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India's foreign policy has undergone a strategic shift towards West Asia, driven by imperatives of energy security, economic integration, and geopolitical balance.

The launch of theIndia-Middle East-Europe Economic Corridor (IMEC)at the G20 Summit 2023 marks a key initiative aimed at reshaping global trade while deepening India’s engagement with the Middle East and Europe.

Importance of the Middle East for India

• Energy Security:The Middle East supplies over 53% of India’s crude oil (as of January 2025). Long-term energy agreements, such as the LNG deal with Qatar (until 2048) and India-UAE green hydrogen MoUs, ensure stable energy flows. Strategic ties mitigate disruptions due to OPEC+ cuts and geopolitical tensions.
• Trade and Economic Ties: India’s trade with the Gulf Cooperation Council (GCC) reached USD 161.59 billion in FY 2023–24. The UAE is India’s third-largest trading partner, with exports worth USD 35.6 billion. A proposed India-GCC Free Trade Agreement and operationalization of IMEC can enhance regional integration.
• Diaspora and Remittances:Over 66% of India’s 1.34 crore NRIs live in Gulf nations. India was the world’s top remittance recipient in 2022, with USD 111 billion, a major share from the Middle East. Labor reforms in the region (e.g., Saudi Arabia’s Nitaqat) influence migrant welfare.
• Geopolitical and Strategic Autonomy: India balances relations across regional fault lines — Iran-Saudi and Israel-Arab states — while maintaining strategic autonomy. Defense cooperation includes naval exercises (e.g., Al-Mohed Al-Hindi with Saudi Arabia) and connectivity via Chabahar Port in Iran.
• Food and Maritime Security: The Gulf is a major destination for Indian agricultural exports (e.g., UAE imports worth USD 1.9 billion in FY 2022–23). Strategic waterways like the Red Sea and Arabian Sea are crucial for trade, though increasingly vulnerable to piracy and regional conflict.

IMEC: A Strategic Connectivity Corridor

• IMECenvisions linking India to Europe through the Middle East via multimodal transport and digital-energy corridors, bypassing the Suez Canal. It aims to counter China’s Belt and Road Initiative (BRI).
• Key stakeholders include India, UAE, Saudi Arabia, Jordan, Israel, and the EU. The Intergovernmental Framework Agreement (2024) lays the foundation for implementation, targeting USD 600 billion in infrastructure investment by 2027.
• Objectives include trade facilitation, supply chain diversification, digital connectivity, and green energy collaboration. However, the Israel-Gaza conflict and regional instability have delayed execution.

Challenges

• Energy volatility due to OPEC+ decisions and Red Sea disruptions.
• Geopolitical unrest in Yemen, Gaza, and Iran-Israel tensions.
• Maritime insecurity, with piracy and Houthi attacks raising shipping costs.
• Labor rights issues, including migrant exploitation.
• Strategic competition from China, with over USD 273 billion invested in the region since 2005.

Policy Recommendations

• Co-develop energy infrastructure (e.g., Saudi Aramco’s stake in Indian refineries).
• Diversify trade via an India-GCC FTA and sectoral cooperation (IT, defense, fintech).
• Enhance maritime and digital connectivity through IMEC and joint port development.
• Secure labor migration with skill pacts and expanded protection schemes.
• Strengthen counter-terrorism and defense cooperation, including intelligence sharing.

Conclusion

India’s West Asia strategy is multifaceted—balancing energy diplomacy, trade, diaspora ties, and strategic connectivity. IMEC offers a transformative opportunity to position India as a central link in global supply chains, but its success depends on stable regional geopolitics and coordinated implementation.