GCC RELATION WITH CHINA AND INDIA

Running head: GCC RELATION WITH CHINA AND INDIA
GCC Relation with China and India
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GCC RELATION WITH CHINA AND INDIA1
EXECUTIVE SUMMARY
The aim of this study is to examine the relation of the Gulf Cooperative Council (GCC) with the
China and India. The emerging economies like India and China are essential for the energy
importers of the Gulf countries. On contrary, these countries also dependent on the GCC for their
growing energy requirements. This paper analyses the reason behind the Look East policy of the
GCC. It also examines the role of the rising power India and China on the GCC. This paper
discusses the suggested strategies for strengthening the relationship between the GCC and India.
It also emphasizes on balancing the relation between East and West.

GCC RELATION WITH CHINA AND INDIA2
Table of Contents
Introduction......................................................................................................................................3
Reasons for Look East policy of GCC........................................................................................4
Rising power of India..................................................................................................................5
Rising power of China.................................................................................................................7
Gulf and India relation.................................................................................................................8
Gulf and China relation.............................................................................................................10
Suggested strategy to balance relations between West and East...............................................11
Suggested strategy to enhance relations with India...................................................................12
Analysis.....................................................................................................................................14
Conclusion.....................................................................................................................................15
References......................................................................................................................................17

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Introduction
In the Gulf, the name of the Cooperation Council for the Arab States is the Gulf of
Cooperation Council (GCC). It was founded in 1981 by signing a charter by all member
countries. It is a regional intergovernmental economic and political union, which includes all
Arab states of the Persian Gulf and excludes Iraq (Kapiszewski, 2017). These are United Arab
Emirates (UAE), Saudi Arabia, Qatar, Oman, Kuwait and Bahrain. Headquarter of the GCC in
capital city of Saudi Arabia, Riyadh. In 2011, the organization transformed into a Gulf union
from the GCC, which strengthened the military, political and economic cooperation. The GCC
states are mainly dependent on oil industry. Thus, it took various measures in order to diversify
and reduce the dependency on oil sector. There is a strong relationship between the GCC and
Asian countries China and India. India is a South Asian country. In addition, China is an East
Asian country. This paper analyses the relation of the GCC with China and India. It also aims to
examine the reason behind Look East policy of the GCC (Ozturk & Al-Mulali, 2015).
The objective of this policy is to intensify the association of the GCC with two emerging
countries of the world. Moreover, both of these emerging countries are growing stronger and
establishes itself as rising power. Assessing the rising power of these two economies will help to
understand their contribution in the GCC. The association between these two countries and the
GCC is mainly depends on the trade related to crude oil. Apart from this, many initiatives had
been taken by the GCC, China and India to strengthen the economic and political cooperation.
Therefore, this paper examines the relation of India with the GCC. Moreover, it also includes the
relation of the GCC with the China (Naufal & Genc, 2014). It is important to balance the
relationship between West and East. Hence, this paper suggests some strategies which will create
a balance between West and East. It also emphasizes on the strategies that had implemented.

GCC RELATION WITH CHINA AND INDIA4
Moreover, Close ties with India benefits both the parties such as the GCC and India. Therefore,
this paper suggests strategies to enhance relation between India and the GCC. It is highlights the
existing policies. It also investigates the contribution of the India in the growth of the UAE.
Reasons for Look East policy of GCC
The trade relation between the GCC and Asian countries have grown substantially over
the last few years. Therefore, the Asian countries took the place of Europe and US in terms of
trade dependence. Moreover, 60% of the total international trade of the GCC belongs to Asian
countries (Gcc-sg.org, 2019). Likewise, these Asian countries and the GCC possess an important
place in the world trade. Asian countries and the GCC have recognized for its big exports. The
manufacture of goods and exports has witnessed in the Asian countries. On the other hand, the
GCC is known for its energy exports. Therefore, the trade between these two regions will
enhance the growth for the GCC and Asian countries. The major emerging economies include
India and China. To boost the relation of the GCC with India and China, Look East policy
adopted by the GCC. It will bring more cooperation in the field of economic and political
development (Deepak, 2018)t. Therefore, emergence of these two global powers have significant
implication on the GCC. Even for the oil importers of the Asia, Gulf countries are equally
important. Trade plays a major role for the development of all countries. Thus, the reliable
history of trade between Asian countries and the GCC, initiated the adoption of the Look East
policy.
The GCC countries are known as the leading partners of the Organization of Petroleum
Exporting Countries (OPEC). Moreover, around 30% of the proven oil reserves of the world are
located in the GCC countries. Therefore, the GCC countries will be able to fulfill the growing
energy demand if the Asian countries. In addition, for the development of the emerging

GCC RELATION WITH CHINA AND INDIA5
economies of the Asia, enormous energy is required. Hence, the Look East policy acted as a
trade booster. It also ensured the energy security for these emerging countries. On the other hand,
GCC also considers Asian countries as the most vital strategic market for its energy exports
(Barston, 2014). As US took policies to establish itself as an energy-sufficient country. The focus
of the GCC countries shifted towards the increasing demand of oil in China and India. On
contrary, the GCC countries were also able import goods from these manufacturing giants. It
helped in the growth and development of the GCC countries.
Rising power of India
The significance of the development countries scaled up in the finance, trade and
production. Many investors from foreign countries wanted to invest in developing countries. It
further boosted the international trade. International trade is considered as the dynamic comment
of the economic growth and development. In recent years, India improved its performance in the
manufacturing sector of the country. Thus, it enabled the country to export goods produced in the
country. In addition, it also required enormous amount of energy in order to meet the rising
energy demand in the country. The country emphasized on the growth of the trade and
investment. It also took many steps in this regard. It initiated various bilateral ties with the
countries around the word (Alam & Ahmed, 2017). Therefore, India can be a most lucrative
export market for the GCC countries. In addition, it opens up the trade relation between two
parties. The relation of the India in terms of trade is gradually strengthening. The exports and
imports between these two parties resulted in economic growth for both participants.