Trade across the corridor linking India with the Mena region and Turkey (Menat) is predicted to develop by 50 per cent to $190 billion by 2030 amid new funding alternatives, a report has stated.

There is an estimated $61 billion alternative for India, Asia’s third-largest economy, to spice up exports to key Menat markets such because the UAE, Saudi Arabia and Turkey by 2027, HSBC stated within the report.

It additionally affords export potential value $51 billion for Menat nations trying to increase abroad.

Some of the primary markets for India which have a excessive export potential embody the UAE ($32 billion), Saudi Arabia and Turkey ($11 billion every).

“Buoyed by strong mutual interests, solid economic fundamentals and enduring historical ties, corporates and investors are looking at an extensive set of opportunities in both directions,” stated Patricia Gomes, regional head of business banking, Middle East North Africa and Turkey at HSBC Bank Middle East.

India is trying to cement commerce and financial ties with the GCC bloc, in addition to different nations within the Middle East as they concentrate on the diversification of their economies away from oil.

In 2022, India signed the Comprehensive Economic Partnership Agreement with the UAE. The pact is predicted to spice up non-oil commerce between the 2 nations to $100 billion by 2030, from $60 billion two years in the past.

It can also be a part of the Middle East-Europe economic corridor that’s anticipated to extend commerce between New Delhi and different nations within the area.

Indian firms are investing in different nations within the Middle East amid the strengthening of ties.

In Egypt, Indian firms are investing in inexperienced hydrogen and electrical automobiles, in addition to in sectors equivalent to meals industries, chemical substances and tourism, in keeping with the report.

Indian producers have additionally poured investments into the packaging supplies business in Turkey.

“India’s increasing strengths as a food and agricultural producer and exporter are repositioning the India-GCC trade and investments relationship,” the report stated.

It added that the GCC was investing closely to rework its meals and agriculture business to spice up meals safety, which presents new funding alternatives for Indian firms.

The report additionally highlights rising alternatives in India for Menat nations, particularly within the digital economic system and in sectors equivalent to software program as a service, ­FinTech, e-commerce and well being expertise.

India’s digital economic system is forecast to account for 12 per cent to 13 per cent of the nation’s gross home product by 2030, from 0.5 per cent in 2010 and 4.5 per cent in 2022, offering new alternatives.

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Companies equivalent to Abu Dhabi’s Mubadala Investment Company are already investing in India’s digital sector. In 2020, Mubadala purchased a 1.85 per cent stake in Reliance Industries’ digital platform in a $1.2 billion deal.

Tier-1 cities equivalent to New Delhi, Ahmedabad, Bengaluru, Mumbai, Chennai and Hyderabad, in addition to Tier-2 cities together with Chandigarh, Coimbatore, Kochi, Jaipur, Nagpur and Mysuru provide funding alternatives.

“India’s Tier-2 cities are an untapped opportunity for Mena corporates considering lower operational costs, niches for specific industrial activities or shifting ancillary operations,” Ms Gomes stated.

Updated: February 01, 2024, 3:00 AM