The development of West Asia (or the Middle East) has long had a significant impact on the Indian subcontinent due to their deep historical, cultural, economic, and geopolitical ties. As West Asia embarks on transformative paths—embracing economic diversification, infrastructure modernization, and sociopolitical reforms—the ripple effects on the Indian subcontinent are unmistakable. This article delves into how the shifting dynamics of West Asia influence the Indian subcontinent, exploring the economic, political, and cultural impacts, as well as their role in reshaping bilateral relations between the two regions.
The Indian subcontinent, particularly India, Pakistan, Bangladesh, and Sri Lanka, shares strong economic ties with West Asia. Historically, this relationship was anchored in the trade of oil and gas. As West Asia moves towards economic diversification, these traditional trade structures are undergoing transformation. For decades, West Asia has been a major supplier of oil and natural gas to India, Pakistan, and Bangladesh. India alone imports more than 60% of its crude oil from countries such as Saudi Arabia, the UAE, and Iraq. However, with the advent of renewable energy, West Asia is making efforts to reduce its dependence on oil revenues, focusing on sectors such as tourism, technology, finance, and manufacturing. This shift is poised to impact the Indian subcontinent’s energy security policies, with Indian companies seeking new opportunities in West Asia’s non-oil sectors. One such example is the establishment of special economic zones and free zones in the UAE and Saudi Arabia, where Indian businesses are increasingly investing in sectors like pharmaceuticals, information technology, and real estate. These new economic avenues have opened up employment opportunities for expatriate workers and allowed Indian companies to penetrate new markets.
The Indian subcontinent, especially India, Pakistan, Bangladesh, Nepal, and Sri Lanka, relies heavily on remittances sent by millions of migrant workers in West Asia. As West Asia develops, modernizes labor laws, and automates industries, the demand for foreign labor may fluctuate, influencing remittance flows.Countries like Saudi Arabia and the UAE have undertaken workforce nationalization initiatives, such as the Nitaqat program in Saudi Arabia, to provide more jobs to their citizens. As a result, some Indian workers in low-skilled sectors may see a decline in job opportunities. However, new job opportunities in fields like healthcare, education, technology, and renewable energy may arise, enabling more skilled professionals from the subcontinent to migrate. In 2020, India received approximately $83 billion in remittances, much of it from West Asia. If development in West Asia leads to fewer jobs for unskilled labor, this could affect households across the subcontinent that rely on these funds for basic needs like education, healthcare, and housing. To adapt, countries like India and Bangladesh have started focusing on reskilling programs to make their workers competitive in evolving West Asian markets.
West Asia’s development, especially in the Gulf Cooperation Council countries, has significant geopolitical implications for the Indian subcontinent. India’s foreign policy, in particular, has been shaped by the strategic importance of West Asia due to factors such as energy security, maritime routes, and the large Indian diaspora. West Asia is a key battleground for the influence of global powers like the United States, China, and Russia. India’s foreign policy towards West Asia is driven by a delicate balancing act between these global powers and its regional interests. As China intensifies its presence in West Asia through its Belt and Road Initiative (BRI), building ports and infrastructure in countries like Iran and Saudi Arabia, India’s engagement with West Asia becomes more complex.
The Chabahar Port in Iran is a critical element of India’s strategy to counter China’s growing influence. However, India must navigate sanctions against Iran while maintaining its relationships with Gulf states and the West. Pakistan, too, is engaged in West Asian geopolitics through its involvement in the BRI and its close relationship with Saudi Arabia and the UAE, which are major economic partners. Instability in West Asia, whether due to conflicts in Syria, Yemen, or tensions with Iran, has direct implications for the Indian subcontinent. India, Pakistan, and Bangladesh have all experienced the consequences of radicalization stemming from West Asian conflicts. The Indian subcontinent remains concerned about the potential for extremist ideologies to influence domestic groups.
The development of West Asia is intertwined with efforts to counter terrorism and ensure regional stability. India, in particular, has increased intelligence-sharing and counterterrorism cooperation with countries like Saudi Arabia and the UAE. West Asia’s efforts to reform, modernize, and stabilize their countries will influence the subcontinent’s security apparatus and policies. The cultural and religious ties between West Asia and the Indian subcontinent are ancient and profound. Islam, which spread from the Arabian Peninsula to the Indian subcontinent centuries ago, continues to play a central role in shaping the cultural and religious landscape of South Asia. Today, West Asia’s evolving religious and social attitudes have a considerable influence on the subcontinent’s Islamic communities.
