INDIA–GULF COOPERATION COUNCIL (GCC) SUMMIT

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Context:

India and the Gulf Cooperation Council (GCC) adopted a Joint Action Plan 2024-2028 at their first Foreign Ministers' meeting.

Details

• India and the Gulf Cooperation Council have signed a Joint Action Plan (2024-2028) to strengthen cooperation in a number of areas, including health, trade, security, agriculture, food security, energy, and culture.

Key Highlights of the Joint Action Plan

• The healthcare collaboration aims to enhance preparedness for future health crises by exchanging expertise, medical technology, and health research between the two regions.
• The GCC and India aim to boost mutual economic growth by streamlining trade routes and enhancing market access.
• The geopolitical significance of the region needs significant security cooperation, particularly in defence and counter-terrorism initiatives, to enhance regional stability.
• The increasing global food security concerns need collaboration in sustainable agriculture and food supply chains to maintain resilience to potential shortages.
• Strengthening energy links is mutually beneficial, given the Gulf's role as a major oil and gas provider.
  • India's move to renewable energy creates opportunities for new collaborations in clean energy technologies.

India-Gulf Cooperation Council (GCC) Relations

• In 2023-24, India-GCC bilateral trade stood at $161.59 billion.
  • The Joint Action Plan aims to boost the trade value by promoting free trade agreements (FTAs) and lowering trade obstacles.
  • For example, Oman is an important energy supplier to India, and a stronger FTA may expand this cooperation into the manufacturing and digital sectors.
• The Indian labour in the GCC, particularly in nations such as the UAE and Saudi Arabia, numbers millions.
  • India provides highly trained labour in industries like IT and healthcare.
  • In 2023, remittances from the Gulf contributed to about 40% of total remittances in India.
• GCC countries account for around 35% of India's oil imports and 70% of gas imports. However, both regions are moving to cleaner energy sources.
  • The recent agreement between India and Saudi Arabia to invest in renewable energy represents a significant step towards a shared sustainable future.

Challenges in India-Gulf Cooperation Council (GCC) Relations

• India's high dependency on the gulf for energy needs, accounting for 35% of its crude oil imports, exposes it to geopolitical tensions and fluctuations in oil prices.
• Geopolitical tensions in the gulf and middle east have the potential to severely damage bilateral relations and economic stability.
• Ensuring the welfare and rights of Indian workers in the GCC countries remains a concern.
• India imports more from the GCC than it exports.
• Differences in regulatory frameworks and business practices pose challenges for businesses.

Way Forward

• The increasing partnership with the Gulf Cooperation Council (GCC) provides opportunities for economic expansion through commerce, technological innovation, and collaborative energy projects.
• The India-GCC Joint Action Plan for 2024-2028 intends to strengthen the partnership via common interests and mutual respect.
• Trade and culture are two areas of cooperation to generate direct advantages for both regions. As their connection strengthens, India and the GCC are expected to support peace, stability, and prosperity in a multipolar world.

Must Read Articles:

Gulf Cooperation Council

Source:

Indian Express

Wikipedia

PRACTICE QUESTION Q. Consider the following countries: 1. Yemen 2. Kuwait 3.  Iraq 4. Qatar Which of the following countries are members of the Gulf Cooperation Council (GCC)? A) 1 and 3 only B) 2 and 4 only C) 1, 2, and 3 only D) 2, 3, and 4 only Answer: B Explanation: The GCC was founded in 1981, and its members are 6 countries from the Arabian Peninsula: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates (UAE).

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