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

     

GCC is a union of six nations 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 applied a free commerce pact with the UAE in Might this yr.

     

Based on specialists, the GCC area holds big 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 big potential.

     

“GCC is a serious import dependent area. We will improve our exports of meals objects, clothes and a number of other different items. Obligation concessions beneath a commerce settlement will assist in tapping that market. Will probably 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 serious buying and selling accomplice for India and there’s big potential for rising investments between the 2 areas.

     

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

     

Sharing related 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 nations.

     

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 keeping with knowledge of the commerce ministry.

     

The share of those six nations in India’s complete 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 complete 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.

     

Apart from 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 nations.

     

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 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.