India's relationship with the Gulf Cooperation Council (GCC) has been primarily based on mutual trade and business. GCC countries are the main source of energy for India and a market for Indian commodities. India's five-million-strong workforce forms a natural linkage between India and the GCC. But despite such strong trade linkages, which are still growing, political and strategic relations between India and the GCC have been found lacking. Recent years have witnessed signing of defence and security agreements between India and some of the GCC countries.
Indian presence in the Gulf region is civilizational and has developed into a vibrant relationship over the years. With the emergence of India as a large economic power and with the Gulf region simultaneously witnessing spectacular economic growth, economic trends are reinforcing mutual interdependence. While India's economic presence in the region has transformed from barter exchanges between merchants and Indian human capital, India's political presence has remained more or less subdued.
The failure of the government to stem Houthi-led violence and the involvement of the external powers in Yemen’s sectarian problems has aggravated the country’s stability. Yemen has been turned in to a theater of conflict between Saudi Arabia and Iran.
In 2007, a small piece of research by Steven Jen generated ripples about the role and significance of Sovereign Wealth Fund (SWF) in the world of finance. The term SWF was coined by Andrev Razanor in 2005, and IMF defined it as “assets held by governments in other country’s currency”. Although, SWF has a history of more than half a century, it gained currency only since 2000. SWFs have been created by the governments for different motives.
The recent three day visit of Indian Vice President Hamid Ansari to Kuwait fills a three decade diplomatic gap between the two countries. The visit was highly successful to the extent that besides interactions in the fields of science and technology, education and emphasizing the relevance of cultural exchanges, it brought international terrorism within the ambit of bilateral discussions.
During his November 2008 visit to Oman and Qatar, Prime Minister Manmohan Singh signed two memoranda of understanding with Oman and three with Qatar. The MOUs with Qatar were on defence and security, investment, energy and manpower development.
In an interesting development, the Gulf Co-operation Council (GCC) invited Iran for the first time last month to attend its summit meeting held in Doha. The GCC was established in 1981 to foster multilateral co-operation in the Persian Gulf, but had adopted an exclusionary policy vis-à-vis Iran though the latter was an important actor in regional politics and economy. The invitation to Iran seems to point to a GCC initiative to overcome differences and act together for the larger good of the region.
Houthis and external intervention in Yemen
The failure of the government to stem Houthi-led violence and the involvement of the external powers in Yemen’s sectarian problems has aggravated the country’s stability. Yemen has been turned in to a theater of conflict between Saudi Arabia and Iran.