India's Trade with Arab Countries Hits record High of US$246 Billion in FY 2023

India's trade with Arab countries has reached a record high of US$246 billion marking a significant milestone in the bilateral relationship between the two regions. India's imports from Arab countries were valued at US$177.9 billion, while its exports were valued at US$68.3 billion. India's trade volume with Arab countries accounted for a substantial portion of its global engagements, making up 21.1% of its total world trade. Despite the impressive figures, the trade deficit with Arab nations amounted to a staggering US $109.6 billion due to its high volume of petroleum product imports.

The United Arab Emirates (UAE) emerges as a crucial trade partner for India, accounting for a substantial portion of India's trade with Arab nations. With an export value of $31,609 million and imports totaling $53,233 million, the total trade between India and the UAE reached $84,841 million. Despite a trade deficit of $21,624 million, the UAE remains a significant contributor to India's overall trade dynamics.

Saudi Arabia, another key player in the Arab region, exhibits a total trade volume of $52,763 million with India. While Indian exports to Saudi Arabia stand at $10,728 million, imports surge to $42,035 million, resulting in a notable trade deficit of $31,308 million.

Iraq, Qatar, and Kuwait also play integral roles in India's economic interactions with the Arab world. Iraq, with exports of $2,697 million and imports of $34,386 million, exhibits a trade deficit of $31,689 million. Qatar's trade volume with India stands at $18,775 million, with a trade deficit of $14,841 million, while Kuwait's trade deficit is marked at $10,687 million, emphasizing the need for nuanced strategies to enhance economic cooperation.

Oman, Egypt, Jordan, Morocco, and Algeria collectively contribute to India's trade with the Arab region. Oman's export and import values are $4,477 million and $7,911 million, respectively, resulting in a trade deficit of $3,434 million. Egypt, on the other hand, maintains a trade surplus with India, with exports of $4,110 million and imports of $1,952 million.