India
traditionally enjoyed cordial relations with all Gulf states. India
has historical, geographical, cultural relations, besides people to
people contact with Gulf countries. Centuries old direct trade and
social interaction between India and GCC states has historical
background, which further got strengthen with the oil exploration and
steady economic development in the Gulf states. This further led to
India’s increasing presence in the Gulf countries as well as
imposing trade relations with them.

Significantly India’s oil and gas dependence on the Gulf states for the year
2012-13 was 62.4 percent and for the year 2013-14 it was 61 percent.
Meanwhile, India’s crude oil import for the year 2013-14 stood at
189.2 Million Metric Tons (MMT), out of which 115.9 MMT of oil was
imported by India from the Gulf countries.

Before
oil discovery and its exploration for commercial use by Gulf states,
Indians presence was there mainly as a part of two-way trade visits
and their migration to these states was virtually meager. While
Indian workers were present in Kuwait in 1930, it was in the year
1935 that Indian workers were legally brought to a Gulf State, when
some 45 skilled and unskilled laborers from India were recruited for
Bahrain by the then a Bahraini petroleum company viz: Bahrain
Petroleum Company (BAPKO). Subsequently, in July 1936, BAPKO opened
its recruitment office in Mumbai for Indians’ employment in
Bahrain.

Likewise,
discovery of oil in Saudi Arabia in 1930s later led to the beginning
of Indian workers’ arrival in the Kingdom. Meanwhile, modern Oman was
established in 1970 and Qatar and UAE were established in 1971
respectively, so Indians’ already presence in these countries and
other Gulf states started growing tremendously due to expansion of
oil industry and later emergence of internal and external trade
between Gulf states and India as well as rest of the world.

The
rapid migration of Indians, during the last four decades to the Gulf
countries can be gauged from fact that in the year 1975 there were
only 2, 577, 00 Indian migrants in Gulf states, whereas in the year
2012 their number increased to 56,87,032. In 1975, while minimum
number of Indian migrants were 17,250 Indians in Bahrain and maximum
were 1, 07,500 in UAE, in 2012 minimum Indians were present in
Bahrain totaling 3,50,000 and maximum Indian migrants numbering
17,789,00 were in Saudi Arabia.

The
phenomenal increase of Indians, including laborer, professionals and
businessmen in Gulf states in last four decades was primarily due to
rapid development in the field of oil and gas, infrastructure, local
trade, education, health services, information technology (IT), human
resources development and financial institutions related fields in
the GCC countries. However, major chunk of over 40 per cent Indian
migrants to the Gulf States are still engaged in the field of
construction and related infrastructure development sector. Notably ,
most of the Indian migrants are from South India and amongst them
over 40 per cent belong to Kerala only.

With
regard to contribution of Indians from Gulf states in the growth of
Indian economy, India’s highest amount of remittance comes from
Gulf countries. In the year 2012, Indians from Gulf states sent a
combined remittance of US $ 37.7 billion, which was almost half of
the total remittance received by India during the said year.
Significantly, one fifth of total remittance was from Keralites,
mostly working in the Gulf States.

Meanwhile,
India’s trade with Gulf countries centrally remained import of oil
and gas and export of leather goods, textile, garments, medical
appliances, and food stuffs. During the year 2012-13 India’s total
trade with these countries amounted to US $159,145.71 million which
included worth US $108,092.06 million of imports and US $51,053.65 million worth exports.

Till
recently UAE was India’s biggest trade partner, the place which has
now been taken over by China. Meanwhile, investment of GCC states
into India was worth US$ million 2,639.5 by the early year 2012 and
UAE was tenth largest foreign investor in India. Incidentally, GCC
countries account for 15 per cent of India’s exports, 21 per cent of
India’s import bit only 1.5 per cent of Foreign Direct
Investment (FDI).

As
regards to country-wise specifics, in 2012, the highest number of
Indians in the Gulf states were located in Saudi Arabia, with the
strength of 1,789,000 and they remitted US $8,3812 million to India.
Total trade with Saudi Arabia amounted to US$ million 43,783.89. in
2012-13 which included Indian exports worth US $9,765.78 million and
import worth US $33,998.11 million.

In
UAE there were 1,750,000 Indian migrants in 2012, the second highest
amongst Gulf States, and they remitted US $ million 15,685, highest
amongst Gulf States. Total trade with UAE was worth US $75,455.01
million. Import worth US$ million 39,138.36, exports to the tune of
US $36,316.65 million.

In
Oman and Kuwait there were 718,642 and 579,390 Indian migrants in
2012 and they remitted US$ million 2,614 and US $2,947 million
respectively. While India’s total trade with Oman in 2012-13 was of
US $4,609.21 million, India’s export was worth US $2,599.49 million
and import was US $2,009.72 million, whereas India’s total trade
with Kuwait was to the tune of US $17,649.21 million,which included
export for US $1,061.08 million and import worth US $16,5888.13 million.

There
were 500.000 and 350,000 Indian migrants in Qatar and Bahrain
respectively in the year 2012 and they remitted US $2,294 million and
US $760 million respectively to India in the said year. During the
year 20120-13, total trade between India and Qatar was US $16,380.26 million which included India’s export worth US $687.18 million
and import worth US $15,693.08 million. India’s total trade with Bahrain was
worth US$ million 1,268.13,India’s export for US $603.47
million and import from Bahrain was worth US $664.66 million.

Since
India and Gulf states are separated only by the Arabian sea, these
countries can be described as immediate neighbor of India and have
immense significance with regard to bilateral relations, especially
related to economic and security. Political stability and security in
Gulf States are of significance importance to India in view of
meeting its energy requirements and presence of over six million
Indians in these states.

Meanwhile,
GCC states also appreciate India’s growing regional economic power
and King Abdullah of Saudi Arabia’s visit to India in 2006 which
happened to be the first visit by any Saudi monarch to India after
about 50 years is worth mentioning.

While
Indian migrants are playing a major role in development of Indian
economy by remitting almost half of the country’s total remittance,
they are also immensely contributing for the economic development of
Gulf States and have earned admiration and respect too. However about
50 per cent of the Indian migrants to the Gulf countries belong to
labour class and has been immensely suffering for several reasons,
including extreme hot summer months, non-payment of salaries for
months together, inadequate medical facilities, frauds in employment
visas and, denial of home leave.

The
hardships being faced by the Indian laborer in Gulf can be gauged
from the fact that since 2011, about 700 Indian labors have died in
Qatar only. The deceased Indians were involved in an ongoing
construction work, which is related to the construction of
infrastructure for hosting of FIFA World Cup by Qatar in the year
2020. 

Although, Ministry of Overseas Indian Affairs and our Missions
in Gulf states look after the interest of overseas Indians, but a lot
is required to be done for the welfare of Indian labor migrants in
the Gulf countries, majority of whom work under inhuman conditions.