Over the years, India’s business ties with these countries have only grown stronger. India is highly dependent on this region for its oil needs.
Indians make up more than a third of the UAE’s population. In the Gulf there are 89 lakh Indian citizens.
Some of the major stores and restaurants in the Gulf States are owned by Indians. The calls to boycott Indian products could hit Indian-owned businesses.
The United Arab Emirates is India’s third largest trading partner.
The Gulf States are also dependent on India. After the United States, the UAE is India’s second largest export destination and its third largest trading partner.
India-UAE’s bilateral trade was valued at $72.9 billion in 2021-22, while India’s exports were $28.4 billion.
According to the recently concluded Comprehensive Economic Partnership Agreement, total trade is expected to reach $100 billion by 2026.
The Gulf region is primarily dependent on food and grain imports; more than 85% of their food and 93% of their grains are imported.
Rice, buffalo meat, spices, seafood, fruits, vegetables and sugar are all major exports from India.
The Gulf States* aviation industry relies heavily on AAE Indian pilots. The advent of global transit hubs in the Gulf, served by local airlines such as Emirates, Etihad Airways and Qatar Airways, has reduced US and Indian airlines’ share of the lucrative international travel market.
About half of remittances to India come from just five Gulf countries
In 2018, just five Gulf countries accounted for more than half of all remittances.
Kerala has the highest percentage of remittances while Delhi’s share has been increasing in recent years. UP and Bihar have experienced strong growth.
The Gulf supplies more than 60% of India’s crude oil.
India imports a significant amount of crude oil from the Gulf States not only to meet its energy needs, but also for strategic and security reasons. Hardeep Puri, India’s oil minister, told parliament in March that the country consumes 5 million barrels of oil a day, 60 percent of which comes from the Gulf.
(Data taken from Times of India)