https://arab.news/w6t8d
- India’s top business body is hopeful for India-GCC free trade pact
- Gulf region has emerged as hub for innovation, Indian envoy says
NEW DELHI: India’s top business stakeholders discussed on Tuesday the future of economic and commercial engagements with Gulf Cooperation Council countries amid growing opportunities in sectors such as infrastructure, renewable energy, health and tourism.
The GCC is India’s largest bloc trading partner, with trade valued at $162 billion in the 2023-24 fiscal year, up about four percent from the previous year. In 2023, Gulf nations also contributed about $3.7 billion in foreign direct investment to the South Asian country.
India-GCC ties are also growing in other areas, with 8.8 million Indian nationals living and working in the region forming a bulk of its workforce and millions of travelers from India becoming a growing target market for the Gulf’s tourism sector.
In an initiative organized by India’s top business body, the Federation of Indian Chambers of Commerce and Industry, the country’s officials and businesses gathered on Tuesday to explore cooperation opportunities with the GCC in new sectors.
“Sovereign wealth funds in GCC countries are looking at investment opportunities in India,” Aseem R. Mahajan, joint secretary for the Gulf at the Ministry of External Affairs, said during the event.
“We are looking at many diverse areas. Infrastructure, hydrocarbons, renewable energy, food processing, technology, health, hospitality, tourism; many of these areas have potential where industry can build fruitful joint ventures and partnerships.”
Each of the Gulf countries also offer their particular opportunities, Indian ambassadors in the Gulf said.
Saudi Arabia’s Vision 2030 transformation project “will open up opportunities in various sectors,” said Dr. Suhel Ajaz Khan, Indian ambassador to the Kingdom. This includes construction, mining, renewable energy, automobiles and tourism.
GCC countries have also emerged as an important hub for innovation, Indian Ambassador to the UAE Sunjay Sudhir said.
“With countries like the UAE and Saudi Arabia leading … the future holds immense potential for deeper cooperation in emerging sectors such as AI, health care and space technology,” he said.
The discussions on Tuesday were also aimed at helping Indian businesses identify potential opportunities in the Gulf region.
“We will get into the nuts and bolts, and that is what is important in this. And it will enable us to enlarge our area of activity, look at new investments and the new avenues which will open up for us,” P.S. Jayaraman, chairman, TCI Sanmar Chemicals SAE, told Arab News on the sidelines of the event.
“This is going to be in the best interest of the Indian industries.”
As FICCI works with its counterparts in GCC countries to further encourage trade and investments, it is hopeful that new agreements and initiatives could boost existing ties between India and the bloc.
“Looking ahead, pursuing a free trade agreement between India and the GCC holds immense promise for both regions. Such an agreement would facilitate smoother trade and investment flows, further integrating our economies,” said Adeeb Ahamed, chair of FICCI’s Middle East Council.
“Additionally, initiatives like the India-Middle East-Europe Economic Corridor represent significant opportunities for enhanced connectivity and economic cooperation, and I am hopeful that they will soon become a reality.”