The Gulf region has become an increasingly attractive investment destination for India, with the United Arab Emirates (UAE) accounting for the largest share of foreign direct investment flows from India during 2018-2022. The cumulative value of these investments reached $164.4 billion, representing an 85.5% increase compared to the period from 2013. This information was reported in the Alpen Capital report titled “The Gulf-India Corridor: Investment Opportunities.”
Sanjay Sudhir, Ambassador of the Republic of India to the UAE, highlighted the expanding relations between India and the Arab Gulf countries. He emphasized that investing in Indian startups presents an opportunity to participate in the technological revolution and benefit from high investment returns generated by India. Sudhir also mentioned significant reforms undertaken by the Indian government to simplify procedures, taxes, and implement a single window system for customs clearance, making it easier to do business in the country.
The Gulf Cooperation Council (GCC) countries are attracting increased interest as an investment destination due to regional governments’ efforts to enhance foreign direct investments through economic diversification strategies. The region’s strategic location plays a crucial role in linking countries across regions, solidifying its position as a significant commercial center between East and West. The cumulative value of foreign direct investment flows to the GCC region reached $164.4 billion during 2018-2022, a 60.1% increase compared to the previous period.
While trade between India and GCC countries has seen notable growth in recent years, India’s share of total foreign direct investments into GCC countries has decreased slightly. However, India remains an attractive destination for investors due to its status as the world’s fifth-largest economy and fastest-growing major economy. The cumulative balance of foreign direct investment inflows to India increased to $250.9 billion during 2018-2022, demonstrating its appeal for foreign investors.
In conclusion, there is immense potential for mutually beneficial cooperation and growth between India and GCC countries along their corridor. While there have been fluctuations in foreign direct investments into GCC countries from India over time, both regions have shown their commitment towards strengthening their partnerships and economic ties.
