Trade gap with Arab block to narrow

Export-import transactions with the Arab block, India’s largest trade partner, may close the fiscal down 14% year on year despite a drop of more than 35% seen during the six months to September.Even better, trade numbers could double by 2014, believes Anand Sharma, minister for commerce and industry. “We are likely to see a trade of $114 billion this year with the region,” Sharma said, inaugurating the second Indo-Arab investment project conclave, organised by the government in association with the Federation of Indian Chambers of Commerce and Industry. The projected figure is 14% short of the year-ago mark and points to a strong recovery in India’s trade with the region since September, thanks to increasing oil prices and a pick-up in India’s exports. As of September, imports from the Arab region were down 44% and exports to the region were down 28%, which meant the overall trade was down 35% year on year.India largely exports food items, machinery, textiles and precious stones to the region, while nearly 75% of imports from the region is oil. About two-thirds of India’s exports to the Arab region, around $25 billion annually, are routed through the Arab Emirate of Dubai, making the United Arab Emirates India’s largest trading partner, ahead of the US and China. Projects worth around $32 billion, including both inward and outward investments, will be discussed at the conclave by the various governments and corporate delegates from the region, comprising the Middle East and North Africa.Sheikha Lubna Bint Khalid Al Qasimi, UAE’s foreign trade minister, said her country is especially interested in drawing Indian investments into two energy related sectors in her country. “We are working on two areas —- first is the renewable sector, solar and wind energy, and the other is nuclear energy,” she said. Meanwhile, Sharma hinted that some of the exporter stimuli may be withdrawn in the upcoming Budget.