UAE Leads In Indian Exports To GCC With 68% Growth In FY 2021-22
In the fiscal year FY 2021-22, Indian exports to the GCC increased by 44% to $43.9 billion from $27.8 billion in the last financial year 2020-21.
According to the Federation of Indian Export Organizations (FIEO), the country’s export promotion councils’ top body, the UAE dominated the trade with a 68% increase in value, valued at $28 billion compared to $16.7 billion in 2021.
GCC Touched $638 Million Mark In 2021
In a statement at the niche expo, Super Sourcing Dubai (SSD), co-located with Propaper Dubai 2022 taking place at Festival Arena, Dubai Festival City during Sept.20-22, top FIEO officials said paper and allied products exports to the GCC touched $638 million in 2021 with the UAE taking a major share in the trade at $386 million.
Dr. Ajay Sahai is the Director-General and CEO of FIEO. He stated,
“Our exports performance in the GCC in the financial year 2021-22 has been excellent. Apart from the UAE, our exports to Saudi Arabia increased by 49%, Oman by 33%, Qatar by 43%, Kuwait by 17% and exports to Bahrain increased by 70%.”
With the signing of the Comprehensive Economic Partnership Agreement (CEPA) with other Gulf nations, India’s market share in the paper sector is expected to increase to 25% by 2027 from its current 16% share in the GCC.
CEPA, which was signed in February of this year by India and the UAE, went into effect on May 1 of 2022.
SSD Utilization To Connect Exporters
Over $3.8 billion in total demand is anticipated for paper and related products in the GCC market.
“We find a lot of opportunities for Indian organizations post-signing of CEPA with the UAE and are certain of that contribution in the SSD with such a large contingent, perhaps the largest after the Dubai Expo from India,” Dr. Sahai said.
Dr. Sahai also noted that the export prospects will further scale up since zero-duty entrance for Indian products to the UAE is anticipated to broaden over 5-10 years to 97 % of UAE tariff lines, or 99% of Indian exports by that time.
In order to engage with decision-makers in supermarkets, hypermarkets, retail chains, buying agencies, and importers in the Middle East, GCC, and African region, SSD is an exclusive event for Indian exporters.
FIEO’s Role To Raise Exports To The GCC Region
In an active effort to increase India’s exports to the GCC, FIEO has been working.
According to Dr. A. Sakthivel, president of FIEO, FIEO has scheduled a number of initiatives to promote the growth of India’s export to the area in the current financial year, including exhibits, B2B delegations, interactive sessions, and capacity building programs.
The president of FIEO stated that the organization has already taken part in trade shows and exhibits in Qatar, Egypt, Jordan, Oman, the UAE, and Saudi Arabia, and that there are still more events planned for Bahrain, Kuwait, Iraq, Oman, and the UAE.
India-UAE Trading Partnership
By 2030, it is anticipated that the India-UAE CEPA will increase merchandise trade to $100 billion.
Additionally, the agreement will create 1 million new job opportunities and present chances for MSMEs. The UAE’s second-largest trading partner and top export destination is India.
According to the CEPA, approximately 90% of the goods shipped from India and to the UAE and 80% of their trade lines are immediately duty-free.