India has sustained its export growth notwithstanding the global challenges emerging due to issues like the Israel-Hamas war and the Budget has laid out a strong foundation to push the economic growth, Commerce and Industry Minister Piyush Goyal said on Thursday. The minister said that certainly, the country is facing 'very severe' challenges due to these conflicts.

 

'But despite these challenges, India continues to be a bright spot in terms of economy, economic growth, and we continue to broadly sustained our exports...I think, the Indian story is a story of resilience, and strength,' Goyal told PTI in a post-budget interaction.

 

In her budget speech, Finance Minister Nirmala Sitharaman stated that geopolitically, global affairs are becoming more complex and challenging due to wars and conflicts.

 

'Globalization is being redefined with reshoring and friend-shoring, disruption and fragmentation of supply chains, and competition for critical minerals and technologies. A new world order is emerging after the Covid pandemic,' Sitharaman said.

 

The Russia-Ukraine war, the Isreal-Hamas conflict and the Red Sea crisis have disrupted the global supply chains. Red Sea is the busiest trade route as it accounts for 30 per cent of global container traffic and 12 per cent of global trade.

 

Goyal said due to these challenges the growth potential on the trade front that we had is 'slowing very significantly and showing weakness'.

 

He added that due to these wars and crises, 'our logistics, our shipment lines, out of India for exports' are getting impacted significantly.

 

India's exports rose by only 1 per cent to USD 38.45 billion in December 2023 while the trade deficit narrowed to a three-month low of USD 19.8 billion, according to the government data.

 

Exports during April-December this fiscal dipped by 5.7 per cent to USD 317.12 billion. Imports contracted by 7.93 per cent to USD 505.15 billion, leaving a trade deficit of USD 188.02 billion in the first three quarters as against USD 212.34 billion in April-December 2022.

 

Welcoming the budget proposals, Goyal said that the Budget has focused on every section of the society.

 

Announcements pertaining to e-mobility promotion and increase in infrastructure spending will provide 'more and more' opportunities for business and domestic industry, Goyal stated.

 

'Every infrastructure project means greater degree of sale of goods, steel, cement, furnishing. It touches so many different segments of industry,' Goyal said.

 

'When we talk about greater exports and greater economic activity, people get opportunities in services, logistics, the transportation sector gets a leg up,' the minister said.

 

He said that the Budget has laid out a strong foundation to push the country's economic growth.

 

Sitharaman announced a Rs 11.11 lakh crore spending on infrastructure and vowed to continue reforms as she resisted resorting to populist measures in Modi government's last Budget before general elections, instead choosing to stay on the path of cutting deficit while bolstering measures for focus groups.

 

Giving a sneak preview of what will be the Modi government's priority in the third term, if re-elected, she said economic policies that foster and sustain growth, facilitate inclusive development and contribute to generation of resources to power investments will be adopted towards making India a developed country by 2047.

 

'The next five years will be years of unprecedented development and golden moments to realise the dream of developed India by 2047,' she said.

The interim budget eschews populism as it is not election-driven because the government prioritises national well-being, minister for commerce and industry, consumer affairs, food and public distribution and textiles Piyush Goyal told Shambhavi Anand in an interview.

 

Talks are going on with many countries on different levels at different times. Many BITs were cancelled in 2016 so many of them are talking. Many of them don't even want the BITs in their original form because it has become passe. For example, many countries don't like investor - state dispute settlement (ISDS). Many countries don't like to include tax.

 

For example, if you take the UK, as much money has been invested in India, we have also invested equally. Our investments in the UK are steep. The difference is that there was a time when India used to negotiate from a position of weakness. People would dictate terms to India. We would do things under pressure. Some of the deals signed in the past, are really detrimental to India. Our imports from those countries have gone up and our exports haven't gone up at all. They were not done with any great stakeholder consultation like we do.

 

Our style is that whatever we'll do, we'll do it with great confidence that what we are doing is for the good of India. FTAs, BITs will be from a position of strength and confidence.

