How Indian economy is dependent on Muslim countries ?

 

GCC is a regional, intergovernmental political economic union comprising six countries — Bahrain, Kuwait, Oman, Qatar, the UAE, and Saudi Arabia. Region wise, it is the fourth-largest trading partner for India, following North America, European Union, and Northeast Asia.

Most importantly, India is dependent on these countries to meet its energy needs. Of the total imports from West Asia, nearly two-thirds comprise petroleum products.

As far as India’s overall import basket is concerned, petroleum products have a share hovering over 30 per cent. For instance, a fifth of the total crude oil imports is met by Iraq, followed by Saudi Arabia and the UAE at 18 and 10 per cent, respectively.

The UAE was also India’s second-largest export and import market in 2021-22 (FY22).

Similarly, Saudi Arabia was India’s fourth-largest trading and import partner in the last fiscal year.

In February, India and the UAE signed a Comprehensive Economic Partnership Agreement (CEPA). The trade pact was implemented last month.

India’s exports to the six GCC nations stood at $43.93 billion in FY22, up 58.3 per cent on-year, while imports stood at $110.72 billion, up nearly 86 per cent on-year.

The share of exports was 10.4 per cent, compared to the total exports, while that of imports stood at 18 per cent in 2020-21.

Petroleum products, precious and semi-precious stones, and plastics are the top imported items from the GCC.

Cereals, electrical equipment, apparel, and machinery are the top exported items in the region.

Biswajit Dhar, Jawaharlal Nehru University Professor said that the Gulf is an important region for India in terms of economic ties.

“UAE is the second largest export destination for India. India also meets its crude oil requirements from the Gulf region. After the UAE CEPA, there has been talks of a trade deal with the Gulf Cooperation Council. Apart from that lot of Indian exports that go to UAE are reexported to Africa and other countries. That’s why it is an important hub for Indian exports,” Dhar said.

Largest trading partners with India

India's largest trade partners with their total trade (sum of imports and exports) in billions of US dollars for the financial year 2019–20 were as follows:

Rank	Country	Exports	Imports	Total Trade	Trade Balance
1	United States	73.3	40.3	119.42	33.0
2	China	16.61	65.26	81.87	-48.65
3	United Arab Emirates	28.81	30.22	59.03	-1.41
4	Saudi Arabia	6.39	20.32	26.71	-13.93
5	Switzerland	1.21	16.9	18.11	-15.69
6	Germany	8.21	13.69	21.9	-5.48
7	Hong Kong	13.7	20.34	34.04	-6.64
8	Indonesia	4.12	15.06	19.18	-10.94
9	South Korea	4.85	15.65	20.5	-10.8
10	Malaysia	3.71	9.08	16.93	-5.30
11	Singapore	7.72	9.31	16.93	-1.59
12	Nigeria	2.22	9.95	16.36	-11.00
13	Belgium	5.03	8.26	16.33	-5.29
14	Qatar	0.90	9.02	15.66	-13.55
15	Japan	4.66	9.85	15.52	-4.75
16	Iraq	1.00	10.84	15.08	-13.42
17	Kuwait	1.25	4.97	14.58	-12.18
18	United Kingdom	8.83	5.19	14.34	4.30
19	Iran	2.78	6.28	13.13	-4.78
20	Australia	3.26	8.90	13.03	-7.47
21	Venezuela	0.13	5.70	11.99	-11.47
22	South Africa	3.59	5.95	11.72	-3.40
-	Remaining Countries	126.78	104.92	231.70	21.86
India's Total		330.08	514.08	844.16	-184.0

Of the top 22 trading partners, 9 are Muslim countries, so Indian politicians should keep in mind that if India's impression with in Muslim countries is damaged, it will be devastating for their economy.

let's see India's remittance resources:

of the top 10 remittance sender countries of India 5 are Muslim countries.

source-Wikipedia, business-standard