UNIT 11 INDIA AND CENTRAL AND WEST ASIA

Structure

11.0 Objectives
11.1 Introduction
11.2 Central Asia: A Background
11.2.1 Economy
11.2.2 Polity and Society
11.2.3 Geo-Strategic Importance
11.3 India and Central Asia
11.3.1 Bilateral Relations
11.3.2 Security Concerns
11.3.3 Economic Cooperation
11.3.4 Cultural Relations
11.3.5 Obstacles to Economic Cooperation
11.4 West Asia: A Background
11.4.1 Geostrategic Scenario: Wars and Conflicts in West Asia
11.5 India and West Asia
11.5.1 India‘s ‗Look West‘ Policy
11.5.2 Landmarks in India‘s Policy
11.6 Let us Sum Up
11.7 Some Useful References
11.8 Answers to Check Your Progress Exercises

11.0 OBJECTIVES

Central Asia and West Asia are two distinct regions. The present Unit deals with India‘s relations
with two very important regions viz. Central Asia and West Asia. These two strategically important
regions are energy rich and form India‘s ‗extended neighbourhood‘. Meaning thereby that their
stability and prosperity is essential for India‘s security and economic development. After reading
this Unit, you would be able to:

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  get an overview of the geography, resources, economy, polity and society of the two regions;
 understand the geopolitical and geo-economic importance of Central Asia and West Asia for
India;
 know about India‘s security concerns and economic interests; and
 analyze important bilateral relations.

11.1 INTRODUCTION

Central Asia and West Asia are important regions in the present day world. The two regions together
possess more than two-third of the world‘s proven oil reserves and a considerable amount of natural
gas, which are vital for the functioning of modern industrial society. Oil imports account for nearly
two thirds of India‘s oil consumption and more than half of this comes from this region – mainly the
Persian Gulf. West Asia remains the biggest oil supplier to India; and this dependence on West Asian
oil supplies shall only increase in view of rising domestic consumption of oil. In sum, West Asia is
crucial for India‘s energy security.

Geographically, the Central and West Asian regions connect the Asian landmass with Europe and
Africa. Historically, major trade routes crisscrossed them. Peoples and cultures travelled through
these routes to India. Invaders came from Central Asia and Afghanistan and built strong and
prosperous empires in India. In recent times, this area is considered vulnerable to the rise of religious
extremism and terrorism. This has implications for regional stability and India‘s security. Pakistan‘s
attempt to increase its influence in these countries adds to India‘s security concerns. The Central and
West Asian regions are described by foreign policy establishment as India‘s ‗extended
neighborhood‘.

Central Asia and West Asia are both covered in this Unit. There are of course some commonalities
but otherwise the two are very distinct regions. Therefore, the present Unit describes and analyses
India‘s relations with these two very vital regions separately.

11.2 CENTRAL ASIA: A BACKGROUND

Central Asia comprises five republics of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and
Uzbekistan. These five nations emerged as independent states after the collapse of the Soviet Union

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in1991. Central Asia is a vast geographic area spread over around 4 million square kilometers and
having a total population of 70 million. The defining feature of Central Asia is its location:
landlocked and at the crossroads of East, West, North and South Asia. Historically it has been the
meeting ground of major world civilizations: the Chinese, Slavic, Turkic, Persian and Indian. In
present times, it borders Russia and China, as well as the turbulent Afghanistan-Pakistan region.

Central Asia is rich in hydrocarbon resources. Kazakhstan has the twelfth largest proven oil reserves
at an estimated 30 billion barrels; Turkmenistan‘s natural gas is estimated at 265 trillion cubic
feet. Uzbekistan also has exportable gas; more important it has significant deposit of uranium and
gold. Tajikistan and Kyrgyzstan are deficient in hydrocarbons but have abundance of hydro-electric
potential.

Religious revivalism and radicalism are among the major challenges facing Central Asia. Central
Asian populations are turning towards Islam after having endured more than 70 years of Soviet
Communist atheism and repression of religious freedom. Both the Czarist Russia and the Communist
Russia had followed the policy of ‗Russsification‘ of Central Asian cultures. Ethnic Russian
nationals and Russian language remained dominant in the areas of governance and culture. Since
their formation, all the five Central Asian republics have lived under strong and repressive
authoritarian regimes. Peoples‘ aspiration for freedom and representation has been crushed with iron
hand. One cannot discount the threat of Islamist militancy and terrorist activities under the
circumstances. There are radical and terrorist groups that are said to operate out of the volatile
Afghan-Pakistan region.

11.2.1 Economy

Apart from oil and natural gas, Central Asia is a major producer and exporter of products like cotton,
wool, meat, animal skins and leather goods. It also has considerable deposits of minerals such as
uranium, gold, silver, iron ore, coal, copper, zinc, lead and manganese among others. The dissolution
of the Soviet Union disrupted the exploitation and markets for these resources. Also, the region lost
the managerial and skilled manpower to exploit and export these resources.

The performance of these countries on socio-economic development indicators is mixed. Kazakhstan

with its significant export revenues has done better than others. Turkmenistan earns through gas

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export. Kyrgyzstan and Tajikistan with limited resources lag behind. Uzbekistan is a potential leader
in the region due to its central location (having border with all other Central Asian States and
Afghanistan), large population and traditionally the focal point of Central Asian civilization and state
systems.