Saudi Arabia’s Vision 2030 initiative, launched by Crown Prince Mohammed bin Salman, aims to modernize the kingdom’s economy while also introducing social reforms. These include reducing the role of the religious police, increasing women’s participation in the workforce, and fostering a more moderate interpretation of Islam. These changes are being closely observed by Muslim communities in the Indian subcontinent, particularly in countries like Pakistan and Bangladesh, where conservative interpretations of Islam have a significant influence on society.
As West Asia embraces moderate reforms, the region’s scholars and religious authorities may encourage more progressive interpretations of Islamic law. This can inspire similar shifts in South Asia, where progressive Muslim thinkers are advocating for gender equality, educational reforms, and social justice. The exposure of South Asian expatriates to a more progressive West Asian society also contributes to evolving cultural and religious attitudes at home. West Asia’s development strategy includes substantial investments in technology, research, and innovation. The UAE and Saudi Arabia are transforming into technology hubs, emphasizing artificial intelligence, clean energy, and smart cities.
These advancements create numerous opportunities for technological collaboration with the Indian subcontinent. India, known for its technological prowess and expertise in software development, is well-positioned to collaborate with West Asia in the field of technology. Indian IT companies such as Infosys, Wipro, and Tata Consultancy Services are already expanding their operations in the UAE and Saudi Arabia. Furthermore, joint initiatives in areas like space technology, artificial intelligence, and digital infrastructure are being pursued.
The UAE’s Mars mission, for instance, was launched in collaboration with Indian scientists, showcasing the potential for deeper scientific and technological partnerships. India’s emergence as a global IT leader can complement West Asia’s ambitions to diversify its economy, particularly as countries like the UAE establish innovation hubs and tech-free zones. The financial technology (fintech) sector in West Asia is growing rapidly, with governments investing in the digitization of financial services, blockchain, and cashless payment systems. Indian fintech companies are finding new opportunities to expand into West Asian markets, leveraging the subcontinent’s large expatriate population to offer remittance services, digital banking, and mobile payments. In addition, with the rise of e-commerce and digital platforms, West Asian nations have become valuable markets for Indian startups. The cross-border flow of digital services, mobile apps, and online platforms will further strengthen economic and technological ties between the two regions.
The development of West Asia significantly influences regional politics in the Indian subcontinent. India, Pakistan, and Bangladesh have long-standing diplomatic and economic relations with West Asia, shaped by historical connections, energy dependencies, and labor migration. As West Asian countries seek to transform themselves into modern, diversified economies, the Indian subcontinent must navigate new diplomatic challenges and opportunities. India’s engagement with West Asia is no longer just about energy security and labor migration. As West Asia grows, so does India’s emphasis on soft power diplomacy. Cultural exchanges, educational partnerships, and shared history are being leveraged to strengthen ties. Indian expatriates in West Asia contribute to India’s soft power by showcasing its culture, art, cuisine, and cinema.
Additionally, India’s growing stature as a global economic power has enhanced its ability to engage with West Asia on an equal footing, influencing not only economic policies but also diplomatic relations. The strategic cooperation between India and countries like the UAE and Saudi Arabia demonstrates how development in West Asia is creating new diplomatic alliances. Pakistan’s ties with West Asia, particularly Saudi Arabia, have historically been influenced by religion and defense cooperation. As West Asia modernizes, Pakistan is recalibrating its diplomatic strategies to ensure its economic interests are safeguarded. For instance, Pakistan has deepened its relations with the GCC to secure investments in infrastructure and energy.
However, Pakistan’s close relations with Iran and Turkey also present challenges. As West Asia’s geopolitical alliances shift, Pakistan must balance its relationships with key players in the region while managing its own domestic economic and political priorities. The development of West Asia is having far-reaching consequences for the Indian subcontinent, influencing everything from trade and energy security to labor migration, culture, and regional politics. As West Asia diversifies its economies, modernizes its societies, and strengthens its technological capabilities, the Indian subcontinent stands to benefit from new economic opportunities, enhanced technological cooperation, and deeper diplomatic ties. At the same time, these developments present challenges that require careful navigation, as the subcontinent’s nations adapt to the new dynamics of a rapidly evolving West Asia. The future of this relationship will be defined by how the Indian subcontinent aligns its strategic interests with the development trajectories of West Asian countries, fostering mutually beneficial partnerships across a wide spectrum of sectors.
