Indo-GCC trade to touch $24bln this fiscal
New Delhi, Dec 3 (UNI) The two-way trade between India and six-nation Gulf Cooperation Council (GCC) is likely to exceed 24 billion dollars this fiscal in the backdrop of good political understanding.
In a paper on 'India-GCC Growing Trade: Exploring Opportunities' brought out by Assocham, it has been emphasised that India's increasing trade ties with GCC would further accelerate to the extent that it might leave behind the United States as one of the largest trade partners in the coming years.
India's trade with the US in 2005-06 stood at 25 billion dollars.
Its share in India's total trade has been undergoing a declining trend over the last three years -- from share 11.64 per cent in 2003-04 to 10.58 per cent in 2005-06.
Whereas for the same period, United Arab Emirates (UAE), the chief constituent of the GCC has noted an increase in India's total trade from 5.06 per cent in 2003-04 to 5.46 per cent in 2005-06.
''GCC, which comprises countries of Saudi Arabia, UAE, Bahrain, Kuwait, Oman and Qatar, would overtake the United States as India's largest trading partner very shortly,'' the paper added.
India-GCC trade stood at 19.48 billion dollar in 2005-06, without taking into account the oil trade. ''It is expected that the figure would exceed 24 billion (excluding oil imports) by March 31, 2007, equalling India's trade with the US last year (2005-06).'' As India and the GCC countries have decided to finalise the bilateral Free Trade Agreement (FTA) by early 2007, the chamber believes that the scope to include services and investment for a Comprehensive Economic Cooperation Agreement instead of a mere FTA would increase economic gains in both the regions.
Pointing out several similarities between India and the GCC countries, Assocham said entrepreneurs should play a key role in contributing to each other's growth.
Several key areas such as ports, power, tourism, roads, gems and jewellery and textiles are important for Indo-GCC cooperation that would generate billions of dollars in business over the next five to 10 years, in view of surplus GCC funds and higher purchasing power on the Indian side. the paper added.
UNI CS SI/PKS KP1706