India-GCC trade reaches $162 billion, strengthening energy and defence
ECONOMY & POLICY

India-GCC trade reaches $162 billion, strengthening energy and defence

Aseem R Mahajan, Joint Secretary for the Gulf at the Ministry of External Affairs, stated that the Gulf Cooperation Council (GCC) now contributes 15% to India’s total trade, with bilateral trade between India and the region reaching $162 billion last year. Speaking at the 'India MENA Business Dialogue: Bridging Economics, Fostering Growth' organised by FICCI, Mahajan emphasised the growing multi-faceted partnership between India and the Gulf, which spans sectors such as energy, defence, security, and health.

Mahajan noted that while overall trade figures may fluctuate, India's exports to the GCC have consistently grown. He mentioned that India exports a variety of products, including food processing goods, jewellery, synthetic fibres and yarns, textiles, pharmaceuticals, and engineering goods, and chemical products, and highlighted these areas as having significant potential. He also pointed out that the India-UAE Comprehensive Economic Partnership Agreement (CEPA), signed in 2022, has significantly boosted trade relations with the UAE.

Mahajan highlighted key initiatives in financial connectivity, such as the on-going integration of India’s UPI system with the UAE’s JAYWAN card and RuPay. He also mentioned the operational local currency settlement system in Dirham and UPI as a model that other countries are considering. Emerging opportunities in education and connectivity, particularly through the India-Middle East-Europe Economic Corridor, were also noted as areas with significant potential.

Investment opportunities from Sovereign Wealth Funds in Saudi Arabia, the UAE, Qatar, and Kuwait are being closely monitored. Mahajan indicated strong interest in sectors like infrastructure, hydrocarbons, renewable energy, and technology, mentioning that diverse areas such as food processing, technology, health, hospitality, and tourism present potential for fruitful joint ventures and partnerships.

Aseem R Mahajan, Joint Secretary for the Gulf at the Ministry of External Affairs, stated that the Gulf Cooperation Council (GCC) now contributes 15% to India’s total trade, with bilateral trade between India and the region reaching $162 billion last year. Speaking at the 'India MENA Business Dialogue: Bridging Economics, Fostering Growth' organised by FICCI, Mahajan emphasised the growing multi-faceted partnership between India and the Gulf, which spans sectors such as energy, defence, security, and health.Mahajan noted that while overall trade figures may fluctuate, India's exports to the GCC have consistently grown. He mentioned that India exports a variety of products, including food processing goods, jewellery, synthetic fibres and yarns, textiles, pharmaceuticals, and engineering goods, and chemical products, and highlighted these areas as having significant potential. He also pointed out that the India-UAE Comprehensive Economic Partnership Agreement (CEPA), signed in 2022, has significantly boosted trade relations with the UAE.Mahajan highlighted key initiatives in financial connectivity, such as the on-going integration of India’s UPI system with the UAE’s JAYWAN card and RuPay. He also mentioned the operational local currency settlement system in Dirham and UPI as a model that other countries are considering. Emerging opportunities in education and connectivity, particularly through the India-Middle East-Europe Economic Corridor, were also noted as areas with significant potential.Investment opportunities from Sovereign Wealth Funds in Saudi Arabia, the UAE, Qatar, and Kuwait are being closely monitored. Mahajan indicated strong interest in sectors like infrastructure, hydrocarbons, renewable energy, and technology, mentioning that diverse areas such as food processing, technology, health, hospitality, and tourism present potential for fruitful joint ventures and partnerships.

Next Story
Infrastructure Transport

Taking Flight!

When Prime Minister Narendra Modi inaugurated the Navi Mumbai International Airport (NMIA) on October 8, 2025, it marked far more than the opening of another terminal – it signified a turning point in India’s aviation and infrastructure narrative. Developed by Adani Airport Holdings Ltd (AAHL) in partnership with the City and Industrial Development Corporation (CIDCO), NMIA represents a bold vision of how modern India intends to connect its people, power its economy and project its identity on the global stage.“The Navi Mumbai International Airport is a project that exemplifies the visio..

Next Story
Infrastructure Transport

Highway Guidelines 2.0

In August 2025, a Public Accounts Committee comprising members of the Lok Sabha and Rajya Sabha presented a report, ‘Levy and Regulation of Fees, Tariffs, User Charges etc on Public Infrastructure and Other Public Utilities in the context of the Ministry of Road Transport and Highways (MoRTH) and the National Highways Authority of India (NHAI).Having examined present design accountability, subcontracting, pavement failures, emergency response mechanisms, toll reforms, service quality, stakeholder consultations and other aspects, the Committee presented recommendations covering the planning a..

Next Story
Infrastructure Transport

Railways approves major upgrade for Telangana traction lines

The Ministry of Railways has approved the upgradation of the electric traction system in two crucial railway sections — Medchal–Mudkhed (225 km) and Mahbubnagar–Dhone (184 km). The projects, costing Rs 1.93 billion and Rs 1.23 billion respectively, will enhance the electric traction capacity from 1X25 KV to 2X25 KV. The work includes modifications to circuit breakers and switching stations, along with the installation of additional conductors. These routes serve as vital links between Northern and Southern India via Hyderabad. Once completed, the upgraded system will reduce voltage dro..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?