Abstract

This paper examines the emerging India-Gulf countries bilateral economic relation which spread in various dimensions. To know the significance of this relation, the paper begins with highlighting historical background of trade relation over the five thousand years ago. The gulf region plays an important role in India’s trade, approx. 60 percent of oil trade of India imports from GCC states. As an emerging global power, India increased trade and investments in non- oil trade sectors which helps to boost strong relations. However, to secure energy and trade security, India looks west policy emphasized to expand political relation also. The paper attempts to trace and identify such impediments that impact on bilateral trade growth between them like China and Pakistan factor. Moreover, India maintains balanced political relations with GCC in various ways like soft diplomatic power, welfare of Indian migrant workers, expand of naval presence for energy and non-traditional security. Ultimately, the paper concludes that substantive relation requires to maintain both trade and political relations.

Keywords

India, Gulf Cooperation Council, trade relation, political relation, energy security