 

How worrying is the Red Sea situation?

 

We are concerned that shipments are getting delayed; also getting more expensive if it goes on for longer. It's a matter of concern. We were hopeful that it would get resolved but it seems to be pulling longer, otherwise the exports would have again returned to growth. Many governments, including India, are taking precautionary measures to safeguard free flow of vessels and to attack or protect from this type of activities. But the jury's still out. We don't know exactly.

 

The FM said expansion of existing airports and development of new airports will continue expeditiously as Indian carriers have collectively ordered over 1000 new aircraft. What do you think?

 

My sense is that in the next 20-25 years, India will be the largest market for aircraft. There are several manufacturers who want to locate in India.

 

What has the budget done to spur growth?

 

Our goal is that every decision taken is in the interests of India. Look at the investment made in infrastructure, for the second time in a row. Money spent on infrastructure has a transformational impact on people's lives as it gives a boost to several industries such as steel, cement, furnishing, tiles and marbles.

 

Today capacity utilisation in steel is around 90%. I am from the steel industry. It's like a dream. With better infrastructure, logistics costs come down. Then you become more competitive. There's more demand for goods and services.

 

There has been an increase in the outlay for PLIs. Are there any new sectors for which the PLI scheme will be launched?

 

Don't look at the outlay. This will increase in leaps and bounds. See every industry has a gestation period. Those PLI schemes just started four years back. Electronics and all where the gestation period is small, they have come into operations, but like textile PLI, auto component, steel - they have longer gestation period. So, as these will come into operation, then this will grow by leaps and bounds and if all this gets used up and more is required, we will provide more

New Delhi, The government on Thursday approved the signing and ratification of a Bilateral Investment Treaty (BIT) between India and the United Arab Emirates (UAE). The pact would help promote investments between the two countries.

 

'The Union Cabinet chaired by Prime Minister Narendra Modi, today has given its approval for signing and ratification of BIT between India and the UAE,' an official statement said.

 

The treaty is expected to improve the confidence of investors, especially large investors, resulting in an increase in foreign investments and overseas direct investment (ODI) opportunities, the statement said, adding that this may have a positive impact on employment generation.

 

'The approval is expected to increase investments in India and is likely to help in realising the goal of Atmanirbhar Bharat by encouraging domestic manufacturing, reducing import dependence, increasing exports etc,' it added.

 

The two nations have also implemented a free trade agreement in May 2022.

 

India received an FDI of USD 16.7 billion between April 2000 and September 2023.

India is negotiating bilateral investment treaties with different countries with a view to promote foreign inflows, Finance Minister Nirmala Sitharaman said on Thursday. She said that foreign direct investment (FDI) has doubled during 2014-23 to USD 596 billion compared to the inflow received during 2005-14.

 

'For encouraging sustained foreign investment, we are negotiating bilateral investment treaties with our foreign partners, in the spirit of 'first develop India',' she said while presenting the interim Budget 2024-25.

 

India is negotiating this treaty with countries such as the UK.

 

These investment treaties help in promoting and protecting investments in each other's countries.

These pacts are important as India has earlier lost two international arbitration cases against British telecom giant Vodafone and Cairn Energy plc of the UK over the retrospective levy of taxes.

 

Foreign direct investment (FDI) equity inflows in India declined 24 per cent to USD 20.48 billion in April-September 2023, according to government data.

 

The total FDI -- which includes equity inflows, reinvested earnings and other capital -- contracted 15.5 per cent to USD 32.9 billion during the period under review against USD 38.94 billion in April-June 2022.

 

The top investor countries include Singapore, Mauritius, the US, the UK, and the UAE.

 

Computer software and hardware, trading, services, telecommunication, automobile, pharma and chemicals are some of the key sectors that attract FDI into India.

 

An official had earlier said that hardening interest rates globally and worsening geopolitical situation impacted FDI inflows into India in 2022-23.

