United Arab Emirates (UAE), GCC’s biggest trading member, has approached India to revive FTA talks that got stalled in 2008. As per SRTEPC reports, two rounds of negotiations were held between India and the GCC on feasibility of a free trade agreement in 2008. However, talks stopped after the latter began a review of its negotiations with all countries and economic groups.
India is keen to increase exports to the UAE. In FY21, it imported goods worth $80.5 billion from GCC countries, while its exports amounted to $40.5 billion. About half of this trade was with the UAE.
India’s exports to UAE in April-January FY21 amounted to $12.9 billion with the main items being mineral fuels, apparel, gems and jewellery, and electrical machinery. During the same period, India’s imports from the UAE were worth $19.65 billion.
Industry experts say, India can export products made of leather, plastic, and iron and steel to the UAE, while it may have to give tariff concessions to import petroleum-related products and fertilizers.