The value-wise trade between India and GCC and other Arab countries for the last 3 years and current year is given below. The countries included in this group are GCC Countries (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates); West Asian Countries other than GCC (Iraq, Israel, Jordan, Lebanon, Yemen, Syria);and North African Countries (Algeria, Egypt, Morocco, Libya, Sudan, Tunisia).

The bilateral trade in the region, as may be seen from the table given below has increased by 75.91 %   from US$ 107360.14 million in 2009-10 to US$ 188867.66 million in 2011-12.

Value: US $ million

Source: DGCIS

A statement showing the top 10 commodities of export and import in that region is at Annex I. It will be noted that India’s export to this region primarily consists of Gems & Jewellery, Petroleum (Crude & Products), Transport Equipments, Rice- Basmati, Readymade Garments (Cotton), Sugar, Meat Preparations, Drugs Pharmaceuticals & Fine Chemicals, Electronic Goods etc.

Total trade of India has grown at the rate of around 28% during the year 2011-12, while the total trade in the above mentioned countries has grown at the rate of nearly 28.99%. Assuming a rate of growth of 28% , the total trade in the region can be expected to be around US$ 241 billion during the year 2012-13. However in view of the general slowdown observed in trade in India and rest of the World, it may be safe to assume that India’s trade in this region would go up to US $200 billion in 2012-13 which is nearly double of India’s trade with this region in 2009-10.

The mandate for the negotiations for a Free Trade Agreement between India and GCC (Gulf Cooperation Council for Arab States) was given by the Trade Economic Relations Committee (TERC) in July 2005 after which two rounds of negotiations were held in 2006 and 2008. Negotiations with GCC have however been at a standstill since 2008 . We have been informed that GCC is reviewing its negotiations with all countries and economic groups, and that a study has been commissioned by them to examine the issue of negotiations with India and China. Besides the above mentioned FTA with GCC, India is also negotiating an FTA with Israel in the region, six rounds of which have been held so far.

Annex I

List of Top-10 Export Commodities to Gulf & Other Arab Countries during the year 2012-13 (As on April-December, 2013)

(A) List of Top-10 Import Commodities from Gulf & Other Arab Countries during the year 2012-13 (As on December, 2013)

Source DGCIS

This information was given by the Minister of State of Commerce & Industry, Dr. D. Purandeswari in a written reply in Rajya Sabha today.

DS/RK

(Release ID :93100)

Free Trade Agreement negotiations with GCC remain stalled, while India-Arab regional trade shows marked commodity concentration and growth. Bilateral trade between India and GCC, other West Asian and North African countries grew substantially between 2009-2012 with major exports including gems and jewellery, petroleum, machinery, transport equipment and textiles, and major imports dominated by petroleum, gold, chemicals and metal ores; the release provides top ten commodity lists for each country group and notes projected 2012-13 trade scenarios while recording that a mandate for a Free Trade Agreement with the GCC was issued in 2005 but negotiations have been stalled since 2008 pending GCC review, alongside continuing FTA talks with Israel.