Tuesday 12 April 2016

Pioneering India’s Strategic Engagement with Saudi Arabia


India’s West Asia moment has finally arrived with strategists reckoning Prime Minister Narendra Modi’s visit to Riyadh as “spectacular”. Modi’s resounding victory at the General Elections, 2014 was meted with a tepid response from the Middle East who were largely skeptical of his Hindutva affiliations. Moreover his unabashed fondness for Benjamin Netanyahu drained off West Asia’s interest in the new government. Modi having quickly learnt the diplomatic ruses, shifted gears and formally warmed up to the Middle East by meeting the Saudi Arabia’s sixth king, the late King Abdullah bin Abdul Aziz Al Saud on the margins of G-20 summit at Brisbane. While Modi’s visit to UAE in August 2015 was a curtain raiser to India’s tryst with West Asia, his current visit to Riyadh, the last leg of his three-nation tour consolidated New Delhi’s ties with the Gulf. Modi’s Saudi Arabia tour was marked by propitious beginnings with Saudi and the US jointly imposing sanctions on four Pakistani individuals and terror outfits Laskhar-e-Toiba (LeT), Al Qaeda and the Taliban.

India had trade links with Saudi Arabia dated back to seventh century AD. Arabs known to be pioneers of International commerce started trading along the Malabar Coast. The indomitable cultural linkages in the form of annual Haj pilgrimage by millions of Indian Shiite and Sunni Muslims vitally connects India to Saudi. India always had cordial relations with Saudi Arabia despite Riyadh’s support to Pakistan. India’s interests in Middle East is very crucial since the regions is source of oil, jobs, remittances and military equipment. Of the 7.3 million Indians working in the Gulf who constitute 64% of the total-non-resident Indians, 2.8 million Indians live in Saudi Arabia. The remittances of over $36 billion, from Gulf accounts for 52% total remittances of India. India is an oil-deficit country and imports nearly 80% of all its oil and Saudi Arabia is its largest supplier.

Diplomatic ties with Saudi Arabia were heralded largely by Delhi Declaration (2006) and Riyadh Declaration (2010). Late Saudi King Abdullah became the first head of House of the Saud to visit India in 51 years as the chief guest for Republic Day parade in 2006. In 2006, both countries signed a MoU to actively cooperate in combatting crime including fighting against terrorism, extremism and criminal elements. Later in 2010 Prime Minister Man Mohan Singh on his visit to Saudi Arabia reviewed implementation of Delhi Declaration and formally elevated the ties to a strategic partnership encompassing security, defence and political areas and signed the Riyadh Declaration in 2010. Living up to the objectives of cooperation on counter terrorism, Saudi Arabia deported Syed Zaibuddin Ansari aka Abu Jundal, a master mind of 26/11 Mumbai attacks and 2010 Pune attacks to India in 2012. In December 2015, Saudi has deported a LeT terrorist Mohammed Asadullah Khan. More recently in February it handed over Mohammud Abdul Aziz, the kingpin of the jihadist movement in Hyderabad. In a major boost to the Indo-Saud relations, in August 2015, Indian Air Force made an inaugural staging at the King Fahad airbase in Taif, en route UK for a multinational exercise. Modi as a mark of respect declared a day of mourning when King Abdullah died in January 2015 striking a unique chord with Saudi Arabia. When India staged Operation Rahat to evacuate Indians from the war struck Yemen, Saudi regime extended exemplary support to India facilitating the safe evacuation of around 5000 people. In an effort to give impetus to the theme of Connecting Asia espoused at the Raisina Dialogue, Indian Foreign Secretary reiterated India’s commitment of matching the “Act East” with “Think West” initiative.

Modi’s visit to Riyadh comes at a time when the region is thrown into chaos, turmoil and despair. Entire Middle East is going through a phase of intense turbulence due to Syrian crisis, Yemen war, plummeting oil prices and intense rivalry between Saudi and Iran along sectarian lines. Middle East has become region of intense diplomatic activity of late, with President Xi Xinping touring Egypt, Iran and Saudi Arabia. This was followed by Pakistan’s Prime Minister and Army Chief Visit to Saudi Arabia and Iran. Modi’s perfectly timed bilateral visit infused fresh energy and momentum into the Indo-Saud relations. India’s aspirations of connecting to West Asia is in line with Saudi Arabia’s looking east policy. Plunging global oil prices, diminishing oil demand and the huge financial encumbrance of funding wars against Yemen and Syria gobbled up much of Saudi’s petro dollars.  Saudi Arabia is distraught over US retrenchment, following its energy self-sufficiency, thanks to the shale gas revolution. Riyadh is puzzled over its traditional ally’s embrace with its adversary Iran. With traditional alliances in the region going through major flux, Middle East is virtually on its own and desperately seeking new opportunities to refurbish. Stung by the economic depression of 2008, major European countries failed to recover financially. Bracing stagnant economic growth, European nations ceased to be oil guzzlers. Saudi Arabia is now looking for the East Asian countries whose economic engines are rolling and are oil thirsty. Sinking oil prices brought about a paradigm shift in Saudi’s strategic thinking which is keen on investing huge amounts of sovereign funds in developing economies. Besides, Saudi Arabia is bearing brunt of patronizing the Wahhabi culture and the growing concerns of terrorism is keeping it on tenterhooks. Rise of IS (Islamic State) is threatening the Arab monarchies.

