India’s relations with the UAE transcend our current State relationship – they are part of historical, cultural and civilizational links with the Gulf region. We would like to build on the considerable goodwill for India that exists at all levels in the UAE.  The UAE is home to about 1.5 million Indians, and is an important source of our energy requirements. Our countries have several complementarities.

The UAE’s energy resources and investable funds, and India’s ability to develop UAE’s service sector and its knowledge-based economy, make us natural partners. Moreover, the UAE has emerged as our third-largest trading partner. We both have similar perceptions on many international issues and have made sincere efforts to further develop bilateral relations in all fields. The UAE has fiercely criticised the recent terrorist attacks in Mumbai as well as the earlier serial blasts in Jaipur – indeed it was amongst the very first countries to do so.

The ongoing global financial crisis presents, in many ways, another window of opportunity for India and the UAE. The investment requirements of a large emerging economy like India and the large financial surplus of an energy rich economy like that of the UAE can provide an opportunity to create a win-win situation for both countries. The relative strength of the Indian economy and the way in which we handled the financial crisis and are emerging out of it has sent clear signals to countries in the Gulf, including the UAE, to strengthen their investments in India. I am happy that we are witnessing substantial investments in the secondary markets in India from the UAE – some $ 4.5 billion is the latest figure. Indian companies are also increasingly looking to invest in the UAE in sectors such as energy, construction, finance and IT. Piracy, criminal activities and terrorism on our seas and land threaten the Gulf countries and India as well.

Q: Did India’s Look East Policy pull it back from focusing more on the Middle East, especially the Gulf Cooperation Council (GCC) which has seen dramatic growth in the past few years?

I don’t think so.  We do look east, but we look west as well, towards the GCC.  India has worked with its Arab friends, including in the Gulf region, in a variety of multilateral forums including the United Nations, the Non-aligned Movement, G-77 etc. India has had a consistent and unwavering record of support for Palestinian cause. We have been, and will remain, abiding friends with the Palestine people and welcome efforts to achieve a durable, comprehensive and just peace in the region. The Gulf region has traditionally been a major trading partner of India. During the year 2007-08, bilateral trade exceeded US$ 80 billion.

Q: Are Indians in the Gulf India’s problem or Kerala’s problem?

Let me rephrase your question by saying that Indians in the Gulf are India’s assets. It is my endeavour to focus on and to work for their welfare and growth. We work to this end in close contact with the Governments of the Gulf countries and in coordination with our Missions and the Ministry of Overseas Indian Affairs. About 4.5 million Indians live and work in the Gulf region. They are a vital support to both our economies and remit more than US$ 10 billion annually to India. During my interaction with the leaders of the countries in this region I am proud when they confirm that our people in this region have made a name for themselves due to their hard work, professionalism and entrepreneurship.

Q: Energy security is a key concern for India. What can be done to seek more help from the GCC in the long term?

It has been the endeavor and also our prime focus to work towards energy security. Our development goals, and our emerging economy necessitate a larger energy requirement. One should also keep in mind that there are few economies that have such proven growth potential. To that extent we are a very large and reliable buyer of crude oil. And we realise that the Gulf countries are the largest suppliers of crude oil and also of gas which is the current pivot of our energy requirement. These countries are in close geographical proximity to us. For these reasons our relationship is mutually beneficial. Of course we need to diversify the relationship from buyer-seller to a more collaborative partnership and we are making progress towards this.

The Gulf countries together provide 70% of our total crude requirements and play a key role in our energy security. The GCC’s substantial oil and gas reserves are of vital importance, and the UAE in particular is an important and major reliable supplier of crude oil to India. Given the Gulf’s vast oil reserves and our geographical proximity, I am confident that India and the Gulf will remain long-term partners in the energy sector.  We would like to transform the present buyer-seller relationship into something more substantial and enduring.  We would like to encourage mutual investments in each other’s energy sectors.  Indian companies could participate in exploration and development projects in the Gulf while companies from GCC countries could invest in India’s down-stream and petrochemical sector. We are working towards cooperation, partnership and joint ventures with the Gulf countries in the field of oil and gas.

Q: You are expected to visit UAE later this year. What will be on the agenda?

Yes, I am coming to Abu Dhabi from October 6 – 8 and my only agenda is friendship!  As I have mentioned, the UAE is one of our largest trading and investment partners globally and I would like to review the whole gamut of 
our relations.  I hope discussions with the leadership of the UAE will help identify new areas for cooperation, especially in science & technology, information & communication technology, energy and hydrocarbons, as well as more intensive security cooperation.   I would also like to flag the investment opportunities for UAE companies in India.   I have been visiting the UAE quite often in a private capacity in recent years, but next time will be my first official visit and I look forward to meeting your leadership whom I hold in high regard. 

Email: rahul@khaleejtimes.com