Journal ID : AMA-09-04-2023-12176
[This article belongs to Volume - 54, Issue - 04]
Total View : 385

Title : India’s Trade Deficit with the GCC Countries Compensated by Remittances

Abstract :

India’s economic cooperation with GCC countries has been going on for many decades and growing over time. India has huge resources based on agriculture, while GCC is an economic organisation that comprises six oil-based economies (Saudi Arabia, UAE, Kuwait, Qatar, Oman, and Bahrain). And it generates a huge share of their national income from producing and exporting petroleum oil. With time India’s economic cooperation with GCC economies is growing in size and importance. Both India and the GCC countries are crucial for bilateral energy cooperation. The available information on India’s growing export trends of goods and services confirmed its growing importance in the GCC market. Migration of expatriate labours is predominantly a commodity in Indian exports of goods and services to Gulf countries. Exports of human capital to GCC countries play a crucial role in the economic growth and development of GCC economies while improving trends of Indian imports from Gulf countries also shows that significant increment in importance for GCC’s petroleum oil exports. GCC exports detailed characterised by plenty of Petroleum oil. India is a labour-exporting country, while GCC economies are the main petroleum oil exporters. As India received a substantial amount of remittances, and GCC economies received massive oil revenues. Consequently, India is facing a deficit in its balance of trade with GCC economies. This India’s trade deficit with GCC economies may be compensated by the inflows of remittances received from Gulf countries. Commodities like Basmati rice, spices, various vegetable oil, and manpower are the most important export items to GCC countries. Petroleum oil and petroleum products are the most important imported items from India to GCC economies. Important statistical tools like the growth rate of exports and imports have been used in trade analysis. This study covers ten years period that has been taken for discussing economic cooperation.

Full article