Saudi Arabia's Ascendancy and Europe's Engagement - Could They Provide India with a Counter to America's Tariff Attack?
In the face of ongoing global political tensions, India is forging ahead with its expansion of trade and strategic partnerships with Gulf countries. A key example of this is the India-Middle East-Europe Economic Corridor (IMEEC), a visionary project aimed at linking India to southern Europe via the UAE, Saudi Arabia, and the Israeli port of Haifa.
The IMEEC, backed by India, Gulf partners, the EU, and countries such as France, Italy, and Germany, is a significant strategic initiative that focuses on enhancing connectivity and trade among these key regions. Though specific details on the corridor's structure and projects are not fully disclosed, it is understood to be a major infrastructure and logistics corridor designed to facilitate faster movement of goods, energy, and services between these regions.
One of the primary benefits of the IMEEC is the provision of alternative, efficient trade routes connecting India with Europe via the Middle East, reducing transit times and costs. This initiative also supports India's energy security by enhancing supply chain links with major Gulf energy producers.
India's economic collaboration with Gulf Cooperation Council (GCC) countries, which includes Saudi Arabia, UAE, Qatar, Kuwait, Oman, and Bahrain, is marked by multiple Free Trade Agreements (FTAs) and initiatives. As of 2025, India has signed a Comprehensive Economic Partnership Agreement (CEPA) with the UAE that came into effect in 2022, resulting in a near doubling of bilateral trade by eliminating or reducing tariffs on 80% of traded goods. Negotiations are also advanced with Oman, with a free trade agreement expected to be finalized soon.
The IMEEC aligns with Gulf countries' diversification goals under visions such as Saudi Vision 2030 and UAE Centennial 2071, promoting non-oil sector growth. It also boosts Indian exports in sectors like textiles, agriculture, engineering goods, and services (including IT and professional services) through tariff reductions and better market access.
Beyond the Gulf, India is engaged in broader FTAs and trade framework expansions, aiming to position itself as a global trade hub by 2047. Strategic experts believe that India should widen its options due to uncertainty in the Western bloc, suggesting a balanced approach that includes exporting BrahMos missiles and warships to Gulf militaries, maintaining strategic engagement with Israel for high-tech access, and pushing ahead with Iran's Chabahar port and the International North-South Transport Corridor.
The Indian Navy has expanded its presence in the Gulf, holding air and naval drills with the UAE and Oman under the 'Look West' strategy. Europe, due to increased reliance on Gulf energy supplies, sees this as an opportunity to strengthen economic and political links, a trend India can leverage. Nearly 60% of India's oil and 70% of its gas come from the Gulf region.
In summary, India's trade and strategic partnerships with Gulf countries, underpinned by ongoing FTAs and the IMEEC, represent a multifaceted effort to deepen economic collaboration, secure energy resources, and build resilient, diversified trade networks connecting Asia, the Middle East, and Europe. These partnerships provide India with a framework built on energy security, diaspora influence, and corridor-based connectivity.
- The IMEEC, a strategic initiative focusing on enhancing connectivity and trade among India, Middle Eastern, and European countries, aligns with the policies and legislation of various nations, including India, the EU, and Gulf countries such as the UAE and Saudi Arabia, as well as General News due to its potential impact on international trade and political relations.
- In the realm of politics, India's economic collaboration with Gulf Cooperation Council (GCC) countries, as evident in the numerous Free Trade Agreements (FTAs) and strategic partnerships, presents a multifaceted approach aimed at deepening economic cooperation, securing energy resources, and building resilient, diversified trade networks connecting Asia, the Middle East, and Europe, as per the general news and policy-and-legislation portions.
