India's trade with GCC nations increasing at rapid pace

India’s trade with Gulf nations has come into prominence after a diplomatic row over derogatory comments made by the ruling BJP’s spokespersons against Prophet Muhammad (PBUH). Here is a look at bilateral trade India has with the Gulf nations:

India imports predominately crude oil and natural gas from the Gulf nations like Saudi Arabia and Qatar, and exports pearls, precious and semi-precious stones; metals; imitation jewellery; electrical machinery; iron and steel; and chemicals to these countries.

During 2020-21, India imported goods worth $110.73 billion from the six GCC (Gulf Cooperation Council) nations. Its merchandise exports stood at $44 billion to these nations.

Besides trade, Gulf nations are host to a sizeable Indian population. Out of about 32 million non-resident Indians (NRIs), nearly half are estimated to be working in Gulf countries.

These NRIs send a significant amount of money back home.

According to a November 2021 report of the World Bank, India got $87 billion in foreign remittances in 2021. Of this, a sizeable portion came from the GCC nations.

Trade with GCC nations:

1. Saudi Arabia: It was the fourth-largest trading partner last fiscal. Total bilateral trade has increased to about $43 billion in 2021-22 from $22 billion in the previous fiscal.

2. Qatar: India imports 8.5 million tonnes a year of LNG from Qatar and exports products ranging from cereals to meat, fish, chemicals, and plastics. Two-way commerce between India and Qatar rose to $15 billion in 2021-22 from $9.21 billion in 2020-21.

3. Kuwait: It was the 27th largest trading partner of India in the last fiscal. Bilateral trade has jumped to $12.3 billion in 2021-22 as compared to $6.3 billion in the previous financial year.

4. UAE: It was the third-largest trading partner of India in 2021-22. India’s bilateral trade with the nation increased to $72.9 billion in 2021-22 as compared to $43.3 billion in 2020-21.

5. Oman: It was the 31st largest trading partner of India in 2021-22. India’s bilateral trade with the nation has increased to about $10 billion in 2021-22 as compared to $5.5 billion in 2020-21.

6. Bahrain: Two-way commerce with India stood at $1.65 billion in 2021-22 as against $1 billion in 2020-21.

Besides, India’s bilateral trade with Iran aggregated to $1.9 billion in 2021-22 as compared to $2.1 billion in 2020-21.

ALSO READ:

• UAE to reduce tariffs on Indian goods by 90% under Cepa deal: Minister

• 2022 will be a landmark year for UAE-India investments, says Dr Aman Puri

• UAE-India start-up corridor aims to raise 10 unicorns by 2025

• India