11.2.2 Polity and Society

Central Asian republics are ruled by autocratic presidents; legislature and judiciary are not supreme
and independent. Personal freedoms are limited; and press freedom almost nil. Having lived under
Soviet tutelage and earlier under Czarist Russia, Central Asia republics are grappling with the
monumental challenge of defining their national identity. Sometimes, they try to define themselves
in terms of their language and culture. Domination of Russian language, script and culture during
Soviet era has had distorting effects on their languages and cultures. Overall, there is a revival of
their Islamic and Central Asian identity. Except Tajikistan, all other states are Turkic-speaking.
Autocratic rulers fear the spread of pan-Islamic and pan-Turkic movements. They belong to the
Soviet era communist party leaders and were part of the Soviet state apparatus. To their credit, the
region remains stable. None of the republics has shown any movement towards democracy or
development; and much less towards nationhood. Water scarcity, chaotic borders, environmental
degradation and migration are some of the problems besides drug trafficking, which emanates from
Afghanistan.

11.2.3 Geo-Strategic Importance

Central Asia is a landlocked region in the heart of Asia. In the nineteenth century, it was the battle
ground for the two expanding empires – the Czarist Russia and the British Indian Empire. There
ensued the ‗Great Game‘ for power and influence. Because of its geo-strategic location at the
crossroads of Russia, China, West Asia and Europe, and its hydrocarbon and other mineral resources,
the region is witnessing an intense rivalry for influence among important global and regional powers,
namely, the United States, Russia, China, Turkey, Iran, India and Pakistan. This is often referred to
as the ―New Great Game‖. Lack of an outlet to the sea makes these states vulnerable to intimidation
from their neighbours, especially Russia, through which most of the existing trade and transit routes
and oil pipelines pass. Search for alternative transit routes to minimize their dependence on Russia
induces them to look towards their other neighbours – China, Japan and Korea. Central Asian

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republics need investment and technology for development and friendship of US to balance security
relations with Russia. US and its European allies offer security cooperation through NATO‘s
Partnership for Peace Programme.

US sees Central Asian republics and Afghanistan as strategically important to keep a watch on China
and Russia; more so, in the light of the growing proximity between the two countries. It also sees
Central Asia as an important theater in the war on terrorism. It deems it necessary to check any
extension of Iranian influence. Turkey has its own cultural expansion with the Turkic speaking
populations in Central Asia. Russia and China consider the region their sphere of interest. The
Shanghai Cooperation Organization (SCO) and Eurasian Economic Union (EEU) are mechanisms to
keep Central Asia within Chinese and Russian fold. Central Asia is the ‗strategic backyard‘ of Russia
who describes as its ‗near abroad‘. Other regional powers such as Turkey, Iran and Pakistan are also
in the fray in the Central Asia. There is asymmetry of interest and capability. And this is a major
factor in the competition among states for influence in the region.

Check Your Progress Exercise 1

Note: i) Use the space given below for your answer.
ii) See the end of the unit for tips for your answer.
1) Explain the geostrategic importance of Central Asia.
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11.3 INDIA AND CENTRAL ASIA

India was a late starter in building relations with the Central Asian Republics in the 1990s. India was
beset with domestic economic difficulties associated with the transition from the state-regulated

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economy to a liberalized economy. Central Asian Republics immediately upon their formation were
also faced with political uncertainty. India does not have direct physical access to Central Asia; and
this factor has proved an impediment in building strong economic, commercial, energy, tourist links
with Central Asia. Overland trade is hampered by the denial of such a facility by Pakistan and war
conditions that prevail in Afghanistan. Trade hence has been conducted with Central Asia through
the time consuming and expensive routes – through China or northern Europe and Russia. India has
finally achieved a breakthrough by securing access and developing the Iranian port of Chabahar. The
port opens India trade with Central Asia, Afghanistan and all the way with Russia through
the International North-South Transport Corridor (INSTC) – India has signed on the Ashgabat
Agreement.

11.3.1 Bilateral Relations

Bilateral-level contacts were established immediately upon the birth of these nations in 1991. Scores
of summit level meetings have taken place, which underscore the strategic importance India attaches
to these countries. Besides the summit level meetings, there have been regular visits of officials,
business and cultural delegations, and scientists and scholars from both sides. An important and
decisive initiative was taken by India when Prime Minister Narendra Modi visited all five Central
Asian republics in July 2015, combining it with his participation in the BRICS summit at Ufa,
Russia. India‘s decision to join SCO marks a new level in India‘s engagement with Central Asia.
Annual summit of SCO gives a regular platform to India to engage with leaders of these countries
and discuss issues of bilateral and regional interest. It is hoped that with India now in SCO, close
cooperation in security, defence, energy and trade would be established with all the Central Asian
republics besides of course with Russia and China. SCO is a political, security and economic
grouping. Its members are China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, Uzbekistan, India and
Pakistan. India is also in negotiations with the Russian-led Eurasian Economic Union (EEU) on the
proposal for an India-EEU free trade agreement. EEU has a population of 183 million and an annual
GDP (PPP) of US$ 5 trillion. Member countries are: Armenia, Belarus, Kazakhstan, Kyrgyzstan and
Russia.

