India has already carried out a free commerce pact with the UAE this yr. (Representational)

New Delhi:

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 count on 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 response to specialists, the GCC area holds enormous 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 enormous potential.

“GCC is a serious import dependent area. We will improve our exports of meals gadgets, clothes and a number of other different items. Obligation concessions below a commerce settlement will assist in tapping that market. It will likely 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 may be enormous potential for growing investments between the 2 areas.

“FTA could have a serious profit for each the perimeters,” 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 gasoline 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 line with information of the commerce ministry.

The share of those six nations 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.

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 major amount of cash again house.

In response to a November 2021 report of the World Financial institution, India bought 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 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. PTI RR RR MR ABM ABM

(Apart from the headline, this story has not been edited by NDTV employees and is printed from a syndicated feed.)