Context

In the wake of recent allegedly derogatory remarks made against Prophet Mohammad, that triggered a diplomatic offensive from the Muslim world, it is important to analyse India’s stakes in West Asia.

Background

The geographic boundary

• Western Asia is bounded in the
  • west by the Mediterranean Sea and the Red Sea
  • north by the Black Sea, the Caucasus, and the Caspian Sea
  • east by the fringing mountains of Iran
  • south by the Arabian Sea and the Indian Ocean
    

Assessing India’s dependence on West Asian countries

• Domestic crude oil productionmeets less than a fifth of the country’s oil requirement, forcing India to rely on imports to fill the gap of over 80%.
• The share of Gulf countries of India’s total crude oil imports has remained fairly stable over the past 15 years at around 60%.
  • In 2020-21, India’s top oil exporter was Iraqwith a share of over 22%, followed by Saudi Arabia – at around 18%.
• Bilateral trade:Countries in the West Asian region collectively account for one-sixth of India’s total bilateral tradeand contribute about three-fifths of India’s crude oil supply.
• Economic opportunity:The region is a major provider of jobs and economic opportunitiesfor Indian workers, professionals and entrepreneurs and is home to approximately 8.9 million Indians.

• International Treaties:India has signed a Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates earlier this year, has become one of the biggest contributors to the region.
• Easy access:With the region acting as a major hub for markets in Africa, India is keen to have tariff-free access to its exports not only in the Gulf region but also in countries in Africa.

Challenges for India in West Asia

• Islam: On issues of Islam, particularly with reference to the Quran and Prophet Mohammed, most if not all 57 members of the Organisation of Islamic Countries (OIC) stay together.
  • For them, it is also a common ‘identity issue’, in these times of perceived and propagated strife.
• Lack of direct investment: India lacks direct investment in the energy sector of this oil and gas-rich region.
• Growing divide:The region is quickly turning into a highly polarised part of the world. The growing divide between Riyadh and Tehran and Washington’s hypocritical ignorance could put New Delhi in a spot of bother.
• Emergence of non-state actors:Another emerging threat in the region is of non-state actors. Large scale instability and growing terrorism in West Asia has increased the threat of takeovers of natural resources by non-state actors.