India-Kyrgyzstan Bilateral Relations: Four basic agreements have been signed on defence
cooperation; an MOU and cooperation agreement in the field of elections; an agreement on standards
which was signed between Bureau of Indian Standards and Ministry of Economy of Kyrgyzstan; and

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a cultural cooperation agreement. The two countries have also agreed to hold joint military
exercises; the first one was held in Khanjar, Kyrgyzstan in 2015.
India-Uzbekistan Bilateral Relations: Uzbekistan is a large-sized country in terms of territory and
population. It is the potential regional leader with borders with all other Central Asian states and
Afghanistan. Sizeable Uzbek minority populations are found nearly all over Central Asia. India and
Uzbekistan hold discussion on important bilateral and regional matters, e.g. the situation in
Afghanistan. There are three bilateral agreements to boost cooperation between their foreign offices
and in the field of culture and tourism. In 2014, India has also signed an agreement for import of
2,000 metric tonnes of uranium from Uzbekistan.

India-Kazakhstan Bilateral Relations: The two countries have agreements to boost cooperation in
trade, energy, defence, railways and security matters. Kazakhstan, a leading uranium producer in the
world, agreed to supply 5,000 tonnes of uranium to India during 2015-19. The two countries
welcomed the setting up of the Joint Study Group between India and the Eurasian Economic Union
on the feasibility of a Free Trade Agreement (FTA).

India-Turkmenistan Bilateral Relations: Turkmenistan is a potential supplier of natural gas to India.

The two countries have the agreement on the US$ 10 billion TAPI (Turkmenistan-Afghanistan-
Pakistan-India) gas pipeline project. India is expected to receive about 13 bcm per annum once the
1800 km pipeline is completed. They also signed seven pacts to enhance cooperation in defence,
chemicals, youth affairs, sports, foreign services institutes, science and technology, Yoga and
traditional medicine and tourism.

India-Tajikistan Bilateral Relations: India and Tajikistan have resolved to further their cooperation
against terrorism, especially emanating from their neighbourhood – an obvious reference to Pakistan
and Afghanistan. Agreements were signed for cooperation in culture and computers among other
fields. .

11.3.2 Security Concerns

Religious extremism and terrorism is a major threat in countries in and around Central Asia. A
number of countries have been affected by it—India in Kashmir, Russia in Chechnya, China in
Xinjiang and Uzbekistan and Kyrgyzstan in the Ferghana valley. Tajikistan endured a long drawn

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civil war between the government and Islamic militants and the Uzbek president Islam Karimov
barely escaped an assassination attempt in February 1999. Afghanistan under the Taliban had
sheltered Osama bin Laden‘s Al-Qaeda. Pakistan, it is thought, is a safe haven and training ground
for varieties of Islamic militant groups. Central Asian States readily joined America‘s Global War
On Terrorism (GWOT) launched after the terrorist attacks in US on 11 September 2001 (9/11).
Uzbekistan and Kyrgyzstan offered military bases and Kazakhstan gave other facilities when US sent
its forces to Afghanistan to overthrow the Taliban regime in October 2001. India has formed joint
working groups on terrorism with a number of countries including the US, Russia, China,
Kazakhstan and Tajikistan. Besides, trafficking in drugs and arms is another security threat in
Central Asia which impinges on India‘s security.

11.3.3 Economic Cooperation

India and Central Asia states have economic complementarities in terms of resource endowment,
managerial and skilled human resources, and promising markets. India‘s main exports to Central
Asia have been pharmaceuticals, tea, machinery and instruments and readymade garments. Major
imports from the region are iron and steel, gold and silver, non-ferrous metals and fibres. These
countries are short of managerial and skilled manpower. India can help Central Asian countries with
its professionals and skilled manpower in fields like banking, insurance, construction, technical
education and financial management, and mining.

Following are the major areas of cooperation:

Energy: India has emerged as the third largest energy consumer in the world and according to one
study, its energy consumption is growing at the rate of 6 per cent per annum. The country imports
three-fourth of its petroleum requirements. Central Asia and the Caspian region are emerging as an
alternative source for the supply of oil and natural gas. The main oil and gas deposits in Central Asia
are found in Kazakhstan, Turkmenistan and Uzbekistan. The Oil and Natural Gas Commission of
India (ONGC) is preparing to participate in the prospecting of oil in Darkhan and Kurmangazi
exploration blocks in the periphery of the Caspian Sea in Kazakhstan. India would also bid for a
presence in the Asibekmola and Kozhasai natural gas fields. Turkmenistan, which has considerable
natural gas reserves, is keen to build a gas pipeline through Afghanistan and Pakistan to India.

Kyrgyzstan and Tajikistan have enormous hydel power resources. In Tajikistan, each square

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kilometre of the territory has up to 2 million KW hours of hydel power resources, which is a huge
figure. The government of Kyrgyzstan has an ongoing programme to develop small and medium
sized hydel power stations. The country looks towards India as a future source of finance and
technology in this effort and above all as a large market for supply of hydel energy.

