India and the Gulf Cooperation Council (GCC) member international locations are anticipated to start out negotiations for a free commerce settlement subsequent month with an goal to spice up financial ties between the 2 areas, an official mentioned.

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 mentioned.

India has already carried out a free commerce pact with the UAE in Might this yr.

In line with consultants, 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, mentioned 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 beneath a commerce settlement will assist in tapping that market. It is going to be a win-win state of affairs for each side,” Mr. Joshi mentioned.

Mumbai-based exporter and founder chairman of Techno-craft Industries India, Sharad Kumar Saraf mentioned the GCC has emerged as a serious buying and selling accomplice for India and there’s large potential for rising investments between the 2 areas.

“FTA could have a serious profit for each the edges,” Mr. Saraf mentioned.

Sharing comparable views, Federation of Indian Exports Organisation (FIEO) Vice Chairman Khalid Khan mentioned 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% to about $44 billion in 2021-22 in opposition to $27.8 billion in 2020-21, based on knowledge of the Commerce Ministry.

The share of those six international locations in India’s complete exports has risen to 10.4% in 2021-22 from 9.51% in 2020-21. Equally, imports rose by 85.8% to $110.73 billion in comparison with $59.6 billion in 2020-21, the information confirmed.

The share of GCC members in India’s complete imports rose to 18% in 2021-22 from 15.5% in 2020-21.

Bilateral commerce has elevated to $154.73 billion in 2021-22 from $87.4 billion in 2020-21.

Moreover commerce, Gulf nations are host to a sizeable Indian inhabitants. Out of about 32 million non-resident Indians (NRIs), almost half are estimated to be working in Gulf international locations.

These NRIs ship a big amount of cash again dwelling.

In line with a November 2021 report of the World Financial institution, India bought $87 billion in international remittances in 2021. Of this, a sizeable portion got here from the GCC nations.

Saudi Arabia was India’s fourth-largest buying and selling accomplice 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 accomplice of India within the final fiscal, whereas the UAE was the third-largest buying and selling accomplice in 2021-22.