India–GCC trade: the Gulf is India’s largest regional trading partner

The India-GCC trade relationship is a cornerstone of India's foreign trade.

The GCC is India's largest regional trading partner, accounting for about 15% of India's total trade. The UAE is India’s principal trading partner in the Gulf, followed by Saudi Arabia.

The GCC's substantial oil and gas reserves are vital for India's energy needs and security. Oil products constitute a significant share of the trade and the region supplies about 35% of India's crude oil and 70% of its liquefied natural gas requirements. This energy partnership is crucial, especially as India is projected to become the largest source of global oil demand by 2030.

For the GCC countries, India represents a stable and growing market for their energy exports. At the same time, the GCC is a promising export market for Indian goods and services, given the high consumer purchasing power, and economic diversification efforts.

A Free Trade Agreement (FTA) is high on agendas and negotiations are said to have resumed. New terms of reference for the FTA negotiations were being discussed between the two sides, according to the latest updates provided to the Committee on External Affairs of the 17th Lok Sabha.

Stay tuned as we piece together the story to make the case for enhanced air connectivity for millions of Indians living in the Gulf!

Edition 1 - Size and significance of the diaspora - https://bit.ly/4dkRSmz
Edition 2 - The quantum and significance of remittances - https://bit.ly/4gNwzwO

(This write-up is for educational/ informational purposes only and figures are directional at best)

(Views my own; happy to amend inaccuracies, if any)