Pharmaceuticals and Healthcare: Another key area of cooperation between India and Central Asia
is pharmaceuticals and healthcare. Mainly due to its efficiency and cost effectiveness, India has a
competitive advantage in the global market in this field. Some of the Indian companies exporting
pharmaceutical products to Central Asia are Claris Life sciences, Ranbaxy, Dr Reddys, Lupin
Laboratories, Unique Laboratories and Aurobindo Pharma. Some of these companies are planning to
set up manufacturing units in Central Asia itself. The pharmaceutical factory of the Kazakh-India
joint venture Kazakhstan Pharma is in the process of completion in Almaty.

Other Areas of Cooperation: Information technology (IT) and technical training are the areas where
India can make substantial contribution to the Central Asian states. Already there are agreements in
this regard with Uzbekistan, Kazakhstan and Kyrgyzstan. India is building a software technology
park in Kazakhstan. A memorandum of understanding has been signed between Kyrgyzstan and the
Indian company Edurite Technologies for cooperation in the field of IT education. Under the ITEC
programme India has allotted slots to all Central Asian countries for the training of their candidates
in selected Indian institutes. Tourism, space technology, defence cooperation, food and cotton
processing, environment conservation, disaster management and telecom are other emerging areas of
cooperation.

11.3.4 Cultural Relations

Central Asia has India‘s soft power print. Historical and cultural links go back to the Indus Valley
civilization. The theory of Aryan migration from around the Caspian Sea continues to be debated and
explored further by historians on India. Buddhism was the dominant creed in the area before the
advent of Islam. Islam came to India through Central Asia. With it came Sufism, music and
literature, architecture, cuisine and fashion and, above all, people of different origins and ethnicity.
For nearly a millennium, there remained a ceaseless flow of people, goods and ideas back and forth.
Indian trade diaspora existed in Tashkent, Bukhara and other places all through the medieval period.
These dense exchanges were interrupted by the onset of British colonialism in India and Czarist
conquests of Central Asian khanates in the 19th century.

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India remains part of the imagination and literature in Central Asia; so do cities like Tashkent and
Bukhara and others in Indian literature. The Soviet Revolution of 1917 and India‘s Independence in
1947 helped revive and reestablish some of these contacts. India was one of the few countries
allowed by the Soviet Union to have trade and cultural contacts with the Central Asia. Indian
maintained its consulates in Tashkent and Almaty. The great Indian Sufi saint Amir Khusrow is a
household name in the region. Indian films and music is very popular throughout the region. India
enjoys lots of good will and Indian visitors are received with warmth.

India offers scholarships for study in India including under the Indian Technical and Economic
Cooperation (ITEC) Programme to students and young professionals of these countries for study,
training and human capacity development. ITEC has made notable contribution to economic and
social development in beneficiary countries. There is scope for Indian companies to participate in
infrastructure building projects related to construction of railways, roads, highways, power stations,
transmission lines, renewable energy, nuclear power etc. Some of these projects are funded by
international agencies and multilateral banks like ADB, EBRD, IBRD, IDB, AIIB and NDB. There
are other sectors such as oil and gas, information technology, pharmaceuticals and textiles, and
tourism which have considerable potential areas of cooperation.

11.3.5 Obstacles to Economic Cooperation

Despite considerable potential, the level of actual trade and investment between the two regions has
been very low. The entire Indian exports to Central Asia is less than two per cent of its total exports
while the imports account for only 1.5 per cent of the total Indian imports on an average basis. One
of the main hindrances in the way of economic cooperation between India and Central Asia has been
the non-availability of hard currency and the lack of conversion facility services. To overcome the
scarcity of currency, India has extended credits to each of the Central Asian states. But it has either
not been fully utilized or is considered insufficient. Lack of proper information channels and
mechanisms has also been one of the impediments in furthering cooperation. However, absence of
direct rail, road or sea link has been the most important obstacle in India‘s relations with Central
Asia. The existing route through Black Sea is time consuming and costly, though time tested and
reliable. The shortest and most economical route for India would be through Iran. Iran has fairly
good networks of road and railway, which are directly linked to Central Asia through Turkmenistan.

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India acquired two berths at the Iranian port of Chabahar to facilitate trade with Central Asia and
Afghanistan and access to the north-south transportation corridor which can take Indian goods all the
way to Russia.

On the whole, economic and cultural relations remain modest; the full potential of these relations
have yet to be realized. Absence of a land route remains a major hurdle. India‘s membership in the
SCO and cooperation through EEU should facilitate close cooperation with Central Asian republics.

Check Your Progress Exercise 2

Note: i) Use the space given below for your answer.
ii) See the end of the unit for tips for your answer.
1) Make an analysis of India‘s economic relations with Central Asia.
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11.4 WEST ASIA: A BACKGROUND

West Asia is the most volatile and conflict prone region in the world at present. In the past it
witnessed the birth of three great religions – Judaism, Christianity and Islam—and some of the
greatest civilizations in human history – Egyptian and Mesopotamian. The region saw high
watermark of achievement under the Babylonian and Iranian Empires in the ancient times and the
Abbasid and Ottoman Empires in the medieval times. The decline of the Ottoman power during the
19th and early 20th centuries led to an increase in the influence of British, who considered it as the
―western flank‖ in the defence of their British Indian Empire. With the discovery of oil in Iran at the

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beginning of the 20th Century, followed by more substantial finds around the Persian Gulf, the
region became the focus of interest for the old as well as the emerging great powers.

