Monday 19 February 2018

Modi’s West Asia Outreach


Keen on sustaining the impetus generated on his first visit to UAE in 2015, Modi travelled to Abu Dhabi and Muscat after completing his first leg of tri-nation tour (to Ramallah).  Marking Modi’s second visit to UAE, the iconic Bhurj Khalifa was lit up in tricolors on Feb 10th. West Asia is India’s largest trading region and clearly energy security, counter terror cooperation and infrastructure investments dominated the agenda.

Prime Minister Modi was extended a ceremonial reception at the airport by Crown Prince Mohamed bin Zayed Al Nahyan, who was honored chief guest at the Republic Day celebrations in 2017. Both leaders reviewed the progress of implementation of the Comprehensive Strategic Partnership signed in 2017 and expressed a desire to deepen cooperation in combating terror and counter terror operations. Lauding the efforts of the UAE-based Sawab and Hedayah centres in countering the extremist ideologies, both sides strongly condemned terrorism and extremism in all forms and manifestations. Indian leadership aspired to emulate the work of counter terror platforms operating in UAE.

UAE is the third largest trading partner of India and second biggest destination of Indian goods. It has invested over $11 billion in India. India and UAE signed five MoUs including a pact offering 10% stake in offshore Lower Zakum concession for a period of 40 years (from 2018 to 2047). Sixty percent of stake will be retained by Abu Dhabi National Oil Company (ADNOC) and remaining 30% is allotted to international oil companies. As per the agreement signed between ADNOC and Indian Strategic Petroleum Reserves Limited in 2017, ADNOC is all set to send three shipments of crude oil to fill half of the 1.5 million tons of reserve built at Mangalore for strategic reserves. In a bid to establish its ground presence in India, the third largest oil consuming nations, ADNOC gave up the strategic reserves storage in South Korea. Other MoU’s include those on institutionalization of contractual employment of Indian workers in UAE to curb human trafficking, technical cooperation in railway sector, financial cooperation between stock exchanges and establishment of logistics park at Jammu.  To strengthen maritime cooperation, countries have agreed to conduct first ever joint Naval exercises off the shores of Abu Dhabi this year.

Modi laid foundation stone for the construction of first ever Hindu temple at Abu Dhabi in an area of 55,000 sq mts. By allocating land for temple construction, UAE exuded its commitment towards building a pluralistic society. The hand-carved stone temple is expected to be completed by 2020. Ground breaking ceremony for the temple in UAE, home to 3 million Indians is a historic moment for Indians. Prime Minister Modi delivered key note address at the World Development Summit, Dubai themed on “Technology for Development” and held separate meeting with select business leaders from GCC (Gulf Cooperation Council). Later he addressed the Indian community at Dubai.

On his final leg of three-nation tour, Modi made a maiden visit to Oman, a conflict-free nation in the Gulf since 1976 and ruled by the longest serving Arab leader President Qaboos Bin Said al Said ever since. Qaboos wrested power from Sultan Said bin Taimur, his father by dislodging him in a coup with the help of British. Taimur was educated in Mayo College, Ajmer, Rajasthan. India-Omani ties rooted in geographical, historical, and religious connect were further strengthened by Bhatia community of Gujarati traders who have settled in Muscat as early as 1507. In recognition of iconic services rendered by one such Gujarati family, Omani Sultanate conferred the title of Sheikh on their current descendent Kansaki, who is now the only Hindu Sheikh.

India had strong relations which Oman which eventually graduated into a strategic partnership.  Oman played a crucial role in India’s west Asian outreach for decades, is a member of IORA (Indian Ocean Rim Association). Oman was visited by four Indian Prime Ministers- Rajiv Gandhi, PV Narasimha Rao, Atal Bihari Vajpayee, Manmohan Singh before Modi. Since 2008, Oman has been extending support to India’s anti-piracy operations. The navies of both countries are conducting bilateral exercise since 1993 and biennial bilateral exercises with all the three forces have commenced in 2015. Indian Navy and Airforce use Oman’s Salalahthe for refueling and repair. Further both countries have effectively cemented relations through high level diplomatic and defence visits. Oman was also the first nation to send high-level ministerial delegation to greet the Modi government in June 2014. During Iranian sanctions, India and Oman worked together to construct a gas pipeline between India, Oman and Iran to overcome the tenuous financial embargo.

