Trade through the corridor connecting India with the Mena region and Turkey (Menat) is projected to increase by 50 per cent to $190B by 2030, driven by new investment opportunities, according to a report.
HSBC stated that India, as Asia’s third-largest economy, has a potential $61B opportunity to boost exports to key Menat markets such as the UAE, Saudi Arabia, and Turkey by 2027.
Moreover, Menat countries have export potential worth $51B as they look to expand overseas. Key markets for India with high export potential include the UAE ($32B), Saudi Arabia, and Turkey ($11B each).
Patricia Gomes, regional head of commercial banking, Middle East North Africa, and Turkey at HSBC, mentioned that strong mutual interests, solid economic fundamentals, and enduring historical ties are driving corporates and investors to explore opportunities in both directions.
India Expands Economic Ties with GCC and Middle East Through UAE Partnership
India aims to strengthen trade and economic ties with the GCC bloc and other Middle Eastern countries as they diversify their economies away from oil. The Comprehensive Economic Partnership Agreement signed with the UAE in 2022 is expected to boost non-oil trade between the two countries to $100B by 2030.
The Middle East-Europe economic corridor is anticipated to increase trade between New Delhi and other regional countries. Indian companies are investing in sectors such as green hydrogen, electric vehicles, food industries, chemicals, and tourism in Egypt. Additionally, Indian manufacturers are investing in the packaging materials industry in Turkey.
The report highlights that India’s growing strengths as a food and agricultural producer are reshaping the India-GCC trade and investment relationship.
The GCC’s significant investments in transforming its food and agriculture industry for enhanced food security present new opportunities for Indian companies.
The report also underscores increasing opportunities in India for Menat countries, particularly in the digital economy, including software as a service, FinTech, e-commerce, and health technology. India’s digital economy is forecasted to contribute 12-13 per cent of the country’s GDP by 2030, providing fresh investment prospects, according to The National News.
Tier-1 cities like New Delhi, Ahmedabad, Bengaluru, Mumbai, Chennai, and Hyderabad, as well as Tier-2 cities such as Chandigarh, Coimbatore, Kochi, Jaipur, Nagpur, and Mysuru, offer investment opportunities, with Tier-2 cities being considered an untapped opportunity due to lower operational costs and specific niches for industrial activities.