11.4.1 Geostrategic Scenario: Wars and Conflicts in West Asia

Islam is the dominant religion and identity in West Asia. However, the region has significant
sectarian and ethno-cultural diversity. Broadly speaking, the four distinct ethno-cultural groups in the
region are the Turks, Persians, Arabs and Israelis. The first two account for the states of Turkey and
Iran. The Arabs are spread over more than 20 states across West Asia to North Africa. Israel is a
Jewish state that came into existence in 1948. While the Shias are a majority of the population in
Iran, Iraq and Bahrain, Sunnis are preponderant in all the Arab states. These divisions have led to
political tensions and conflicts in the region. There have also been rivalries within the Arab world.
After the Second World War, the secular, anti-colonial and pro-Soviet forces led by Gamal Abdel
Nasser of Egypt and the Baathist Syria and Iraq dominated Arab politics. The Arab‘s defeat in the
1967 Arab-Israeli war and oil price hike in 1973 saw the political and economic ascendance of the
oil-rich conservative Gulf monarchies that are closely allied with the US.

The main conflict in the region is on the question of the Arab-Palestinian demand for independent
statehood. This is opposed by Israel that accuses them of terrorism. The US and the West in general
is the main supporter of Israel. Arab defeats in the1967 and 1973 wars and the failure of Israel-
Palestinian negotiations are regarded by many to be the root cause for the rise of terrorism and
religious extremism in the region. There are other factors, such as rising population, socio-economic
stagnation, and absence of mechanism for popular participation in majority of the states that have led
to popular alienation. The dominant US military presence in this region (including in the Muslim
Holy places) has been deeply resented by the Muslim Ummah over the world. This has prompted the
US to withdraw its forces from Saudi Arabia. The continuing divisions among the Palestinians and
the intransigence of Israel have led to an intractable situation and hopelessness.

The end of Cold War produced only more wars and destruction in West Asia. First came the Iraqi
invasion of Kuwait and the First Gulf War in 1991. Thereafter, it is a long list of countries engulfed
in civil wars, external interventions, regime change with no prospects of peace and security ever
returning to them. For nearly three decades, West Asia is characterized by a high degree of political
instability, breakdown of regimes and forced regime change and foreign interventions. The internal
security situation in Syria, Iraq and Yemen remains very precarious. The regional powers and local

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outfits are all fighting proxy wars on sectarian and tribal/ ethnic lines, providing money and weapons
to their favoured groups. The extra-regional players such as the US and Russia are involved in
internal conflicts, backing rival sectarian and ethnic factions, changing regimes and imposing
regimes of their choice.

In fact, there are multiple fault-lines in West Asia: Arab/Palestine versus Israel, Saudi/GCC versus
Iran, Shia versus Sunni, US versus Russia, regional versus extra regional powers, and moderate vs.
fundamentalist elements. The result is intractable conflicts and large-scale instability. These wars
and myriad conflicts have direct bearing on India‘s security. India has to do fine balancing between
its traditional close relation with Arab/ Palestine and emerging partnership with Israel, between Iran
and Saudi Arabia and between precarious governments, for instance, in Libya and Syria and their
various armed adversaries.

There is a sense of alienation and despair amongst the vast swathe of Arab population. Arab world
has a large young population, what is called the ‗youth bulge‘. This young population has found
internet and social media as medium to express itself and reach out to others. Autocratic rule, denial
of basic freedoms, poor governance, corruption and high levels of unemployment, lack of quality
education and skills and high cost of living produced popular political upheavals which came to be
called ‗Arab Spring‘. Arab Spring began in 2010 with popular protests in Tunisia. Regimes changed
in Tunisia, Egypt and few more places. Arab Spring however did not bloom; liberal democracy did
not come to any one of the countries. It is back to square one. Rather, entire societies e.g. Libya,
Syria, Iraq, Lebanon, Yemen seem to have regressed into political chaos and despotic rule. It is an
unending nightmare for people with violence and warfare continuously going on and getting intense
with the involvement of foreign powers.

11.5 INDIA AND WEST ASIA

West Asia is part of India‘s ‗extended neighbourhood‘. The region is important for India because of
its geographical proximity and historical-cultural affinity, energy supplies, India‘s expatriate labour
as well as present day security concerns and economic interests. Following are some of the main
economic and security related issues.

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Oil Supplies: Uninterrupted supply of oil at reasonable price is vital for India‘s economic health in
view of its heavy dependence on imports from the region. Any conflict in the region, such as the
Arab-Israeli war, Iran-Iraq war and Kuwait crisis, can disrupt oil supply and/or a price hike,
imposing additional burden on the Indian economy.

Remittances: There are more than seven million Indian migrant workers in the Gulf region. Their
annual remittance of US$ 80 billion is the highest source of foreign exchange earnings for the
country. India is the top remittance receiving country in the world. The safety and wellbeing of the
large Indian community is a major priority for India. Any tension in the region, or in India‘s relations
with these countries, may have negative consequences for these migrant workers and also for the
Indian economy. Besides, in view of the violence and volatile political situation, India has to be
ready with contingency plans to evacuate thousands of its citizens from conflict zones.