Oman is now increasingly viewed as a valued partner by India. Indian Ocean region (IOR) has traditionally been India’s region of influence. China’s strategic expansion and ambitious attempts to establish bases along the Sea Lines of Communication in the Indian Ocean is now threatening India’s exclusivity in its own backyard. Oman’s stable political landscape, its strategic location and strong ties with New Delhi bodes well with India’s ambitions to expand its maritime presence.

India has now secured access to Port of Duqm, for military use and logistics purposes. Located along the South Eastern coast of Oman, overlooking Arabian Sea and Indian Ocean and in the vicinity of Gwadar port, Port of Duqm has unique strategic advantage. Duqm is an artificial port, developed exclusively for economic use. Agreement with UAE for joint naval exercises in Persian Gulf and obtaining access to use Duqm for military purposes will enhance India’s strategic presence in the region. Realizing the unique geographical positioning of Duqm, US approached Oman to use the port in 2013. China has invested $350 million in Duqm Port Commercial Terminal and Operational Zone Development Project in August 2016. In August 2017, Oman signed a MoU with Britain allowing Royal Navy to use Port of Duqm, access its facilities and dock vessels. Since last year, there is an increase in Indian activities at Duqm. In September 2017, India sent an attack submarine, two reconnaissance aircrafts and docked a naval ship to enhance surveillance and cooperation. Though little late, India has finally woken up to the maritime challenges posed by China. By gaining access to Duqm, India can checkmate China’s strategic maritime expansion spree and can cutoff flow of Chinese supplies at the Gulf of Oman in times of war. In 1950, Omani Sultan offered Gwadar to India, but Pandit Nehru turned it down expressing concerns in defending it from Pakistan.

China steadily escalated its maritime presence in Indian Ocean Region (IOR) by taking over Gwadar, establishing first overseas military base in Djibouti (Horn of Africa) and all geared up to set up a second port at Jiwani near Karachi. Overcoming strategic reticence, India recently signed an agreement with Seychelles to develop airstrip and a base at Assumption Island, had a similar pact with Maldives for Agalega Islands of Maldives and having signed logistics agreement with the US and Singapore, India is now keen on sealing a LEMOA kind of agreement with France during Emmanuel Macron’s upcoming visit to India. Though China’s strategic hold of its bases is far more encompassing and robust, India is making fervent attempts towards maritime power assertion. Now, MoU on Port of Duqm is a valuable addition to India’s maritime policy.

Keen on strengthening the existing partnership framework, India and Oman signed 8 MoUs on legal and judicial cooperation, mutual visa exemption policy, health, outer space, tourism and military cooperation. Economic ties too received fresh impetus with Omani Sultanate inviting Indian companies to invest in the SEZs of Duqm, Salalahthe and Sohar. With bilateral trade witnessing 3.6% increase, both countries are fast-tracking finalization of bilateral investment treaty. Modi addressed the Indian Community in Oman from the Royal Gallery of Qaboos Sports Stadium exclusively reserved for the President, he hailed the contributions of hard-working India Diaspora towards Oman development. Oman has the largest Indian expatriate community. Before wrapping up his visit to Oman, Modi visited Sultan Qaboos Grand Mosque and the 125-year-old Bhagwan Shiva temple built by Bhatia Community.

Oman stayed away from the regional kerfuffle’s and remained neutral to Yemeni War and Saudi Arabia’s trade embargo on Qatar. Like India, Oman is a non-aligned state and is carefully balancing relations with Saudi Arabia and Iran without slipping into the storm. As of now, there is close semblance between India and Oman with regards to strategic interests. India’s relations with Oman during Qaboos regime have been extremely cordial. But with concerns of Qaboos frequent ill health plaguing the regime, a suitable succession plan will be in place. India should eventually ramp up ties with Oman in the Post-Qaboos scenario as well. Modi’s West Asian outreach marked by dehyphenation of relations, retaining strategic autonomy, bolstering India’s maritime interests and enhancing defence and energy cooperation reflected his pragmatic foreign policy approach.


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