India and West Asia: Gulf, Iran and Israel

Why West Asia matters to India

West Asia (the Middle East) is India's "extended neighbourhood". India's interests there fall into five groups.

1. Energy: the Gulf supplies a large share of India's crude oil and LNG. Iraq, Saudi Arabia and the UAE are among the top crude suppliers, and Qatar is the biggest LNG supplier.
2. Diaspora and remittances: about 9 million Indians live and work in the Gulf Cooperation Council (GCC) countries (Saudi Arabia, UAE, Qatar, Kuwait, Oman and Bahrain). They send a large share of India's remittances, which are the world's largest remittance inflows (over US$120 billion a year recently).
3. Trade and investment: the UAE is one of India's top trading partners, and Gulf sovereign wealth funds invest in Indian infrastructure.
4. Security: counter-terrorism, maritime security in the Arabian Sea and the Strait of Hormuz, and the evacuation of Indians during crises.
5. Connectivity: Chabahar, the INSTC and IMEC.

India's policy historically supported the Palestinian cause and Arab nationalism and was part of the Non-Aligned Movement. Since 1991, and especially since 2014, India has pursued a "de-hyphenated" policy. It has strong, independent relations with the Arab Gulf states, Iran and Israel at the same time, and avoids taking sides in regional rivalries. This was called the "Look West" or "Think West" policy.

India and the Gulf monarchies

UAE:

• Comprehensive Strategic Partnership (2017).
• The Comprehensive Economic Partnership Agreement (CEPA), India's first CEPA in a decade, signed in February 2022 and in force from May 2022.
• Local currency settlement in rupees and dirhams (2023).
• UPI–AANI payment linkage.
• An IIT Delhi campus in Abu Dhabi.
• The BAPS Hindu temple in Abu Dhabi, inaugurated in 2024.
• A Bilateral Investment Treaty (2024).
• The UAE invests in India's Strategic Petroleum Reserve (Mangaluru) through ADNOC.
• The I2U2 grouping: India, Israel, UAE and the US, formed in 2022.

Saudi Arabia:

• The Strategic Partnership Council (2019) has two pillars: political-security and economy-investment.
• Saudi Arabia is a major oil supplier.
• India and Saudi Arabia agreed a high-level task force on Saudi investments.
• The Haj quota for Indian pilgrims.
• Defence cooperation, including naval exercise Al-Mohed Al-Hindi.

Qatar: India's largest LNG supplier, with a long-term contract renewed in 2024 for 20 years from 2028. Indian ex-Navy personnel sentenced in Qatar were released in 2024 after diplomatic efforts.

Oman: India's closest defence partner in the Gulf. India has access to Duqm port for military logistics. Oman hosts naval exercise Naseem Al Bahr. An India–Oman CEPA was under negotiation and was signed in late 2025. Report its status as of your source date.

India–GCC FTA: negotiations were relaunched in 2022.

India and Iran

India and Iran share deep civilisational links (Persian language, culture and trade) and a land border before 1947.

Areas of cooperation:

• Chabahar port: India's operation of the Shahid Beheshti terminal gives access to Afghanistan and Central Asia that avoids Pakistan. A 10-year contract with IPGL was signed in May 2024.
• The INSTC.
• Energy: Iran was a major crude supplier until India stopped imports in 2019 because of US sanctions.

Constraints:

• US sanctions after the US withdrew from the nuclear deal (JCPOA) in 2018. The Chabahar sanctions waiver was revoked in 2025.
• Iran's statements on Kashmir and on Indian Muslims.
• The Israel–Iran conflict (including direct exchanges in 2024 and the June 2025 strikes), which complicates India's balance.

India has called for dialogue and diplomacy and has evacuated nationals (Operation Sindhu, 2025).

India and Israel

India recognised Israel in 1950 but established full diplomatic relations only in January 1992. Cooperation:

• Defence: Israel is a top arms supplier. Systems include Phalcon AWACS, Heron drones, Barak missiles, Spike missiles and the jointly developed Barak-8/MRSAM. Israel supplied critical equipment during the Kargil war (1999).
• Agriculture and water: Indo-Israel Centres of Excellence in states (drip irrigation, horticulture); desalination.
• Technology and start-ups: the India–Israel Industrial R&D and Innovation Fund (I4F).
• Diplomatic milestones: PM Modi's 2017 visit was the first by an Indian Prime Minister. Relations were upgraded to a Strategic Partnership.
• Trade: diamonds historically; now increasingly technology. A Bilateral Investment Agreement was signed in 2025.
• Labour mobility: Indian workers in construction and care-giving, under 2023 agreements.

Israel–Palestine: India's position

India supports a two-state solution: a sovereign, independent and viable State of Palestine living side by side in peace with Israel, within secure and recognised borders. India was the first non-Arab state to recognise the PLO (1974) and recognised the State of Palestine in 1988. India gives development aid to Palestine and contributes to UNRWA.

After the 7 October 2023 Hamas attacks on Israel, India condemned the terror attack. It also called for protecting civilians, humanitarian aid to Gaza, and a ceasefire. India sent aid to Gaza through Egypt. At the UN General Assembly India abstained on some resolutions and voted for others, depending on the wording, for example whether they condemned terrorism.

IMEC and new connectivity

The India–Middle East–Europe Economic Corridor (IMEC) was announced at the G20 New Delhi summit (September 2023) by India, the US, Saudi Arabia, the UAE, the EU, France, Germany and Italy. It has two parts:

• an eastern corridor: shipping from India to UAE ports;
• a northern corridor: rail across Saudi Arabia and Jordan to Haifa (Israel), then shipping to Greece and Europe.

It also includes electricity cables, data cables and clean hydrogen pipelines. The Gaza war has slowed progress. IMEC is seen as an alternative to China's BRI and a faster route than the Suez Canal.

Crisis evacuations: India's "first responder" record

• 1990 Kuwait airlift: about 1.7 lakh Indians, one of the largest civilian evacuations by air in history.
• Operation Sukoon (Lebanon, 2006).
• Operation Safe Homecoming (Libya, 2011).
• Operation Raahat (Yemen, 2015).
• Operation Ajay (Israel, 2023).
• Operation Sindhu (Iran and Israel, 2025).
• Vande Bharat Mission (COVID-19, 2020).

These operations show India's growing capacity to protect its diaspora.

Red Sea and maritime security

Houthi attacks on shipping in the Red Sea and the Bab-el-Mandeb strait from late 2023 forced ships to go around the Cape of Good Hope, which raised freight costs for Indian exporters. The Indian Navy deployed warships in the Arabian Sea and Gulf of Aden, rescued crews and countered piracy (e.g. MV Ruen, 2024). India did not join the US-led Operation Prosperity Guardian; it acted independently.

Practice: Mains question

*"India's West Asia policy has evolved from a solidarity-based approach to an interest-based de-hyphenated engagement." Discuss. (250 words)*

Quick self-test

1. *What does "de-hyphenation" mean in India's West Asia policy?* India deals with Israel, Iran and the Arab states on separate tracks, so that its ties with one do not depend on its ties with another.
2. *Which grouping links India, Israel, the UAE and the US?* I2U2, formed in 2022.