What is the Gulf Cooperation Council (GCC)?

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About GCC

Definition: The Gulf Cooperation Council (GCC) is a regional political and economic alliance established in 1981.
Member countries: Comprises six Arab states: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE).
Objective: To foster economic, security, cultural, and social cooperation among its members.
Historical context: The GCC was formed in response to escalating regional tensions, particularly the Iranian Revolution (1979) and the Iran-Iraq War (1980–1988).

Key Features of the GCC

Global significance: The GCC countries together hold almost half of the world’s oil reserves, making them vital players in the global energy market.
Annual summits: The GCC convenes yearly summits to discuss strategies for cooperation and regional stability.

Organizational Structure of the GCC

Supreme council:
- Highest authority: Composed of the heads of state from all member countries.
- Decision-making: Decisions are made through unanimous approval.
- Presidency rotation: The presidency rotates annually, based on the alphabetical order of member states.
Ministerial council:
- Composed of foreign ministers or their representatives from member states.
- Role: Proposes policies and implements decisions of the Supreme Council.
- Meetings: Held every three months.
Secretariat general:
- Acts as the administrative arm of the GCC.
- Functions: Monitors policy implementation and arranges meetings.
- Headquarters: Located in Riyadh, Saudi Arabia.

India and the GCC

Largest regional trading partner: The GCC is India’s most significant regional trading bloc. Bilateral trade (FY 2023-24):
- Total trade: USD 161.59 billion.
- India’s exports: USD 56.3 billion.
- India’s imports: USD 105.3 billion.
- The UAE is India’s 3rd largest trading partner and 2nd largest export destination.
Workforce and Remittances: Approximately 8.9 million Indian expatriates reside in GCC countries, forming 66% of all non-resident Indians (NRIs).
- Indian expatriates contribute significantly to remittances, a vital income source for India.

Q1). What is OPEC and its purpose?

OPEC, established in 1960, is an intergovernmental organization of 13 oil-exporting countries that coordinates petroleum policies to stabilize oil markets, secure fair prices, and ensure a consistent energy supply to consumers worldwide.