India’s exports to Qatar on way to touch $1 billion in FY2014-15

2022 FIFA World Cup in presents an opportunity for Indian exporters to increase infrastructure and other exports to Qatar The Dollar Business Bureau

UAE is a prominent export and re-export destination for Indian goods in the Gulf region

With half yearly exports of over $550 million in FY2014-15, India’s exports to Qatar are likely to touch $1 billion in FY2014-15. However, it is a small improvement in reducing the huge trade deficit of over $14 billion that India has with the Gulf nation. According to the International Trade Centre (ITC), India is the third largest export destination for Qatar (behind Japan and South Korea), while Qatar is India's 11th largest trading partner. However, India runs a huge trade deficit with Qatar, with imports standing at around $15.7 billion in FY2013-14, of which around $14.6 billion comprises imports of oil, and plastics and chemicals dominating the rest of the share.

Source - ITC

India’s exports to Qatar has increased steadily in the recent years, thanks to higher shipments of food and construction materials. According to India’s Ministry of Commerce, exports to Qatar stood at around $375 million in 2010-11, but has grown to around $969 million in 2013-14. In FY2014-15 (April – September), India’s exports to Qatar stood at around $553.09 million. This is partly due to increasing privatisation taking place in Qatar and growing presence of Indian companies in the region. Qatar’s imports from India and India's trade balance are likely to improve with India’s focus on export diversification and decline in oil prices. Earlier this year, Indian trade representatives said that there is an opportunity for Indian exporters to increase their presence in Qatar as the Gulf nation will host the 2022 FIFA World Cup. India is also negotiating a Free Trade Agreement (FTA) with Qatar under the India - Gulf Cooperation Council (GCC) Framework Agreement. According to sources, there also exists export opportunity for India in electrical and electronic items, textiles, chemicals, precious stones, rubber, spices and cereals.

This article was published on December 18, 2014.

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The Dollar Business Bureau - Dec 18, 2014 02:09 IST

India’s exports to Qatar on way to touch $1 billion in FY2014-15

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