South Africa tour of India 2019
Explained: Why India Can't Ignore Gulf Outrage?
Gulf-India relations are based not only on trade and commerce, but also on history and culture. Millions of Indians live and work in the Gulf region, which constitutes the largest chunk of remittances to India.
India's business ties with these countries have only become stronger over the years. For its oil needs, India relies heavily on this region.
More than a third of the UAE's population is Indians. In the Gulf, there are 89 lakh Indian citizens.
Most of the major retail stores and restaurants in the Gulf nations are owned by Indians. Boycotting Indian products could harm these businesses.
The Gulf states also rely on India. After the US, the UAE is India's 2nd-largest export destination and 3rd largest trading partner. In 2021-22, bilateral trade between India and the UAE reached $72.9 billion, with Indian exports accounting for $28.4 billion.
Under the newly concluded Comprehensive Economic Partnership Agreement, total trade will reach $100 billion by 2026.
The Gulf region is mainly reliant on food and cereal imports; over 85% of their food and 93% of their cereals are imported. Rice, spices, buffalo meat, fruits, vegetables, marine products, and sugar are key exports from India.
Gulf countries heavily rely on AAE Indian flyers. Global transit hubs in the Gulf, serviced by local carriers such as Emirates, Etihad Airways, and Qatar Airways, have reduced the share that US and India-based carriers hold of the lucrative international travel market.
Around half of remittances to India come from just 5 Gulf countries.
The Gulf supplies over 60% of India's crude. India imports a huge amount of crude oil from Gulf countries to meet its energy needs and for strategic and security reasons.
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