Simultaneously, any disaster overwhelming the Middle East has huge repercussions on India as energy flows, remittances, livelihoods of millions of Indian Diaspora will be threatened. Overpowering the incipient strategic inhibitions, Modi cogently sealed cooperation with Saudi Arabia on three issues - counter terrorism, energy cooperation, economic and investment ties. In his two- day long bilateral-Prime Minister Narendra Modi and Custodian of Two Mosques in Mecca and Madina, King Salman bin Abdul Aziz issued a joint statement that reinforced a new spirit of strong friendship. Both the leaders emphasized on the need to consolidate bilateral strategic engagement for “promoting peace, stability and security in the region”. They agreed to intensify cooperation in counter-terrorism operations, cyber security and defence cooperation by conducting joint exercises, exchange of visits of ships, aircrafts, military personnel and experts. It was decided to convene second meeting of Joint Committee on defence cooperation at Riyadh, to strengthen maritime security in Gulf and Indian Ocean Region and promote collaboration for humanitarian assistance and evacuations during emergencies. Condemning terrorism in all forms and manifestations both parties agreed to enhance cooperation in combatting terrorism at bilateral and multilateral level and Saudi Arabia agreed to work towards adoption of Comprehensive Convention on International Terrorism at UN. They affirmed that terrorism be delinked from religion and called on all states to cut off support and finances to the terror groups operating from their territories.

A MoU was signed between the Financial Intelligence Unit of India and its Saudi counterpart on exchange of information with regards to terror and crime related money laundering. Highlighting new initiatives taken by Government of India to improve ease of doing business, Modi welcomed Saudi Arabian companies to invest and participate in Smart Cities, Digital India and StandUp India initiatives. A framework agreement was signed between the Saudi Arabian General Investment Authority (SAGIA) of and Indian Investment Authority to facilitate investment from private sectors in both countries. Both sides agreed to transform the energy related ties from the existing “buyer-seller relationship” to investing together in joint ventures in various petrochemical complexes and for jointly exploring in India, Saudi Arabia and other countries. Both leaders stressed on the need to promote collaboration in science and technology, renewable energy, information communication technology, space technology, agriculture, urban development, health care and biotechnology. They have welcomed the establishment of Joint Working Group on Consular Issues under India-Saudi Arabia Joint Commission and signed an agreement on labor cooperation for recruitment of general category labor. In all, 5 MoU’s were signed and these include a MoU on technical cooperation between Bureau of Indian Standards (BIS) and the Saudi Standards, Metrology and Quality Organization (SASO) and an executive program on cooperation in the field of handicrafts between India’s Export Promotion Council for Handicraft (EPCH) and Saudi Commission for Tourism and National Heritage. Modi took up the issue of Indian workers landing in prison for petty crimes and urged the Saudi government to sympathetically review the cases. India having emerged as one of the fastest growing economies of the World is now looked as bright spot for investments. Assuring a stable tax regime, Modi reiterated that retrospective taxation is thing of past and indicated that GST will be passed soon. Modi held talks with Crown Prince Mohammed bin Naif bin Abdulaziz bin Al-Saud, Deputy Crown Prince, Minister of Foreign Affairs, Minister of Health and Chairman of Saudi Armaco, oil Company.

King Salman extended a Royal Welcome to Modi at Al-Yamamah palace and as a mark of India’s growing recognition in the global realm, conferred country’s highest civilian honor, King AbdulAziz Sash on Prime Minister Modi. Modi gifted a gold-plated replica of the Cherman Juma-Masjid to King Salman underlining the historical trade relations between both the countries. The Masjid reminisced peaceful entry of Islam to India before it touched the shores of Pakistan and represents harmonious coexistence of different faiths in India.

Modi’s visit to the Tata Consultancy Services facility at Riyadh run exclusively by women was initially viewed with skepticism. Conscious of the rigid traditions in Saudi Arabia, Modi addressed the women as “harbinger of positive force for the World”. The elated women workers expressed their gratitude by chanting Bharat Mata Ki Jai. Modi also met Indian Workers and shared meals with them at the L&T workers residential complex in Riyadh.

Modi’s triumphant rendezvous with Saudi Arabia might truly intimidate Pakistan for reveling in the pride of being a Jihadi gateway. On the contrary, India having emerged as one of the promising economies is a favored investment destination leaving Islamabad to roil in its self-imposed imperceptible conundrum. The volume of bilateral trade between Pakistan and Saudi Arabia, a mere $6 billion pales against the economic activity between India and Saudi Arabia which stands at $39 billion. By sledging development and aggressively nurturing extremism, Islamabad is now infamous as a terror haven. While Islamabad anticipates to garner support from West Asia by playing Islam card, disoriented developmental goals may leave it rudderless.

The impetus of Modi diplomatic engagement has been spearheading India’s strategic interests. Raising above traditional moral posturing characteristic of Indian foreign policy, Modi strengthened political and security engagement with Saudi Arabia. By precariously balancing India’s ties with Saudi Arabia and Iran, Modi exuded diplomatic acumen. While Modi revved up energy cooperation with Saudi, Oil Minister Dharmesh Pradhan will be visiting Tehran facilitating ONGC’s participation in developing Farhad-B gas field and to discuss investment projects at Chahbahar port. This will be soon followed by Sushma Swaraj’s visit pushing for political ties. Prime Minister in fact initiated India’s bilateral engagement with Iran when he met Iranian President Rouhani along the sidelines of Shanghai Cooperation Organization (SCO) at Ufa, Russia last year. While Pakistan floundered its Muslim ideologue, by dallying with its arch-rival Iran and by staying away from the Operation Decisive Storm, led by Saudi Arabia, India has clearly scored a brownie point.

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