India-Yemen Relations: Rich History & Bright Prospects

- Dr Ausaf Sayeed *

India and Yemen have a long history of people-to-people contacts dating back to historical times. Yemeni
traders served as intermediaries for Indian trade with the Roman Empire. The people of Arabia were fascinated
by India’s spices, pearls, precious stones, silk, sandalwood, Oudh and perfumes and looked forward to the
arrival of Indian ships. The Arabian products that were in demand in India were perfumes, incense, carnelian,
coffee and Arabian Horses.

Subsequently, the contacts were intensified with the Hajj route from India running through Yemen. During
1967-68 nearly 15,000 Indian pilgrims used to proceed to Makkah by sea route passing through Aden and
Mocha. The Kamaran Islands also used to serve as a transit point of quarantine for pilgrims during the late
1800s and early 1900s. The Shiite Ismaili sect, which originated and flourished in Yemen before transferring its
headquarters to India in 1567, served as another important religious linkage between the two regions. Members
of the Islmaili Sect continue to visit their sacred sites in the Haraz Mountain and Jibla in south-western Yemen.

Aden-India Contacts

In 1839, Aden became part of the British Empire and was administered by the Bombay Presidency. A garrison
of 2000 Indian soldiers was established in Aden and the Indian Rupee was made the official currency. In 1855,
a fortnightly steamer service with Bombay was initiated by Peninsular and Orient Line. There was a regular
movement of people between the two sides, both for business as well as work. Mr M. Vishweshwaraya, one of
the greatest engineers of India, was sent by the British to Aden in 1906 to lay out an effective underground
drainage system and to prepare a scheme for providing drinking water.

The position of Aden as a gateway to the Red Sea facilitated the visit of several prominent Indian leaders
associated with the Freedom Movement to Aden. Netaji Subhash Chandra Bose, a great Indian revolutionary
who led a politico-military campaign against the British during the World War II, made two historic visits to
Aden, first in 1919 and later in 1935. Mahatma Gandhi visited Aden on September 2, 1931, on his way to
London to participate in the Second Round Table Conference, accompanied by Pandit Madan Mohan Malaviya,
Sarojini Naidu and others, during which he was given a warm reception by the people of Aden.

The Aden administration was separated from India in April 1937 with the appointment of a Governor directly
reporting to London. An Indian diplomatic mission at the level of Commissioner was set up in Aden in June
1950. A large number of Indian nationals, including Hindus, Muslims and Parsis, had lived in Aden since mid-
1880s. Many of the Indian traders later obtained the Yemeni nationality and settled down in Aden, engaging in
trade and commerce. The number of Indians in Aden was estimated at 8,563 in 1856, which gradually increased
to 15,817 in 1955. Dhirubhai Ambani, the founder of the now famous Reliance Group, also started his career in
a humble way in Aden. His son Mukesh Ambani was also born in Aden on April 19, 1957. The Bank of India
opened its branch in Aden in 1954 and remained as the only Indian bank in the country until its incorporation by
the National Bank of Southern Yemen in 1970, which is now the National Bank of Yemen.

These historic linkages between India and Aden are now reflected by the presence of a vibrant Indian-origin
Diaspora in Yemen, mainly settled in Aden, Hadramout, Sana’a, Hodeida, Taiz and other places.

