India and the Gulf Cooperation Council (GCC) member international locations are anticipated to begin negotiations for a free commerce settlement subsequent month with an purpose to spice up financial ties between the 2 areas, an official stated.
GCC is a union of six international locations within the Gulf area — Saudi Arabia, UAE, Qatar, Kuwait, Oman and Bahrain.
“Phrases of reference for the settlement are being finalised and we anticipate to launch the negotiations subsequent month,” the official stated.
India has already carried out a free commerce pact with the UAE in Might this yr.
Based on specialists, the GCC area holds large commerce potential and a commerce settlement would assist in additional boosting India’s exports to that market.
Rakesh Mohan Joshi, Director, Indian Institute of Plantation Administration, Bangalore, stated the GCC market is unexploited by home exporters and it holds large potential.
“GCC is a serious import dependent area. We are able to improve our exports of meals gadgets, clothes and several other different items. Responsibility concessions underneath a commerce settlement will assist in tapping that market. It is going to be a win-win scenario for either side,” Joshi stated.
Mumbai-based exporter and founder chairman of Techno-craft Industries India, Sharad Kumar Saraf stated the GCC has emerged as a serious buying and selling companion for India and there’s large potential for growing investments between the 2 areas.
“FTA could have a serious profit for each the edges,” Saraf stated.
Sharing comparable views, Federation of Indian Exports Organisation (FIEO) Vice Chairman Khalid Khan stated sectors like chemical substances, textiles, gems and jewelry and leather-based will get a serious impetus by this settlement.
India imports predominately crude oil and pure fuel from the Gulf nations like Saudi Arabia and Qatar, and exports pearls, treasured and semi-precious stones; metals; imitation jewelry; electrical equipment; iron and metal; and chemical substances to those international locations.
India’s exports to the GCC elevated by 58.26 per cent to about USD 44 billion in 2021-22 in opposition to USD 27.8 billion in 2020-21, in line with knowledge of the commerce ministry.
The share of those six international locations in India’s whole exports has risen to 10.4 per cent in 2021-22 from 9.51 per cent in 2020-21. Equally, imports rose by 85.8 per cent to USD 110.73 billion in comparison with USD 59.6 billion in 2020-21, the information confirmed.
The share of GCC members in India’s whole imports rose to 18 per cent in 2021-22 from 15.5 per cent in 2020-21.
Bilateral commerce has elevated to USD 154.73 billion in 2021-22 from USD 87.4 billion in 2020-21.
In addition to commerce, Gulf nations are host to a sizeable Indian inhabitants. Out of about 32 million non-resident Indians (NRIs), practically half are estimated to be working in Gulf international locations.
These NRIs ship a big sum of money again house.
Based on a November 2021 report of the World Financial institution, India acquired USD 87 billion in overseas remittances in 2021. Of this, a sizeable portion got here from the GCC nations.
Saudi Arabia was India’s fourth-largest buying and selling companion final fiscal. From Qatar, India imports 8.5 million tonnes a yr of LNG and exports merchandise starting from cereals to meat, fish, chemical substances, and plastics.
Kuwait was the twenty seventh largest buying and selling companion of India within the final fiscal, whereas the UAE was the third-largest buying and selling companion in 2021-22. PTI RR RR MR ABM ABM
(Aside from the headline, this story has not been edited by NDTV employees and is printed from a syndicated feed.)