Trade on corridor linking India with Mena and Turkey to hit $190bn by 2030

Trade across the corridor linking India with the Mena region and Turkey is expected to expand by 50 per cent to $190 billion by 2030 amid new investment opportunities, a report has said.

There is an estimated $61 billion opportunity for India, Asia’s third-largest economy, to boost exports to the region’s key markets such as the UAE, Saudi Arabia and Turkey by 2027, HSBC said in the report.

It also offers export potential worth $51 billion for the countries in the region looking to expand overseas.

Some of the main markets for India that have a high export potential include the UAE ($32 billion), Saudi Arabia and Turkey ($11 billion each).

“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,” said Patricia Gomes, regional head of commercial banking, Middle East North Africa and Turkey at HSBC Bank Middle East.

India is looking to cement trade and economic ties with the Gulf, as well as other countries in the Middle East, as they focus on the diversification of their economies away from oil.

In 2022, India signed the Comprehensive Economic Partnership Agreement with the UAE. The pact is expected to boost bilateral non-oil trade to $100 billion by 2030, from $60 billion two years ago.

It is also part of the Middle East-Europe economic corridor that is expected to increase trade between India and other countries in the region. Indian companies are investing in other countries in the Middle East amid the strengthening of ties.

In Egypt, Indian companies are investing in green hydrogen and electric vehicles, as well as in sectors such as food industries, chemicals and tourism, according to the report.

Indian manufacturers are also investmenting in Turkey’s packaging materials industry.

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

It added that the GCC was investing heavily to transform its food and agriculture industry to boost food security, which presents new investment opportunities for India. The report also highlights growing opportunities in India for the countries in the region, including in the digital economy.