Prospects of India's relations with the gulf cooperation council in the twenty first century

The paper review the prospects and challenges of India-GCC relation in the context of recent developments in the international arena. Economic ties have been the backbone of India-GCC ties and it continues to flourish. Political differences over regional international issues have not been an impediment in the India-GCC economic ties. The paper conclude that it is necessary to develop political warmth to have cooperation in the development activities as well. The Gulf Cooperation Council (GCC) was formed in 1981 consisting of six Gulf monarchies Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE). The economic dimension of India's Gulf policy has become more pronounced in recent years. Considering these facts into account, the present-day trade arrangement between India and the GCC on the basis of term contracts would increasingly have to give way to substantial relationships based on investments and joint ventures in each other's energy, industry, infrastructure and services sectors. The relations did not improve much due to India's reluctance to condemn the Soviet invasion of Afghanistan and its neutrality in the Arab-Persian conflict that started in 1979. The Arab-Persian conflict that led to the formation of GCC was primarily an economic cooperation.