Indian exports to GCC rise 44% to $43.9bn in FY 2021-22: FIEO

According to the Federation of Indian Export Organisations (FIEO), the apex body of the country’s export promotion councils, Indian exports to the GCC grew by 44 per cent in FY 2021-22 to $43.9bn compared to last FY’s $27.8bn.

Exports to the UAE topped the list, reflecting 68 per cent growth valued at $28b compared to $16.7bn in 2021. India is the UAE’s second-largest trading partner and largest in terms of exports.

The trade figures were published in a statement released at the Super Sourcing Dubai (SSD) event, taking place alongside Propaper Dubai 2022, at the Festival Arena, Dubai Festival City from September 20-22.

FIEO officials said paper and allied products’ exports to the GCC touched $638m in 2021, with the UAE taking a major share in the trade at $386m.

The cumulative demand for paper and allied products in the GCC market is estimated to be over $3.8bn.

“Our export performance in the GCC in FY 2021-22 has been marvellous. Apart from the UAE, our exports to Saudi Arabia grew by 49 per cent, Oman by 33 per cent, Qatar by 43 per cent, Kuwait by 17 per cent and exports to Bahrain increased by 70 per cent,” said Dr Ajay Sahai, director-general and CEO of FIEO.

In the case of the paper industry, India has a 16 per cent market share in GCC and the target is to corner a 25 per cent market share by 2027, with the signing of the Comprehensive Economic Partnership Agreement (CEPA) with other Gulf countries. India and the UAE signed CEPA in February this year which came into force on May 1.

Read: UAE and India sign Comprehensive Economic Partnership Agreement

“We see a lot of opportunities for Indian companies post the signing of the CEPA with the UAE and are sure that participation in the SSD with such a large contingent, perhaps the biggest after Expo 2020 Dubai from India, will give a further boost to trade,” Dr Sahai said, adding that the export prospects will scale up since zero-duty access for Indian products to the UAE is expected to expand over five to ten years to 97 per cent of UAE tariff lines, or 99 per cent of Indian exports by value.

“FIEO has been aggressively pushing to enhance India’s exports to the GCC region. In the current financial year, FIEO has planned various activities for the development of India’s export to the region, including exhibitions, B2B delegations, interactive sessions and capacity-building programmes,” said Dr A Sakthivel, president of FIEO.

He said FIEO has participated in exhibitions and trade activities in Qatar, Egypt, Jordan, Oman, UAE and Saudi Arabia and there are more activities lined up in Bahrain, Kuwait, Iraq, Oman and the UAE.

The India-UAE CEPA is expected to lift merchandise trade to $100m by 2030. Further, the agreement will also open up opportunities for MSMEs and provide job opportunities to the tune of one million.