According to an official statement, released Terms are yet to be finalized and it’s expected to start negotiations next monthÂ
Credits-https://cutt.ly/nNE5ea4
According to PTI, India will begin talks with the GCC for a free trade agreement next month. This will likely strengthen economic conditions between the two regions and give New Delhi’s ambition to significantly boost its export share.
As New Delhi and UK were unable to conclude their FTA talk this Diwali, the prime minister of both countries agreed on resuming the talks and finalizing the terms as early as possibleÂ
Six Gulf nations, including Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Oman, and Bahrain make GCC
According to an official statement, released Terms are yet to be finalised and it’s expected to start negotiations next month
India is in terms of a free trade pact with the UAE from May this year.
GCC region carries huge trade potential and a trade agreement that will enhance trade growth in India’s exports to that market
Exporter and founder chairman of the techno-craft industry in India, Mumbai states GCC has come up as a major trading partner for Indian brands and business owners and it has great potential for rising investments between both regions
“FTA will have significant advantages for both sides,” Mr Saraf continued.
Rakesh Mohan Joshi the director of an Indian institute of plantation management in Bangalore quoted on the GCC market that is unvented by domestic exporters but has huge growth potential
Export of food items, clothing and other commodities can be widely increased as GCC majorly depend on imports. Concessions on duty implied on commodities under terms will help pace the market according to Mr Joshi. He further added it will be a win-win situation for both sides.
Credits- IndianExpress
According to Federation of Indian Exports Organization (FIEO) Vice Chairman Khalid Khan, the agreement will majorly enhance growth in sectors like chemicals, textiles, gems and jewellery and leather
India gets crude oil and natural gas from the Gulf nations like Saudi Arabia and Qatar, and exports imitation jewellery, iron and steel, electrical machinery, precious and semi-precious stones, and other metals to gulf countries
India has a focus on rising exports of commodities and services from 2.1% up to $2 trillion by 2030 and with that, it focuses on raising of share of exports in global trade up to 3% by 2027 further 10% by 2047 by promoting several Indian brands as global pioneers
Mutual trade between the regions has now gone up from 2020-21 $87.4 billion in to $154.73 billion in 2021-22
India’s exports to GCC have marked a rise by 58.26% to about $44 billion in 2021-22 against $27.8 billion in 2020-21, as per the data of the Commerce Ministry
The data showed growth in the export rate of these six countries in India from 9.51 in 2020-21 to 10.4% in 2021-22 and similarly, imports were seen rising from 85.8%-$110.73 billion as compared to $59.6 billion in 2021-22
Overall import share of GCC members in India rose to 18% in 2021-22 from 15.5% in 2020-21.
The Gulf region is also a hub for trade and NRIs. It’s estimated that the 32 million NRIs working outside of their home countries are employed in the Gulf states. Large remittances are routinely sent home by NRIs
The World Bank reported in November 2021 that India received $87 billion in international remittances in 2021. A sizable amount of this comes from the GCC countries.
Last fiscal year, Saudi Arabia was India’s fourth-largest trading partner. India buys 8.5 million tonnes of LNG from Qatar each year and exports goods like wheat, meat, fish, chemicals, and plastics.
In the most recent fiscal year, Kuwait was India’s 27th-largest commercial partner, while the UAE was its third-largest trading partner in 2021–2022.
DO FOLLOW: India, GCC group likely to start free trade pact talks next month
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