Hadramout’s India Links

One of the earliest recorded contacts between Hadramout and India was in 1560 A.D. when Haji Begum, wife
of Mughal emperor Humayun went to perform Hajj and while on her way back invited nearly 300 Hadrami
Sayyids and sheikhs to accompany her to Delhi. The ‘Arab Ki Sarai’ (Arab Lodge), located near the Humayun’s
Tomb, is a testimony to this historic interaction.
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Hadramout has a long history as an important centre of Islamic learning. There was a steady interaction between
Hadramout and other places in Yemen and the Deccan during the reign of the Bahmani and the Golconda rulers.
Several prominent members of the Sayyid families of Hadramout immigrated to India and established hospices
and institutions of Arabic learning in India. Several renowned scholars from Arabia found great patronage and
encouragement in India. A large number of Arab soldiers were employed by the Nizam of Hyderabad and they
were renowned for their bravery and loyalty. During 1819 and 1857, several Arab chiefs employed in
Hyderabad managed to build huge fortunes and established their own principalities in their regions in Yemen.
For instance, Saleh Al-Aqrabi settled down in Lahej as a distinguished chief and his clan came to be known as
‘Aal Al-Shawoosh’. Two sultanates were founded in Hadramout by the Arabs employed with the Nizam of
Hyderabad. The First was the Kaseri Sultanate founded by Ghalib Bin Mohsin at Seyoun, which lasted till 1967.
The second and the largest sultanate in Hadramout was the Al-Quaiti Sultanate, founded in 1902 by the Yafai
family of Omar Bin Awadh Al-Quaiti, who was given the title of ‘Shamseer-ud-Dowlah’ (‘Scimiter of the
State’) and ‘Janbaz Jung’ (‘Intrepid Warrior’). The Sultanate survived till 1967 and its last ruler Sultan Ghalib
II bin Awadh bin Saleh Al Qu'aiti, who is a renowned scholar, now resides in Jeddah.

Hadramout had a great impact on the culture, music and cuisine of Hyderabad. Likewise, the impact of
Hyderabad on the southern Arabia was significant. A number of land reforms that were introduced in
Hyderabad were applied in Hadramout with suitable modifications. The Hyderabadi cuisine, particularly its
Biryani, is popular in many parts of southern Yemen as ‘Zurbian’.

These intense people-to-people contacts have resulted in the settlement of over 300,000 people of Yemeni
origin, mainly from Hadramout, in the Deccan, particularly in Hyderabad and adjoining areas of Andhra
Pradesh; Aurangabad, Parbhani and Jalna in Maharashtra; Ahmedabad and Surat in Gujarat and Gulbarga and
Bidar in Karnataka. Several members of the “Hadrami” community in India have attained great name and fame
in different walks of life.

Political Relations in the Modern Times

After India became independent in August 1947, it actively supported the Yemeni struggle for independence
from the British Empire. India was one of the first countries to recognise both the Yemen Arab Republic (YAR)
after the 26th September, 1962 revolution and the People’s Democratic Republic of Yemen (PDRY) after its
formation on 29th November 1967. The Indian mission in Sana’a was established in 1970 and the relationship
got strengthened after the consolidation of power by President Ali Abdullah Saleh during 1980s.

India took a neutral stand during the outbreak of the Civil Wars in Yemen. Indian doctors and nurses were
perhaps the only expatriates who stayed behind and rendered humanitarian services to the people of Yemen. In
July 1994, following the successful conclusion of the Civil War, the Government of Yemen sought the help of
the Government of India in admitting over 150 war-wounded persons for medical treatment in the hospitals in
Bombay, which was readily agreed to by the Indian side.

The visit to India by President Ali Abdullah Saleh in March 1983 to participate in the Sixth Non-Aligned
Summit and the official visit of President Zail Singh to Yemen in October 1984 energised the bilateral
relationship. The transit visit of President Saleh to India on 13 th March 1999, while on his way to Japan, during
which he had wide ranging talks with Prime Minister Atal Behari Vajpayee on regional, bilateral and
international issues, and the transit visit of Vice President Shri Krishan Kant to Yemen in October 1999
continued the momentum of high-level exchanges between the leadership of the two sides. The visit of the
Yemeni Parliamentary delegation led by Speaker H.E. Sheikh Abdullah bin Husain Al-Ahmar to India in April
2001 provided an opportunity for useful interactions between the parliamentarians of the two countries.

There has since been a steady exchange of bilateral ministerial visits between the two sides. The important visits
on the Indian side include the visits of Minister of State for External Relations, Shri E.Ahamed (February 2005),
Minister of Petroleum & Natural Gas, Shri Murli Deora (February 2007); Minister of Overseas Indian Affairs,
Shri Vayalar Ravi (October 2007); Minister of State for External Affairs, Dr. Shashi Tharoor (June 2009) and
Minister of State for HRD, Mrs. D. Purandeswari (August 2010) among others.

