India has traditionally enjoyed close and friendly relations with the Arab world. These relations date back to ancient times – traders, scholars and diplomats would often traverse the Arabian Sea and the land routes linking India to West Asia and the Arab peninsula, transferring knowledge and merchandise. A shared cultural heritage, through the linkages of language and religion continues to lend energy to these historic bonds.
Today, the Arab world is part of India’s extended neighbourhood. India’s staunch commitment to the Palestinian cause, shared views on major international developments and strong economic and commercial relations form the bedrock of India-Arab relations. Much of India’s external trade passes along the Suez Canal, the Red Sea and the Gulf of Aden. There are vital Indian investments in countries stretching from Oman and Saudi Arabia to Egypt, Sudan and beyond. Moreover, India has large expatriate community in the Arab world, who have, over many generations, contributed to the countries of their residence. India’s total bilateral trade with the Arab world stands at over US$ 162 billion, and covers a variety of goods and services, from oil to infrastructure and telecommunications to consumer goods. It is home to more than 7 million Indians and caters to 60% of our crude oil imports.
Indian ties with Arab nations have always been cordial. India and Arab countries have a long-standing history of trade and economic relations. The Arab region is an important partner for India in terms of energy security and trade. In recent years, the bilateral trade between India and the Arab countries has been growing steadily.
The total bilateral trade between India and Arab countries USD 177.5 billion in the financial year 2020-21. In the same year, India's exports to the Arab region were valued at USD 52.52 billion, while imports from the Arab countries amounted to USD 124.98 billion. The major items that India exports to the Arab countries include petroleum products, gems and jewellery, engineering goods, chemicals, textiles, and agricultural products. On the other hand, India imports crude oil, petroleum products, natural gas, fertilizers, chemicals, and metals from the Arab countries. India and the Arab countries have been taking several measures to enhance their trade and economic relations.
The two sides have been exploring opportunities to diversify their trade basket and expand their economic cooperation in various sectors. They have also been working to boost investments, promote joint ventures, and facilitate business partnerships between their companies. Today, India has emerged as a major economic power, and the time has come to further deepen and re-define its economic and cultural relations with the Arab world.