India-Arab trade poised for major expansion, may hit $500 billion: IACCIA
New Delhi, Oct 14
India's trade with Arab nations, currently valued at over $150 billion, has the potential to grow to $500 billion in the next 10 to 20 years, with significant opportunities emerging across sectors as Gulf investors look to expand their presence in India, according to an industry body official on Wednesday.
Speaking ahead of the India-Arab Business Conclave 2026, scheduled to be held in New Delhi on December 18-19, Indo-Arab Chamber of Commerce, Industry and Agriculture (IACCIA) Secretary General Waiel Awad said representatives from all 22 Arab countries have been invited to participate in the event, which aims to strengthen commercial ties and facilitate investment partnerships.
Awad said bilateral trade between India and Arab nations has already crossed $150 billion and expressed confidence that the figure could reach $500 billion over the next 10 to 20 years. He noted that multiple sectors in India are opening up for investment and that several Arab investors are keen to deploy capital in the country.
According to him, providing the right platform for engagement, along with attractive incentives and investment opportunities from the Indian government, could significantly boost participation from Gulf investors and support long-term economic cooperation.
The conclave comes at a time when several Arab economies are facing mounting economic challenges and are looking to diversify partnerships and investment destinations.
The International Monetary Fund (IMF), in its October 2026 World Economic Outlook report, warned that the ongoing conflict in the Middle East and the closure of the Strait of Hormuz could push the Middle East and Central Asia region into economic contraction in 2026. The IMF projected regional growth to decline from 3.7 per cent in 2025 to negative 0.3 per cent in 2026 before rebounding to 6.3 per cent in 2027.
The report said smaller Gulf oil-producing nations are likely to be among the hardest hit. Kuwait's economy is projected to shrink by 16.7 per cent in 2026, followed by Iraq at 16 per cent, Qatar at 15.6 per cent, and Bahrain at 11.3 per cent, largely due to disruptions in energy production and transportation.
However, the IMF expects a strong recovery in 2027, with Iraq's economy forecast to grow by 19 per cent, Qatar by 18.8 per cent, Kuwait by 17.1 per cent, and Bahrain by 13.9 per cent.
— IANS
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