The significant visits on the Yemeni side include the visits of Minister of Oil & Minerals (June 1999, January
2001, January 2007 and November 2010); Foreign Minister (April 1994); Deputy Minister of Industry (January
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2007); Minister of Agriculture and Irrigation (December 2007) and the Minister of Energy & Electricity
(October 2010).

The foreign policies of India and Yemen have much in common. Both are committed to non-alignment,
international peace, combating international terrorism, support for Arab issues and creation of a zone of peace in
the Indian Ocean. Both India and Yemen are important members of the Indian Ocean Rim - Association for
Regional Cooperation (IOR-ARC), with Yemen being the Chair and India, the Vice Chair. The chairmanship of
IOR-ARC would be passed on to India during September 2011.

Yemen has been an ardent supporter of India in the international fora, particularly the United Nations. It has
supported India’s candidature for the Non-Permanent Seat in the UN Security Council for the period 2011-2012.
Yemen has also voiced support in favour of India in its quest for a Permanent Seat in the expanded UNSC in
future. On its part, India affirmed its strong support to the democracy, unity and stability in Yemen and
supported Yemen’s attempt for accession to the World Trade Organisation.

Bilateral Agreements

Both the countries have instituted official bilateral mechanisms like the Joint Committee for Economic &
Technical Cooperation and the Foreign Office Consultations (FOC) in 1993 and regular interactions are being
held since then. So far there have been seven sessions of the Joint Committee, the last one was held in Sana’a in
March 2010, during which the two sides outlined an elaborate programme for further strengthening and
deepening the bilateral relationship in different fields. Likewise, several rounds of FOC have been held between
the two sides to review important developments in the bilateral, regional and international domains. The next
round of FOC is expected to be held in New Delhi later this year.

The two sides have signed the Bilateral Investment Promotion Agreement (BIPA), the Bilateral Air Services
Agreement (BASA), besides MoUs for bilateral cooperation in the fields of science and technology, health and
medicine and agriculture, while the Double Taxation Avoidance Agreement (DTAA) is under discussion.

Cooperation in the Education Sector

Cooperation in the field of education is an important dimension of India’s bilateral relationship with Yemen.
Every year India offers 32 full-fledged scholarships for Yemeni students under the General Cultural Scholarship
Scheme (GCSS) for pursuing undergraduate, postgraduate and Ph.D. degrees in more than hundred prestigious
Indian universities. Several Yemeni students also go to India to pursue higher studies on self-financing basis.
India is the second most favoured destination of the students of the Aden University for pursuing higher studies
and research. A few Indian students are also pursuing Arabic language studies in universities in Mukalla and
Sana’a. India also offers 50 slots to Yemen for training and capacity building in different fields under the
Indian Technical and Economic Cooperation (ITEC) programme.

Another significant element of bilateral educational cooperation is the direct collaboration between the
universities of the two countries. The Aden University has a history of collaboration with prestigious Indian
universities such as the Roorkee University, Jawaharlal Nehru University and the Allahabad University. The
University of Sana’a is exploring bilateral cooperation with several Indian universities such as the University of
Hyderabad and the Amity University. It is also seeking the assistance of the Indira Gandhi National Open
University (IGNOU) for strengthening its distance-learning department. University of Science & Technology
(UST) signed MoUs with the JSS Institutions, Mysore and the Amity University, which are in different stages of
implementation.

Indian faculty members have been instrumental in setting up of several departments in the University of Sana’a
and the Aden University and many of them are heading different departments in the Yemeni universities.

India would be providing technical equipment and exhibits for the proposed National Science Museum in
Sana’a. It is also considering setting up two Information and Communication Technology (ICT) centres, one in
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Sana’a and another in Aden on grant basis. The two sides are discussing an Educational Exchange Programme
(EEP) which would facilitate focussed cooperation in the field of higher education.

