Are India’s billion-dollar trade ties with Gulf states in ‘peril’ amid Prophet Mohammed row?

Even as Modi pushed a domestic Hindu nationalist agenda, ties between India and Gulf nations deepened – gains at risk of being rolled back, observers say

While some analysts say the storm will blow over, opposition leader Shashi Tharoor warns it is time for Modi to choose between ‘polarisation and prosperity’

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Iranians protest against the statements made by two BJP officials. Photo: EPA-EFE

Published: 9:30pm, 14 Jun 2022

India’s diplomatic crisis triggered by an official’s insulting remarks about Islam could seriously jeopardise billions of dollars worth of trade and remittances, analysts say, as New Delhi scrambles to patch up its ties with Gulf states.

At least 20 Muslim nations, along with the six-member Gulf Cooperation Council (GCC) and the 57-member Organisation of Islamic Cooperation, have condemned the disparaging statements by Nupur Sharma, the Bharatiya Janata Party’s (BJP) national spokesperson, about the Prophet and his third wife, Aisha.

Sharma’s comments sparked huge demonstrations in Muslim nations and smaller, though more violent, protests in India. Some Gulf supermarkets have stopped selling Indian products amid a #BoycottIndiaProducts social media campaign.

In an attempt to calm the Muslim world’s anger, the BJP called Sharma’s remarks “fringe views” while the government said it “accords the highest respect to all religions.” The party suspended Sharma and expelled another BJP spokesperson who echoed her remarks on social media.

Prime Minister Narendra Modi’s party had to backtrack on its “communal rhetoric” for the first time since sweeping to power in 2014 because “it can’t risk alienating the Islamic world,” said political commentator Vir Sanghvi.

But the controversy has far from died down. Even as Modi pursued a pro-Hindu agenda at home, he spent more time and effort promoting ties with Gulf nations than any of his predecessors – gains that now could be at risk, observers say.