Significance of the GCC Countries in India’s Quest for Energy Security: Understanding the Trends and Challenges
Authors: - Pavan Chaurasia 
Published: January 2025

The Gulf region has grown in importance as a strategic partner of India under Prime Minister Narendra Modi. This was brought to light in February 2024 when Modi visited the United Arab Emirates (UAE) and Qatar on his second last trip prior to India’s national elections in April-May 2024. The Gulf is now a top focus for foreign and security policy under Modi, and it is a crucial component of India's “extended neighbourhood,” where New Delhi has growing influence and interests. One of India's most important trading partners these days is the GCC (Gulf Cooperation Council). Overtaking the European Union, the area accounted for 15.8 percent of India’s overall trade in FY 2022–2023. At the centre of this partnership are Saudi Arabia and the United Arab Emirates (UAE), India's third and fourth-largest commercial partners, respectively. Saudi Arabia and Qatar have donated $3.2 billion and $1.5 billion, respectively, to India, while the United Arab Emirates has already invested $15.3 billion. Even if these investments show a strong economic alliance, the GCC and India have yet to finalise their 2022 proposal for a Free Trade Agreement (FTA). This progress has been halted by bureaucratic delays and differences among GCC member states. However, such a deal would be a significant step towards boosting bilateral trade and investment, especially as India looks to establish itself as a hub for investment and manufacturing in the face of changing global supply chains. The strategic alliance between India and the GCC nations is examined in this essay.
India’s four-pronged energy security strategy-diversifying energy supplies, expanding India's exploration and production footprint, increasing the use of alternative energy sources, and addressing the energy transition through gas-based economies, green hydrogen, and electric vehicles-has helped the country navigate through the most difficult energy crisis the world has seen since the 1973 oil crisis. From 27 countries in 2006-07 to 39 in 2023-24, India expanded its crude oil supply base, adding new suppliers such as Columbia, Russia, Libya, Gabon, Equatorial Guinea, and others, while fortifying ties with nations like the US and Russia. However, the GCC countries continue to be India’s primary source of imports, accounting for over 65 percent of our total imports, despite India’s continuous efforts to diversify its economy and secure its growing energy needs from around the world. For this reason, energy plays a significant role in the relationship between India and the GCC countries. India’s steady availability to energy supply is essential to its fast economic expansion. India’s reliance on oil and hydrocarbon imports in general, which currently account for 37.5 percent of our total imports, would expand significantly in the future due to the country's growing use of fossil fuels, prompting it to look for more robust energy security. Thus, foreign diplomacy is an essential instrument for guaranteeing India’s energy security. As a result, energy security is now a key component of Indian foreign policy. This essay examines India’s energy security strategies, interests, and obstacles in the region. It also looks at how much India’s quest for energy security influences its policies in the Gulf. The role of the GCC nations in India’s pursuit of energy security is examined in this essay. The four literature reviews that form the basis of this paper are: an overview of India’s energy policy and Gulf region policy; the significance of energy cooperation with the GCC countries; India’s energy security challenges; and an assessment of the role of energy in India’s Gulf region policy.