By NNN-KUNA
New Delhi : India’s trade with Gulf Cooperation Council (GCC) countries is expected to touch USD 40 billion during the next three years if the free trade agreement (FTA) between the two entities is operationalised.
India’s total trade with GCC countries — Bahrain, Kuwait, Oman, Saudi Arabia, Qatar and UAE — has already gone up to USD 22.5 billion, in fiscal ending March 2007 from USD 5.6 billion in 2001, a study on Indo-GCC FTA, prepared by India’s leading industry body, The Associated Chambers of Commerce and Industry of India (Assocham) said. The study was released in Delhi Tuesday.
”India’s trade basket with GCC is highly concentrated and its top five export categories account for over 50 per cent of India’s export basket to the bloc and top five import items represent over 17 per cent of total import basket from the bloc,” Assocham said.
“India’s trade with GCC has expanded beyond oil, with both exports and imports surging substantially. While India’s exports to GCC countries grew at nearly 27 per cent per annum to USD 16.3 million in 2007, imports (excluding oil) from the region were valued at USD 6.2 billion in 2007, growing at about 22.4 per cent per annum,” the study said. The share of GCC in India’s total trade (excluding oil imports) has increased from about 7.1 per cent in 2001 to 8.7 per cent 2007, the study said.
“India enjoys extremely cordial relations with GCC member states, which are the primary source for India’s oil imports. With enhanced economic cooperation through the proposed FTA, India would not only be assured of oil supplies in future but is also expected to benefit immensely from increased trade and investment opportunities in the region,” Assocham said.