Religious Extremism: The rise of religious fundamentalism and its political manifestation in the
form of jihadi radicalism and terrorism is a cause of grave concern to India. India has its large
Muslim population and there is ongoing militancy in Kashmir. India fears radicalization of sections
of its Muslim population. Pakistan, under the slogan of Pan-Islamism, tries to exploit the situation. It
is evidenced by the sympathy shown by the OIC – Organization of Islamic Cooperation – with
Pakistan‘s stand on Kashmir issue.

Commercial Links and Trade Routes: India has substantial trade with West Asia. The liberalization
of the Indian economy has given further boost to these commercial links. The region accounts for
more than 25 per cent of India‘s global trade. Major imports are hydrocarbons while wheat, non-
basmati rice, textiles, and engineering and manufactured goods are the main exports. The Indian
construction companies have got contracts in the region. The Persian Gulf and Suez Canal are the
main waterways through which bulk of India‘s international trade is carried out. Hence, the safety of
these routes is vital for the country. In the age of air travel and transport, West Asia has become an
integral link in India‘s westbound air service. Iran is emerging as an important transit route in our
interaction with Central Asia.

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11.5.1 India’s ‘Look West’ Policy

After independence, India under the policy of Non-Alignment extended a hand of friendship to the
countries of West Asia which were resisting the Cold War pressure to join rival military blocs. This
led to close relations with Nasser‘s Egypt and Baathist Iraq. India‘s consistent support to the
Palestinian cause created a favourable image of the country among the Arab people. This, coupled
with the historical ties and the vigorous commercial links, has helped India build vibrant relations
with almost all the countries of the region. In 2005 India adopted the ‗Look West‘ policy, which has
been given a thrust under Prime Minister Narendra Modi who has visited the region several times.

There is a new context and hopes for robust cooperation between India and the West Asian countries.
There are many factors behind the fundamental shift in West Asian strategic thinking. Twentyfirst
Century is the ‗Asian Century‘. East Asia, South East Asia and India are among the dynamic
economic regions of the world. There are scientific and technological breakthroughs also in this part
of the world. First, South and East Asia are replacing Trans-Atlantic as the main markets for West
Asian oil and gas. This is the most significant structural change in the global energy market. Second,
due to the rising economic and political profile of the Asia (mainly China and India) and the fiscal
problems faced by the European economies and Trump‘s ‗America first‘ policy, West Asia
increasingly relies on China, India and other Asian powers for security guarantees to the region.
Several GCC states have entered into defence cooperation agreements with India. Third, in the wake
of the Arab Spring and the endless crisis in Egypt, Iraq, Libya and Syria, the monarchical states in
the Gulf consider India and China to be more reliable interlocutors than Western states. Fourth,
radical and extremist religious and political forces have become a common threat to not just India but
West Asia as well; in particular, the nearby GCC countries look at India as a source of security and
stability against religious militancy and terrorism. Finally, some basic institutional mechanisms are
being set; the first Ministerial Meeting of Arab-India Cooperation Forum was held in the Bahraini
capital Manama in January 2016.

Check Your Progress Exercise 3

Note: i) Use the space given below for your answer.

ii) See the end of the unit for tips for your answer.
1) Delineate the relations between India and West Asia.

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11.5.2 Landmarks in India’s Policy

Palestine Issue: India has extended moral and political support for the creation of a viable state of
Palestine alongside Israel. India shares the perception that the question of Palestine is at the core of
the Arab-Israeli conflict. India became the first non-Arab State to recognize the Palestine Liberation
Organization (PLO) as ―the sole legitimate representative of the Palestinian people‖ and allowed it to
open its office in New Delhi in January 1975. The PLO Office in New Delhi was accorded full
diplomatic recognition in March, 1980. India accorded recognition to the State of Palestine in
November 1988 and the PLO Office in New Delhi started functioning as the Embassy of the State of
Palestine. In the wake of establishment of the Palestinian National Authority (PNA), India opened its
Representative Office in Gaza on June 25, 1996, for ensuring effective coordination with the PNA.
India has supported the Middle East Peace Process since its launch with the Madrid Conference in
1991. It has also endorsed all the subsequent peace agreements between Israelis and Palestinians. The
Palestinian leadership has been frequent visitors to India. India has extended financial and technical
assistance for development works in Palestine areas. The country offers scholarships to Palestinian
students under ICSSR scheme and slots for training courses under the ITEC Programme.

Israel: India had recognised the Jewish State of Israel way back in 1950. But, it established full
diplomatic relations only in 1992. Since then there has been an upswing in the relations between the
two countries in view of the common concerns about religious extremism and global terrorism. Israel
and India have developed close ‗cooperation‘ in intelligence gathering and sharing and counter-
insurgency operations. India has become a major buyer of Israeli armaments. India imports critical

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defence technologies from Israel. There are regular exchanges between the armed forces and defence
personnel. India has recently bought spike anti tank missiles, and Barak Missiles, for navy, and also
tested the Barak 8 missile system. India‘s Air Force is now awaiting clearance to buy two Phalcon
airborne surveillance radars from Israel while the army is waiting for approval to buy 8,356 Spike
anti-tank guided missiles from Israel‘s Rafael Advanced Defence Systems, along with 321 launchers.
There is a considerable potential for Indo-Israeli cooperation in the field of science and technology,
particularly in areas such as dry land farming, horticulture mechanization, protected cultivation,
orchard and canopy management. There has been a spurt in high level bilateral visits in the recent
times. President Pranab Mukherjee visited Israel in October 2015. Prime Minister Narendra Modi
became the first Indian head of government to visit Israel in 2017. In 2018 Israel PM Benjamin
Netanyahu came to India.

