NEW DELHI: Trade between India and Arab countries already exceeds $150 billion, while new investment opportunities in India could drive the figure to $500 billion over the next 10 to 20 years, according to a report in TV BRICS news website.
India's trade with Arab countries could more than triple to $500 billion over the next 10 to 20 years as Gulf investors increase their presence in the Indian market, says Waiel Awwad, Secretary General of India and Arab Countries Chamber of Commerce, Industry, and Agriculture (IACCIA).
Speaking ahead of the 'India-Arab Business Conclave 2026', scheduled for December 18-19 in New Delhi, Awwad said bilateral trade has already surpassed $150 billion.
Representatives from all 22 Arab countries have been invited to the Delhi event, which aims to facilitate investment partnerships and strengthen commercial ties.
According to Awwad, India's expanding investment opportunities across multiple sectors could attract more capital from Arab countries. He said that government incentives and a platform for direct engagement between businesses could further encourage Gulf investors to enter the Indian markets, according to the report.
India and the Gulf Cooperation Council (GCC) are working to unlock the full bilateral trade potential through the India-GCC Free Trade Agreement (FTA) which was discussed between the two sides, on the sidelines of the UN General Assembly in New York recently.
The trade talks were held between External Affairs Minister S. Jaishankar and Gulf officials, including Saudi Minister of State for Foreign Affairs Adel Al-Jubeir and GCC Secretary General Jasem Mohamed Albudaiwi.
GCC-India bilateral trade was worth more than $178 billion in the 2025-26 fiscal year, with the Gulf region also home to about 10 million Indian diaspora, according to an article in the Arab News.
“Commencing Free Trade Agreement negotiations between the GCC and India marks a pivotal milestone toward broadening economic and investment horizons,” said a statement from the GCC Secretariat.
During the meeting, Albudaiwi also “emphasised the imperative of deepening collaboration” across various areas, including energy, technology, innovation and digital transformation.
India already has a Comprehensive Economic Partnership Agreement in place with Oman and the UAE, both GCC members.
A free trade agreement with the GCC is likely to benefit Delhi, providing better market access for Indian exports, deeper integration with supply chains, and greater opportunities for Indian services and skilled professionals.
While India’s machinery, textiles, gems and jewellery industries traditionally benefit from an FTA, other sectors such as agriculture and processed foods, pharmaceuticals and medical devices, as well as services are expected to see greater advantages when it comes to the Gulf region.