India’s trade with GCC nations increasing at rapid pace

India’s trade with GCC nations increasing at rapid pace

The country received $87 billion in foreign remittances in 2021

By PTI Published: Mon 6 Jun 2022, 8:29 PM

India’s trade with Gulf nations has come into prominence after a diplomatic row over derogatory comments made by the ruling BJP’s spokespersons against Prophet Muhammad (PBUH). Here is a look at bilateral trade India has with the Gulf nations:

India imports predominately crude oil and natural gas from the Gulf nations like Saudi Arabia and Qatar, and exports pearls, precious and semi-precious stones; metals; imitation jewellery; electrical machinery; iron and steel; and chemicals to these countries.

During 2020-21, India imported goods worth $110.73 billion from the six GCC (Gulf Cooperation Council) nations. Its merchandise exports stood at $44 billion to these nations.

Besides trade, Gulf nations are host to a sizeable Indian population. Out of about 32 million non-resident Indians (NRIs), nearly half are estimated to be working in Gulf countries.

These NRIs send a significant amount of money back home.

According to a November 2021 report of the World Bank, India got $87 billion in foreign remittances in 2021. Of this, a sizeable portion came from the GCC nations.

Trade with GCC nations:

1. Saudi Arabia: It was the fourth-largest trading partner last fiscal. Total bilateral trade has increased