Iraq Crisis: India and Iraq established close political and economic relations during the 1970s and
1980s. Incidentally, both concluded Friendship Treaties with the erstwhile Soviet Union—India in
1971 and Iraq in 1972. At one point of time, Iraq was the source of 30 per cent of India‘s oil needs
and home to 90,000 Indians working there. It was the only Arab country that consistently supported
the Indian position on Kashmir. Indian firms got some of the biggest contracts in the country. Hence,
the1991 Iraqi invasion of Kuwait presented a difficult choice for the Indian foreign policy. The
consequent oil price hike put serious strain on India‘s balance of payments position. India favoured a
peaceful political settlement, but ultimately went along with the UN Security Council Resolutions
661 and 678 which condemned Iraqi invasion and authorized the ‗use of force‘ against it.
Throughout, India maintained that ―unwise and unjust‖ UN sanctions against Iraq should be lifted
and was sensitive to the suffering of the Iraqis. During the 2003 US invasion on Iraq, New Delhi
expressed its concern about the US military action because of its likely human and material
implications and its possible impact on oil prices. US and the ‗coalition of the willing‘ invaded Iraq;
India maintained that any military action should have had UN authorization. India refused to send its
soldiers to Iraq. Neither supporting the United States nor condemning it for its illegal aggression on
Iraq, the Indian Parliament passed the famous ‗ninda’ resolution. The resolution did not condemn
but deplored (ninda) US military attack on attack. It was sort of a middle path by the government of
Prime Minister Atal Bihari Vajpayee.

By December 2011 American military forces withdrew from Iraq, bringing an end to the Iraq War.
The war led to sectarian violence and displacement and poverty for millions of Iraqi civilians.

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Elected civilian governments proved sectarian in their composition and policies. A deadly civil war
raged. New forces emerged; most significantly the Islamic State in Iraq and the Levant (ISIL). ISIL
operated across Iraq and Syria and attracted thousands of foreign jihadists into its ranks.

India‘s trade and economic relations with Iraq slumped after the invasion of Iraq in 2003 but picked
up after 2010, mainly due to increased crude oil imports. Iraq was India‘s 15th largest trading partner
in 2016-17. Apart from oil, India imports raw wool and sulphur from Iraq and exports cereals, iron
and steel, meat and meat products, pharmaceutical products, agro chemicals, cosmetics, gems and
jewelry, ceramics, machine tools, electrical machinery, transport equipment, electronic goods,
handicrafts, sugar, tea, garments to Iraq. More than 80 Indian pharmaceuticals companies are
supplying medicines and a number of Indian hospitals treat Iraqi patients.

There have been number of high-level political visits between the two countries in recent years.
Prime Minister of Iraq, Nouri Al Maliki paid a state visit to India in August 2013 heading a strong
business delegation, which resulted in the signing of four MOUs - Cooperation in Energy Sector;
Cooperation between the two Foreign Ministries; Cooperation between the Foreign Service Institutes
of both sides; and Cooperation in the field of water resources management. Ministerial level visits
ensued thereafter.

Iran: Geographically, historically and culturally Iran has been closest to India, among the countries
of West Asia. After the Islamic Revolution of 1979, a large consensus between the two countries has
emerged on various global and regional issues. Incidentally, India‘s perception of Iran is in
congruence with the Russian position, which differs with the US characterization of Iran as a ‗rogue
state‘ or ‗axis of evil‘. Iran is India‘s most viable transit option for trade with Central Asia and
Russia. New Delhi-Moscow-Teheran signed an agreement in St. Petersburg in 2000 to send Indian
cargo to Russia via Iran through the North-South Corridor. Once this new corridor becomes fully
operational it could boost Indian trade with Central Asia as well as Central Europe. India and Iran
have exchanged regular high level visits.

Prime Minister Dr. Manmohan Singh had attended the 16th Non-Aligned Movement (NAM) Summit
held in Tehran from August 28-31, 2012. Prime Minister Modi paid a milestone bilateral visit to Iran
from May 22-23, 2016. The two countries signed 12 MoUs/Agreements. India, Iran and Afghanistan
inked a Trilateral Agreement on Transit and Transport. The historic agreement to develop the
strategic port of Chabahar in Iran will halve the time and cost of doing business with Central Asia

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and Europe. Prime Minister Modi met the Supreme Leader Ayatollah Khamenei and President
Rouhani. Joint Statement titled ―Civilizational Connect, Contemporary Context‖ was released. In
December 2017 the Iranian president Hassan Rouhani inaugurated the first phase of the Chabahar
port, opening a new strategic route connecting India, Iran, and Afghanistan bypassing Pakistan. This
is the first port that India will operate outside its territory.

