The foundation of the trade is their economic cooperation
Hitting a total of $195.1 billion in 20222, the trade between the Gulf Cooperation Council (GCC) and its partners India and Brazil is seeing a significant growth as reported by the secretary general of GCC.
Jasem Mohamed AI-Budaiwi emphasised on the growing economic ties during the India-GCC Joint Ministerial Meeting for Strategic Dialogue. The trade particularly focuses on growing opportunities in fintech, artificial intelligence and renewable energy.
Al-Budaiwi started the speech by underscoring the strong foundation of the economic ties that uplifts the support of GCC’s connection with Brazil and India. He further highlighted the significance of these partnerships in terms of mutual growth and taking the global challenges into consideration.
The GCC chief provided detailed figures on the trade front to showcase the strong connections of the commercial relationship of GCC and India. He said: “In 2022, trade between the GCC and India amounted to approximately $174 billion, representing around 11 percent of the total foreign trade of the GCC.”
The trade figures were further presented in detail by AI-Budaiwi unveiling the value of GCC’s exports to India which amounted to $91 billion.
Trade between GCC and Brazil doubled in number in 2022 and the figures reached $21.9 billion. Al-Budaiwi remarked: “This figure accounts for approximately 1.4 percent of the total foreign trade of the GCC, which amounted to $1.544 trillion last year, highlighting the growing significance of our collaboration.”
He continued to elaborate the nature of the trade keeping in mind that it encompasses many other commodities which includes oil, gas, iron, foodstuffs, and mineral oils.
The highlight of GCC’s economic relationship with India are the many significant investments made by the Gulf states. Nearly $6 billion of investment has been made by the GCC countries through various projects to India. This showcases a mutual trust and is a promise for new opportunities offered by both the markets.
According to Al-Budaiwi, these investments are essential to producing major economic gains for both parties, such as the creation of jobs and general economic expansion. He emphazised that by increasing the investments both the parties can be economically benefited in terms of growth and employment.
The strategic importance of renewable energy cooperation amid the two parties, GCC and India offer many opportunities for joint investment in renewable energy sectors. He went on to say that this kind of cooperation will boost environmental preservation, diversify energy sources, and advance sustainability.
The partnership highlights not just economic gains but provides a secure sustainable future for many upcoming generations. Opportunities for collaboration in technology and innovation was mentioned by Al-Budaiwi in many areas like AI, big data and financial technology.
The given expertise in this field will boost innovation and enhance sustainable growth for both sides.
Al-Budaiwi pointed out the importance of economic cooperation in the partnership between GCC, Brazil and India. He stated that the foundation of the trade is their economic cooperation. It also acts as a cornerstone upon which the commercial and investment ties are built.
He was upbeat about the future, pointing out that these strategic alliances should develop, helping the economies of the GCC and its allies as well as promoting the sustainability and stability of the world economy.
Al-Budaiwi declared that a Joint Action Plan for 2024–2028 had been agreed upon by both parties to further collaboration, and that the plan would be implemented and improved with coordination between India and the GCC by the General Secretariat.
In his statement during the GCC-India Strategic Dialogue, Al-Budaiwi emphasized the GCC, India, and Brazil’s common goal of fostering greater economic cooperation. A framework for enhancing connections in innovation, sustainability, and economic integration was formed during the event, which was presided over by the prime minister of Qatar and attended by the minister of external affairs of India.
