GCC is a union of six Gulf international locations—Saudi Arabia, the UAE, Qatar, Kuwait, Oman and Bahrain.

“Phrases of reference for the settlement are being finalized and we count on to launch the negotiations subsequent month,” the official mentioned.

India has already applied a bilateral free commerce pact with the UAE in Could this yr.

In keeping with specialists, the GCC area holds enormous commerce potential and a commerce settlement would assist enhance India’s exports to that market.

Rakesh Mohan Joshi, director, Indian Institute of Plantation Administration, Bengaluru, mentioned the GCC market is unexploited by home exporters and holds enormous potential.

“GCC is a significant import dependent area. We are able to enhance our exports of meals objects, clothes and several other different items. Responsibility concessions below a commerce settlement will assist in tapping that market. It is going to be a win-win state of affairs for each side,” Joshi mentioned.

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

“FTA may have a significant profit for each the perimeters,” Saraf mentioned.

Federation of Indian Exports Group (FIEO) vice chairman Khalid Khan mentioned sectors like chemical compounds, textiles, gems and jewelry and leather-based will get a significant impetus by this settlement.

India imports principally crude oil and pure fuel from 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 compounds to those international locations.

India’s exports to the GCC elevated by 58.26% to about $44 billion in 2021-22 from $27.8 billion in 2020-21, in accordance with 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.

Imports rose by 85.8% to $110.73 billion in comparison with $59.6 billion in 2020-21.

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 considered working in Gulf international locations.

These NRIs ship a major amount of cash again residence.

Saudi Arabia was India’s fourth-largest buying and selling companion final fiscal.

From Qatar, India imports 8.5 million tonnes a yr of fuel and exports merchandise starting from cereals to meat, fish, chemical compounds and plastics.