India-GCC Bilateral Trade Hits $162 Billion, Exports Show Steady Growth

India-GCC (Gulf Cooperation Council) countries Bilateral trade reached $162 billion last year, reflecting robust growth, according to the Indian government.

The GCC now represents 15 percent of India’s total trade. Sectors such as energy, defense, security, and health are expanding in the region, stated Aseem P. Mahajan, Joint Secretary (Gulf) in the Ministry of External Affairs.

Speaking at a FICCI event in New Delhi, Mahajan noted that while overall trade figures might fluctuate, India’s exports to GCC nations have shown “consistent growth.” India exports a range of products to the GCC, including food processing items, jewelry, synthetic fibers and yarns, textiles, pharmaceuticals, engineering goods, and chemical products.

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Mahajan also highlighted the strong cultural and bilateral relations between India and the Gulf countries. Economic linkages between India and the GCC have grown steadily, particularly due to increased oil imports. These imports surged in FY22 due to rising oil prices caused by the Russian-Ukrainian conflict and the rebound in demand following the Covid-19 pandemic.

According to 2022 government data, GCC countries account for nearly 35 percent of India’s oil imports and 70 percent of its gas imports. In FY2021-22, India’s crude oil imports from the GCC were approximately $48 billion, while LNG and LPG imports totaled around $21 billion.

Since FY2017-18, bilateral trade between India and the GCC has grown at a compounded annual growth rate of 10.57 percent.

In February of this year, Prime Minister Narendra Modi visited the United Arab Emirates (UAE) and Qatar. During the visit, PM Modi held extensive talks with top leaders to advance the bilateral strategic partnership. He also inaugurated the BAPS Mandir, the first Hindu temple in Abu Dhabi, and addressed the Indian diaspora.

The UAE and India are key trading partners, with bilateral trade amounting to about $85 billion in 2022-23. The UAE is also one of the top four investors in India, based on foreign direct investments for 2022-23.

Additionally, PM Modi’s visit to Qatar focused on expanding bilateral ties in trade, energy, investment, and new technology. Bilateral trade between India and Qatar is currently around $20 billion.