Not generally a fan of small countries being colonized, but their system is too horrible and unlikely to change, so:
Indians and Nepalis make up half the population, so India should just invade it too liberate their fellow countrymen + fellow Hindus and make it an overseas Indian state. Their oil income might as well add to development in India.
Most of the Gulf States were colonized by Britain in the sense that they were protectorates whose rulers had truces with Britain (which is why they were collectively referred to as the Trucial States). It arguably would have been better ITLR if the British had just eliminated the heads of the ruling tribal clans and replaced them with modern "civilized" monarchies from scratch as they did in Transjordan and Iraq.