India‘s trade with Iran is dominated by import of Iranian crude oil, which continued despite
sanctions. The bilateral trade between the two countries was US$ 12.89 billion during 2016-17. India
imports petroleum and its products, inorganic and organic chemicals, fertilizers, fruits and nuts, glass
and glassware, natural and cultured pearls, precious and semiprecious stones, etc. and exports rice,
tea, iron and steel, organic chemicals, metals, electrical machinery, pharmaceuticals, etc.

Gulf Cooperation Council (GCC): The GCC was formed in May 1981 by the six Gulf monarchies of
Saudi Arabia, Kuwait, United Arab Emirates (UAE), Qatar, Bahrain and Oman. GCC states are all
Sunni and conservative Islamic monarchies, opposed to Iranian Shia revolution and, in recent years,
have come under increasing pressures from extremist Islamic groups and terrorists. This has created a
common ground between these countries and India. The GCC has also been among India‘s top
trading partners. More than 42 per cent of India‘s oil imports come from the six Gulf Cooperation
Council (GCC) states; among India‘s top five oil suppliers three are GCC states – Saudi Arabia is the
largest supplier of crude and Qatar the largest supplier of natural gas. GCC is critical for India‘s
energy security.

The GCC is India‘s largest regional trading partner. Bilateral trade was $104 billion trade in 2017–
18. The GCC accounts for more than 54 per cent of India‘s foreign-exchange remittances amounting
to $37 billion in 2017. Prime Minister Narendra Modi visited UAE in August 2015, his first to Gulf
and first visit by an Indian Prime Minister to UAE after a gap of 34 years. The two sides aimed to
increase bilateral trade by 60 per cent in the next five years and UAE intends to invest $75 billion
into India‘s infrastructure development.

Indians are the largest expatriate community in the Gulf States – an estimated 7.6 million: 2.8 million
in Saudi Arabia and 2.6 million in the UAE. They remit huge amount of foreign exchange earnings
which is crucial for the emerging power India. The safety and security of the Indian nationals is an
important foreign policy priority for India. Due to security reasons thousands of Indian expatriates
had to be evacuated from conflict-prone Iraq, Kuwait and Yemen in the past. In recent times these

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traditional relations have come to include security and defence cooperation. India has entered into
‗strategic partnerships‘ with Gulf countries on issues like counter-terrorism, money laundering, cyber
security, organized crime, human trafficking and anti-piracy.

Check Your Progress Exercise 4

Note: i) Use the space given below for your answer.

ii) See the end of the unit for tips for your answer.
1) Describe India‘s relations with the GCC.
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11.6 LET US SUM UP

Central Asia and West Asia are distinct regions with different dynamics. Both have close
geographical, historical and cultural links with India. India has vital political, strategic and economic
stakes in these two regions. Central Asia has emerged as an arena of intense rivalry among major
global and regional powers. This is called the ‗new great game‘ reminiscent of the ‗great game‘
played by imperial Britain and Czarist Russia for control and expansion over Central Asia. It is also
witness to an upsurge in religious extremism and international terrorism. These have serious
implications for India‘s security.

India is heavily dependent on oil imports and remittances on West Asia, in particular the Gulf
countries which is home to some eight lakh Indian citizens. High consumption levels in the countries
particularly the GCC countries and India‘s growing export in the age of liberalization and

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globalization have created immense opportunities for Indian business and industry. No doubt, India‘s
presence and influence in this region would be a crucial step in the direction of it becoming a global
player. West Asia is at the heart of India‘s ‗extended neighbourhood‘ policy.

11.7 Some Useful References

Ziegler, Charles E. (Ed.), Civil Society and Politics in Central Asia, The University Press of
Kentucky, Kentucky, 2015.
Isaacs, Rico & Alessandro Frigerio , Theorizing Central Asian Politics: The State, Ideology and
Power, Palgrave Macmillan, 2019.
Burghart, Daniel L. & Theresa Sabonis-Helf , Central Asia in the Era of Sovereignty: The Return of
Tamerlane?, Lexington, US, 2018
Omelicheva, Mariya Y. , Democracy in Central Asia: Competing Perspectives and Alternative
Strategies, The University Press of Kentucky, Kentucky, 2015
Roy, Meena Singh (Ed.), Emerging Trends in West Asia: Regional and Global Implications,
Pentagon Press , 2014
Singh, Sanjay (Ed.), West Asia in Transition, Institute For Defence Studies & Analyses, Pentagon
Press, 2018.
Abhyankar, Rajendra & Azadeh Pourzand , Protests and Possibilities: West Asia and India, Gateway
House Research Paper No. 8, March 2013.

11.8 ANSWERS TO CHECK YOUR PROGRESS EXERCISES

Check Your Progress Exercise 1
1) Your answer should be based on subsection 11.2.3.
Check Your Progress Exercise 2
1) Your answer should be based on subsections 11.3.3 and 11.3.5.
Check Your Progress Exercise 3
1) Your answer should be based on Section 11.5 and subsection 11.5.1.
Check Your Progress Exercise 4
1) Your answer should be based on subsection 11.5.2.

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