source of crude oil and natural gas, both sides are collaborating on clean energy initiatives. India is exploring investments in green hydrogen, solar, and wind energy in the Gulf, aligning with its net-zero target by 2070. Joint ventures like Adani Group’s partnership with Abu Dhabi’s Masdar in solar power are set to boost India’s renewable energy capacity.
Additionally, India and the UAE have collaborated on strategic petroleum reserves, ensuring energy security amid global supply disruptions. Moreover, Abu Dhabi National Oil Company (ADNOC) has recently agreed to supply 2.5 million tons of liquefied natural gas (LNG) to Bharat Petroleum Corp over five years, starting in April 2025.
India has maintained a delicate balance in its Gulf relations, navigating multiple geopolitical shifts. China’s growing presence in the Gulf, marked by expanding investments and security ties, has prompted India to strengthen its own partnerships in the region.
At the same time, India has carefully managed its relations with both Washington and Gulf capitals amid ongoing US-Gulf tensions. The country has also taken a proactive role in emerging regional groupings such as the I2U2 bloc (India, Israel, UAE, US), signaling deeper economic and technological cooperation with the Gulf beyond traditional sectors.
A particularly ambitious goal in this evolving partnership is India and Qatar’s commitment to doubling their bilateral trade to $28 billion within the next five years. This is being explored alongside the broader FTA negotiations and represents a strategic move to strengthen India’s economic footprint in the Gulf.
India’s relationship with the Gulf is no longer just about oil and labor—it is evolving into a multi-faceted strategic partnership that includes trade, security, technology, and energy transition. As both regions undergo economic and geopolitical shifts, India’s ability to diversify ties, secure its diaspora, and collaborate on new technologies will define the next phase of this crucial partnership.