Cultural Relations

India and Yemen signed a bilateral Cultural Agreement on 20th July 1999. Several cultural troupes sponsored by
the Indian Council for Cultural Relations (ICCR) have been regularly performing in different cities in Yemen.
The two sides are discussing a Cultural Exchange Programme (CEP) for further strengthening the cultural
cooperation between them. The Indian side proposes to organise an Indian Cultural Week in the months ahead.

India participated in the 26th Annual Meeting of the Arab Gulf Archives and Documents Centres held in Sana’a
in September 2010, during which the two sides agreed to conclude a MoU in order to utilize the rich wealth of
documents available in the National Archives of the two countries.

As part of cultural diplomacy, the Indian side would be keen to promote Friendship Societies, encourage greater
people-to-people interactions in the form of visits by Civil Society delegations, academicians and journalists and
establish ‘Chairs’ in prestigious universities in both the countries.

Two leading think-tanks, the Indian Council for World Affairs and the Sheba Centre for Strategic Studies, are
keen to forge a partnership for encouraging exchange of experts and analysts and participation in seminars and
symposia on subjects of mutual interest.

Cooperation in the Hydrocarbons Sector

India is interested in both upstream and downstream segments of Yemen’s hydrocarbons sector, besides
purchase of crude oil and natural gas on term contract basis. The first term contract for purchase of crude
between the Governments of India and Yemen was concluded in August 1993, when the Indian Oil Corporation
(IOC) signed a contract for the purchase of 15,000 bpd of crude oil for one year valued at US$ 80 million. The
IOC and the Bharat Petroleum Corporation Limited (BPCL) are importing 6 million bpd of Masila crude oil
since July 2001. The Masila crude oil is also being imported by the Reliance Refinery as well as the Mangalore
Refinery.

The two sides have exchanged visits by the Ministers of Oil and other senior delegates from the public oil
companies and signed a MoU aimed at exploring newer areas of cooperation in the hydrocarbons sector.
Yemen’s Ministers of Oil & Minerals have regularly participated in the annual PETROTECH Conferences held
in India, the last being the visit of Mr. Ameer Salem Al-Aidroos, Minister of Oil and Minerals, in November,
2010 to attend the PETROTECH 2010.

In December 2006, seven oil blocks were awarded to the Indian companies by the Yemeni Ministry of Oil and
Minerals. Reliance Industries Limited (RIL) has got 2 oil blocks (Block Nos. 34 & 37); Gujarat State Petroleum
Corporation (GSPC) in partnership with Jubiliant Enpro & Alkor Petro have got 3 blocks (Block Nos.19, 28 &
57) whereas IOC-OIL in partnership with Medco Energy & Kuwait Energy Co. have got 2 oil blocks (Block
Nos. 82 & 83). Exploration work is going on in all these oil blocks.

The Indian companies are interested in participating in the modernisation of the Aden Refinery, construction of
a hydro-cracking project in Yemen and equity participation in LNG plants. The Indian side offered to impart
training to Yemeni personnel in upstream/downstream hydrocarbons sectors and consultancy services, including
specialised bioremediation services.

The Yemeni Liquefied Natural Gas Company (YLNG) concluded a MOU with British Gas to export 5.2 metric
tonnes of LNG to Maharashtra, Orissa and Gujarat. Separately, the Government of Orissa entered into a MOU
with Al-Manhal International Corporation Group (AMIG) of Abu Dhabi to set up projects at Gopalpur, based on
LNG imported from Yemen. Preliminary discussions have also taken place between the Indian consortium,
Petronet LNG Limited, the Yemeni Government and the Government of Orissa.
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The Gas Authority of India Limited (GAIL) has expressed interest in the development of CNG and City Gas
Distribution project for Sana’a city and executing pipeline projects for the upcoming natural gas pipelines
project in Yemen. They have also offered imparting training to the Yemeni personnel in Gas Process,
Petrochemicals and Pipeline Operation & Maintenance in India.

Nagarjuna Fertilizers and Chemicals Limited are currently engaged in negotiations with the Yemen authorities
for setting up of a gas-based fertilizer plant and a power station in Balhaf with a possible investment of US$ 1.5
billion.

