Islamophobia has led to discrimination against Muslims, including in India. Historical tensions rooted in religious divisions have evolved into systemic oppression under Hindutva ideology, leading to discriminatory policies, violence, and social exclusion against India’s estimated 200 million-strong Muslim population. This study examines the Gulf Cooperation Council (GCC) response to Islamophobia in India, as the GCC is India’s trading partner, focusing on the differences between its member states’ economic priorities and their shared Islamic identities. The GCC’s approach to the issue remains fragmented. Saudi Arabia, the UAE, Oman, and Bahrain prioritize strong economic ties with India, driven by interdependence in trade and energy. In contrast, Kuwait and Qatar have taken a more oppositional stance, condemning India’s Hindu nationalist agenda and highlighting human rights violations. The study uses a constructivist framework to explore the interplay between regional identities, national interests, and intergovernmentalism in the GCC’s decision-making process. The results show that the GCC’s response reflects the interests of individual member states, highlighting the intergovernmental nature of the organization. This pragmatic approach emphasizes the prioritization of economic dependence over actions based on collective identity solidarity. The study concludes that although Islamophobia in India poses a moral dilemma for GCC members, economic interests dominate their bilateral relations.