New Delhi: The Gulf Cooperation Council (GCC) now contributes 15% to India’s total trade, with bilateral trade between India and the region reaching USD 162 billion last year, said Aseem R Mahajan, Joint Secretary – Gulf, Ministry of External Affairs. Addressing the ‘India MENA Business Dialogue: Bridging Economics, Fostering Growth’ organized by FICCI, Mahajan highlighted the growing multi-faceted partnership between India and the Gulf, encompassing sectors such as energy, defense, security, and health.
Mahajan pointed out that while overall trade figures may fluctuate, India’s exports to the GCC have shown consistent growth. “India exports various food processing, jewelry, synthetic fibers and yarns, textiles, pharmaceuticals, and engineering goods, chemical products. Many of these areas are areas of huge potential,” he said. The India-UAE Comprehensive Economic Partnership Agreement (CEPA), signed in 2022, was noted for significantly boosting trade relations with the UAE.
Key initiatives in financial connectivity were also highlighted, including the ongoing integration of India’s UPI system with the UAE’s JAYWAN card and RuPay. Mahajan also pointed to the operational local currency settlement system in Dirham and UPI as a model being considered by other countries. Emerging opportunities in education and connectivity, particularly through the India-Middle East-Europe Economic Corridor, were underscored as areas with significant potential.
Investment opportunities from Sovereign Wealth Funds in Saudi Arabia, UAE, Qatar, and Kuwait are being closely observed, with Mahajan indicating strong interest in sectors like infrastructure, hydrocarbons, renewable energy, and technology. “We are looking at many diverse areas. Infrastructure, hydrocarbons, renewable energy, food processing, technology, health, hospitality, tourism, many of these areas have potential where industry can build fruitful joint ventures and partnerships,” he added.
Indian Ambassador to UAE, Sunjay Sudhir, stressed the importance of technology and innovation within the GCC, particularly in emerging sectors such as AI, healthcare, and space technology. He noted that the GCC is the largest trading regional block of India, contributing to about one-sixth of India’s total trade. “The future holds immense potential for deeper cooperation in these sectors,” he said.
Amit Narang, Indian Ambassador to Oman, spoke about the significant growth in bilateral trade between India and Oman and the potential for direct shipping routes to further enhance trade. He also noted that discussions for a bilateral CEPA with Oman are at an advanced stage, which could further strengthen trade and investment ties.
Indian Ambassador to Saudi Arabia, Dr. Suhel Ajaz Khan, highlighted the energy-driven trade relationship between India and the GCC. He emphasized the economic transformation underway in Saudi Arabia as part of Vision 2030, which is expected to unlock opportunities in various sectors, including construction, mining, technology, and renewable energy.
Adeeb Ahamed, Chairman, FICCI Middle East Council, reiterated the importance of pursuing a Free Trade Agreement between India and the GCC, noting its potential to significantly enhance economic ties. He also emphasized the strategic importance of initiatives like the India-Middle East-Europe Economic Corridor for boosting connectivity and cooperation.
- Published On Aug 28, 2024 at 06:45 AM IST
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