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LECTURE-8 INDIA AND WEST ASIA

Contents

1. India and West Asia 133

1.1. West Asia 133

1.2. India’s Focus In West Asia 133

1.3. India And West Asia: A Background 133

1.4. The GCC 135

1.5. India-GCC Relations: Key Aspects 136

1.6. Basis of Expanding Cooperation 136

1.6.1. Energy Security 137

1.6.2. People to People Ties 137

1.6.3. Economic Ties 137

1.6.4. Security Ties 137

2. India-Saudi Arabia 138

2.1. Background 138

2.2. Economy 138

2.3. The People 138

2.4. Security 139

3. India-UAE 139

3.1. Background 139

3.2. Recent Momentum 140

3.3. Economy: Trade and Investment 140

3.4. The People 140

3.5. Energy 141

3.6. Strategic Partnership 141

3.7. Key areas to Work on 141

4. India-Iran 141

4.1. Background 141

4.2. Recent Momentum 142

4.3. The Chabahar Port 142

4.4. Economy: Energy Trade 143

4.5. Iran: New Opportunities? 143

4.6. Challenges 144

4.7. Potential: Way Forward 145

5. India-Israel 145

5.1. Background 145

5.2. Defence and Security 145

5.3. People 146

5.4. Trade 146

5.5. Agriculture 146

5.6. Recent Momentum: The Visits of Prime Minsters 146

5.7. Way Forward 147

6. India-Palestine 147

6.1. The Palestinian Issue 147

6.2. India’s Position 148

6.3. Financial Assistance 149

6.4. Recent developments and the Future: De-Hyphenation 149

6.4.1. Two-State Solution 150

7. India’s Look West Policy: An Evolving Framework 150

 

