15% of total Indian annual trade is between India and GCC

Bilateral trade between India and Gulf Cooperation Council has reached INR 1.37 Kharab or 13700 Crores (around US$162 billion). This is around 15 % of total yearly trade of India , as brought out by Shri Aseem R Mahajan, Joint Secretary for the Gulf at the Ministry of External Affairs.

Speaking at the ‘India MENA Business Dialogue: Bridging Economics, Fostering Growth’ organised by FICCI, Mahajan emphasised the growing multi-faceted partnership between India and the Gulf, which spans sectors such as energy, defence, security, and health.

India exports a variety of products, including food processing goods, jewellery, synthetic fibres and yarns, textiles, pharmaceuticals, and engineering goods, and chemical products. These areas as having significant potential forfurther expansion. The India-UAE Comprehensive Economic Partnership Agreement (CEPA), signed in 2022, has significantly boosted trade relations with the UAE.

Mahajan noted that while overall trade figures may fluctuate, India’s exports to the GCC have consistently grown. He highlighted key initiatives in financial connectivity, such as the on-going integration of India’s UPI system with the UAE’s JAYWAN card and RuPay.

He also mentioned the operational local currency settlement system in Dirham and UPI as a model that other countries are considering. Emerging opportunities in education and connectivity, particularly through the India-Middle East-Europe Economic Corridor, were also noted as areas with significant potential.

Investment opportunities from Sovereign Wealth Funds in Saudi Arabia, the UAE, Qatar, and Kuwait are being closely monitored. Mahajan indicated strong interest in sectors like infrastructure, hydrocarbons, renewable energy, and technology, mentioning that diverse areas such as food processing, technology, health, hospitality, and tourism present potential for fruitful joint ventures and partnerships.