It is no longer just about filling gas tanks or securing crude oil supplies. The relationship between India and the Arab world, particularly the Gulf Cooperation Council (GCC) nations, has evolved into one of the most critical strategic partnerships of the decade. Following a landmark year in 2025, New Delhi has successfully transformed its ties with the Gulf from a simple buyer-seller dynamic into a robust alliance that anchors India’s energy and food security for the long haul.
With Prime Minister Modi’s historic visit to Saudi Arabia in April 2025 resulting in a staggering $100 billion worth of agreements, the blueprint for a new economic corridor is officially in motion. Here is how these Arab nations are fueling India’s growth engine.
The Energy Backbone: From Fossil Fuels to Green Hydrogen
While the world transitions to green energy, the reality remains that India, as Asia’s third-largest economy, still needs a steady flow of conventional power. The GCC countries continue to be the heavy lifters here, accounting for over half of India’s crude oil imports. Saudi Arabia remains a cornerstone of this stability, ensuring that India’s industrial engine doesn’t stutter as demand peaks.
However, the partnership has become far more sophisticated. Qatar has locked in a long-term future with India, signing a contract to supply 7.5 million tonnes of Liquefied Natural Gas (LNG) annually all the way through 2044. But the real game-changer lies in future tech:
- Green Hydrogen: India and Saudi Arabia are now officially collaborating on green hydrogen projects following an MoU signed in October, aiming to make both nations leaders in clean fuel.
- Grid Interconnectivity: Imagine an electric grid stretching across the sea. A feasibility study is currently underway to connect the electricity grids of India and Saudi Arabia. If successful, this would allow India to tap directly into the region’s vast power reserves, enhancing reliability like never before.
Critical Minerals and Nuclear Power: Fueling the Tech Revolution
Energy security isn’t just about what goes into a combustion engine; it’s also about what powers the batteries of the future. The year 2025 marked a massive pivot toward securing “Critical Minerals”—the raw materials essential for Electric Vehicles (EVs), renewable energy tech, and advanced manufacturing.
In February 2025, India signed crucial MoUs with Saudi Arabia for joint exploration and technology transfer regarding these minerals. This followed a similar strategic move with the UAE in September 2024 to secure supply chains. Furthermore, the UAE and India have deepened their bond over nuclear energy. By signing an MoU to enhance civil nuclear cooperation, both nations are sharing expertise and developing human resources, effectively diversifying India’s energy mix away from coal and reducing the carbon footprint.
Food Parks and a $100 Billion Strategic Shield
While energy dominates the headlines, food security has quietly become a pillar of this alliance. India and the UAE have agreed to cooperate on the development of massive food parks. This initiative is designed to combine Indian agricultural output with Gulf investment and technology, ensuring a stable food supply chain for both regions amidst global uncertainties.
This comprehensive approach was cemented during the Prime Minister’s April 2025 visit, where agreements totaling $100 billion were signed. These deals span infrastructure, energy, and critical minerals, underscoring that the Gulf nations are no longer just trading partners—they are essential stakeholders in India’s national security and economic future.
What’s Next? As these agreements move from paper to implementation in 2026, all eyes will be on the execution of the sub-sea power grid and the joint exploration of minerals. For New Delhi, the road to a $5 trillion economy is being paved, in large part, by its partners across the Arabian Sea.
Last Updated: 18 January 2026