1. India and West Asia1.1. West Asia1.2. India’s Focus In West Asia♤ The region is significant for India’s energy security, people to people ties, trade and1.4. The GCCo Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman.Cooperation Council for the Arab States of the Gulf♤ At a GCC summit in December 2009, an agreement was reached to launch a single regional currency similar to the euro. This agreement remains unimplemented yet.leading trade partner.1.6. Basis of Expanding Cooperation♤ Since then in particular Saudi Arabia and the U.A.E. have provided excellent and expanding anti-terrorism cooperation by repatriating those India wanted for terrorist activity .♤ The Gulf Arab states 85 percent of its natural gas requirements♤ India has signed Labour Agreements with multiple GCC countries including Saudi Arabia and the UAE.domestic investment and infrastructural development.1.6.4. Security Ties2. India-Saudi Arabia2.1. Background2.2. Economy♤ Saudi Arabia today is India’s 4th largest trade partner (after China, USA and UAE) and♤ Saudi Arabia is the 8th largest market in the world for Indian exports and is destination to more than 1.86% (2016-17) of India’s global exports. On the other hand, Saudi Arabia is the source of 5.19% (2016-17) of India’s global imports.2.3. The People♤ Agreement on Labour Cooperation for Domestic Service Workers Recruitment, was signed in 2014.♤ However, full implementation of the policy has implications for Indians in Saudi Arabia. Thus:2.4. Security3. India-UAE3.1. Background3.2. Recent Momentum♤ The visit Prime Minister of India to UAE on 16-17 August 2015 marked the beginning of a new comprehensive and strategic partnership.3.3. Economy: Trade and Investment3.4. The People♤ UAE is home to 2.8 million Indian expatriates, the largest expatriate community in the UAE.♤ The annual remittances made by the large Indian community in UAE amount to over US$♤ In 2018 India and the UAE signed an MoU that aims to institutionalize the collaborative administration of contractual employment of Indian workers in the Gulf country.3.5. Energy♤ The UAE accounts for 8 percent of India’s oil imports.agreed to store crude oil in India’s strategic storage facility at Manglore.3.6. Strategic Partnership♤ India and UAE see each other as important players in maintaining peace and stability in their respective regions and have reinforced their partnership in countering terrorism, combating radicalization and preventing terror finance through intelligence sharing and close contacts between their National Security Councils.3.7. Key areas to Work on♤ UAE also has the large sovereign wealth fund that India IS looking for investments. There is an agreement that UAE will invest nearly $75 billion in India over the next few years♤ Thus, connectivity, commerce, culture, and energy are key pillars of India Iran relation in the current context.♤ President Mohammad Khatami visited India from January 24-28, 2003 as the Chief Guest at the Republic Day parade. Both sides signed “The New Delhi Declaration” which set forth the vision of strategic partnership between India and Iran.♤ Chabahar Port was inaugurated by the President of the Islamic Republic of Iran H.E. Mr Hassan Rouhani on December 3 in the presence of Ministers from India, Afghanistan and the region.4.4. Economy: Energy Trade♤ India is the second largest buyer of Iranian crude after China and Iran was the third largest supplier of crude to India (April-Sep 2016).4.5. Iran: New Opportunities?♤ Much of this potential was subdued by the international sanctions trgeted at Iran’s♤ The Iran-Pakistan-India (IPI) gas pipeline project: In 1993, Pakistan and Iran announced a plan to build a gas pipeline, which Iran later proposed extending into India. Dubbed the "peace pipeline“.♤ Recently, Iran has signed an initial pact with Russia's Gazprom for developing Farzad B, discovered by ONGC. France’s oil major Total and the China National Petroleum Corporation have already signed agreement for South Pars, Phase 11♤ Embargoes on the sales and exports of conventional weapons and ballistic missile♤ The Chinese are building a refinery in Chabahar Free Trade Zone, and Iran has also joined5. India-Israel5.1. Background♤ Prime Minister Narendra Modi’s visit in 2017, marked the first such visit from India at the5.2. Defence and Security♤ In February 2014, India and Israel signed three important agreements on:5.3. People♤ There are about 12,500 Indian citizens in Israel, of whom around 11,500 are care-givers. Others are diamond traders, some IT professionals, and students.5.4. Trade5.5. Agriculture♤ India and Israel have a bilateral agreement for cooperation in agriculture. The bilateral action plan for 2015-18 is currently operational.5.6. Recent Momentum: The Visits of Prime Minsters♤ MoU on Cooperation in the Oil and Gas sector was signed.5.7. Way Forward6. India-Palestine6.1. The Palestinian Issue♤ The war resulted in the West Bank including east Jerusalem going to Jordan and the Gaza Strip to Egypt. Israel ended up occupying more territory than the resolution 181 had visualized.♤ The Oslo Peace process broke down in 1999-2000. This was followed by a violent second intifada and Israeli response to it♤ The last Israeli forces left Gaza after a 38-year occupation in September 2005.♤ Thus, the Palestinians remain stateless and the territory which is expected to become a future state of Palestine, i.e. West Bank and Gaze Strip remain separated and under Israeli occupation (West Bank) or blockaded (Gaza strip).♤ In 1996, India opened its Representative Office to the Palestine Authority in Gaza, which later was shifted to Ramallah in 2003.♤ At the United Nations General Assembly on November 29, 2012 the status of Palestine was upgraded to a ‘non-member state’. India co-sponsored this resolution and voted in favour of it. India supported the Bandung Declaration on Palestine at Asian African Commemorative Conference in April 2015. India supported installation of Palestinian flag at UN premises along with other observer states, like the flags of member states, in September 2015.♤ In 2018, during the PMs visit a total of 50 million US$ was committed by India as assistance to Palestine.6.4. Recent developments and the Future: De-Hyphenation♤ The recent vote in the UN on the issue of Jerusalem is also consistent with India’s7. India’s Look West Policy: An Evolving Framework♤ Despite long historical ties, India’s links to the Gulf countries in the last few decades had come to be defined by the twin factors of energy imports and labour exports.♤ PM Modi had used the phrase “Link West” in earlier speeches as well, In May 2017, the Indian foreign ministry spokesperson promoted the policy further by referring to a “Go West” connectivity and outreach policy with West Asiao the desire of the US to cut down its global security role is timed with India’s♤ In this context the need there has been increased engagement with the region with that also needs to be taken further through:1. India and Central AsiaMap 9.1-Central Asia♤ The region is rich in diverse energy resources.1.2. India and Central Asia• India’s disconnect with Central Asia came with Partition and the loss of directo build closer political, security, economic and cultural relations.• Prime Minister Modi’s Visit to all the 5 Central Asian Republics in 2015 was a significant moment in these relations.♤ Tajikistan has set up a field hospital in Farkor at the border with Afghanistan to treat Northern Alliance fighters. India, it also has a “quietly functional” small base to aid the Afghan government, and helped service and repair Mi fighter planes.♤ India is not a part of the Lapis Lazuli corridor.♤ Issues of mutual concerns are :regional peace, connectivity and integration; reforms in the United Nations; and, combating terrorism.♤ Kazaksthan was one of the first countries with which India launched civil nuclear cooperation through a uranium purchase contract.1.2.4. India-Uzbekistan1.2.5. Ashgabat Agreement1.2.6. India-Kyrgyzstan1.3. The Connect Central Asia Policy♤ The policy calls for:o joint commercial ventures,1.4. Shanghai Cooperation Organisation♤ SCO was formulated in 1996 with five countries- Kazakhstan, Kyrgyzstan, Russia, China, Tajikistan.♤ Tashkent-based Regional Anti-Terrorism Structure (RATS) is the security apparatus of the SCO.and reach in Central Asia.♤ Likewise, participation in SCO’s counter-terror exercises and military drills could be beneficial to the Indian armed forces.♤ In addition, India may also have to either dilute its growing partnership with the West or engage in a delicate balancing act.1.5. What Should India Do?will gain full meaning only if Iran joins the grouping eventually.♤ India should rope in one or more SCO countries, preferably Uzbekistan and Kazakhstan, in1.6. The International North South Transport Corridor (INSTC)Map9.2-The INSTC♤ INSTC will not only help cut down on costs and time taken for transfer of goods from India to Russia and Europe via Iran but also provide an alternative connectivity initiative to countries in the Eurasian region.♤ It will be India’s second corridor after the Chabahar Port to access resource rich Central1. India and RussiaMap10.1-Russia1.1.2. Russia: Politics♤ The Russian republic was established immediately after the Russian Revolution of 1917 and became a union republic of USSSR in 1922.♤ In international politics, Russia is a key power with the permanent membership of the UN Security Council and a large nuclear arsenal.1.2.1. Special and Privileged Strategic PartnershipPartnership was elevated to the level of a “Special and Privileged Strategic Partnership.”1.2.3. Defence and Security Cooperation♤ India has longstanding and wide-ranging cooperation with Russia in the field of defence.1.2.4. Economic Relations♤ The Inter- Governmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC) is the apex G2G forum to review economic cooperation.♤ In December 2014, the leaders of the two countries set a target of US $ 30 billion bilateral trade by 2025.o operationalization of the ‘Green Corridor’ project between the two countries which1.2.4.2. Economic Relations: Investments1.2.5. Energy Cooperation1.2.5.1. Nuclear Energy1.2.6. Science and Technology1.2.6.2. Science and Technology: Other Areas1.2.7. Cultural Relations1.3.1. Way Forward