India and Yemen have agreed to constitute a Joint Working Group (JWG) to pursue matters pertaining to oil and
gas.

India’s Year-wise import of Crude Oil from Yemen

(in million tonnes)

2004-05 2005-06 2006-07 2007-08 2008-09 2009-2010

3.508 3.560 4.543 2.194 0.681 2.920

Cooperation in the Power Sector

The need for additional power to the tune of 10,000 MW and rapid expansion of the transmission lines in
Yemen provides an excellent opportunity for the Indian companies to participate in tenders floated by the Public
Electricity Corporation (PEC).

BHEL has been shortlisted for the 400 MW Marib Gas Turbine Power Station (Phase-II) costing US$ 400
million. Angelique International Limited, got contract for the US$ 38 million transmission and transfer of power
on Safer-Marib Project. It has also been awarded with a contract for a transmission line in the Sana’a-Dhamar
segment. Several public and private Indian companies like NTPC, KEC Limited, Gammon International,
Vasavi Power Services Limited and Kalpataru Power Transmission Limited are interested in participating in the
power sector projects in Yemen.

During his visit to India in October 2010 to participate in the Delhi International Renewable Energy Conference
(DIREC), Mr. Awadh Al-Socotri, Minister of Electricity and Energy, interacted with several leading Indian
power companies and encouraged them to enter Yemen’s power sector.

Economic and Commercial Relations

India is the second largest destination for Yemen’s exports and the eighth principal source for its imports. The
bilateral trade reached US$ 2.3 billion during 2009-10, registering a growth of over 49% from the figure of US$
1.542 billion. India’s exports to Yemen were put at US$ 727.29 million, while its imports from Yemen touched
US$ 1.575 billion during 2009-10. In addition, there is a large volume of trade through third countries such as
Saudi Arabia and the UAE.

The principal items of India’s exports to Yemen include tea, rice, wheat, cereals, spices, tobacco, meat and meat
preparations, pharmaceuticals, hand tools, chemicals, etc., while its major items of imports from Yemen include
crude oil, mineral fuels and oils, metal scrap, hides and skins and limestone.

Both sides are discussing a Trade Agreement to boost the bilateral trade and economic relations. The
Government of India has unilaterally offered a Duty Free Tariff Preference (DFTP) Scheme to Yemen, opening
up as many as 90% of tariff lines for duty-free access to Yemeni exports.

India-Yemen Bilateral Trade

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Financial Year India’ Exports to India’s Imports Total Trade

(April-March) Yemen ($ m) from Yemen ($m) ($ m)

2006-2007 1185.03 2009.28 3194.31

2007-2008 1017.54 1468.97 2486.51

2008-2009 787.29 754.61 1542.00

2009-2010 727.39 1,575.55 2302.94

2010-2011 113.93 589.55

(April-June)

(Source: DGCI&S, Kolkata)

Active encouragement is being given for forging institutional cooperation between the chambers of commerce
of both countries. During the visit of the CII business delegation to Yemen in May, 2010, a MoU was signed
with the Federation of Yemen Chamber of Commerce & Industry (FYCCI). Efforts are on to re-activate the
Joint Business Council (JBC) existing between the two countries. The Indo-Arab Chamber of Commerce and
Industries (IACCI), which will be leading a high-level business delegation to Yemen in February 2011, are
expected to enter into MoUs with chambers of commerce in Sana’a and Aden.

There is considerable potential for enhancing bilateral trade in the fields of power, fertilizers, oil & gas, mining,
civil engineering, infrastructure development, telecommunications, fisheries, water harvesting, small and
medium enterprises, micro-financing and general trading. The Aden Free Zone offers several incentives which
could be availed of by Indian investors interested in making a foray into Yemen.

It is expected that the much awaited official visit of President Ali Abdullah Saleh to India in the near future will
open up new vistas of opportunities for Indian entrepreneurs and investors in Yemen and also lead to further
expansion and consolidation of bilateral ties.

***

* The author is the Ambassador of India in Sana’a