With the ‘mantra’ of ‘Sabka Saath, Sabka Vikas, and Sabka Vishwas’ and the whole of nation approach of 'Sabka Prayas', the Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman presented the Interim Union Budget 2024-25 in Parliament, today. The key highlights of the Budget are as follows:

 

Part A

Social Justice

 

Prime Minister to focus on upliftment of four major castes, that is, ‘Garib’ (Poor), ‘Mahilayen’ (Women), ‘Yuva’ (Youth) and  ‘Annadata’(Farmer).

‘Garib Kalyan, Desh ka Kalyan’

 

Government assisted 25 crore people out of multi-dimensional poverty in last 10 years.

DBT of Rs. 34 lakh crore using PM-Jan Dhan accounts led to savings of Rs. 2.7 lakh crore for the Government.

PM-SVANidhi provided credit assistance to 78 lakh street vendors. 2.3 lakh have received credit for the third time.

PM-JANMAN Yojana to aid the development of particularly vulnerable tribal groups (PVTG).

PM-Vishwakarma Yojana provides end-to-end support to artisans and crafts people engaged in 18 trades.

Welfare of ‘Annadata’

 

PM-KISAN SAMMAN Yojana provided financial assistance to 11.8 crore farmers. 

Under PM Fasal BimaYojana, crop insurance is given to 4 crore farmers

Electronic National Agriculture Market (e-NAM) integrated 1361 mandis, providing services to 1.8 crore farmers with trading volume of Rs. 3 lakh crore.

Momentum for Nari Shakti

 

30 crore Mudra Yojana loans given to women entrepreneurs.

Female enrolment in higher education gone up by 28%.

In STEM courses, girls and women constitute 43% of enrolment, one of the highest in the world.

Over 70% houses under PM Awas Yojana given to women from rural areas.

PM Awas Yojana (Grameen)

 

Despite COVID challenges, the target of three crore houses under PM Awas Yojana (Grameen) will be achieved soon.

Two crore more houses to be taken up in the next five years.

Rooftop solarization and muft bijli

 

1 crore households to obtain 300 units free electricity every month through rooftop solarization.

Each household is expected to save Rs.15000 to Rs.18000 annually.

Ayushman Bharat

 

Healthcare cover under Ayushman Bharat scheme to be extended to all ASHA workers, Anganwadi Workers and Helpers.

Agriculture and food processing

 

Pradhan Mantri Kisan Sampada Yojana has benefitted 38 lakh farmers and generated 10 lakh employment.

Pradhan Mantri Formalisation of Micro Food Processing Enterprises Yojana has assisted 2.4 lakh SHGs and 60000 individuals with credit linkages.

Research and Innovation for catalyzing growth, employment and development

 

A corpus of Rs.1 lakh crore to be established with fifty-year interest free loan to provide long-term financing or refinancing with long tenors and low or nil interest rates.

A new scheme to be launched for strengthening deep-tech technologies for defence purposes and expediting ‘atmanirbharta’.

Infrastructure

 

Capital expenditure outlay for Infrastructure development and employment generation to be increased by 11.1 per cent to Rs.11,11,111 crore, that will be 3.4 per cent of the GDP.

Railways

 

3 major economic railway corridor programmes identified under the PM Gati Shakti to be implemented to improve logistics efficiency and reduce cost

Energy, mineral and cement corridors

Port connectivity corridors

High traffic density corridors

Forty thousand normal rail bogies to be converted to Vande Bharat standards.

Aviation Sector

 

Number of airports in the country doubled to 149.

Five hundred and seventeen new routes are carrying 1.3 crore passengers.

Indian carriers have placed orders for over 1000 new aircrafts.

Green Energy

 

Coal gasification and liquefaction capacity of 100 MT to be set up by 2030.

Phased mandatory blending of compressed biogas (CBG) in compressed natural gas (CNG) for transport and piped natural gas (PNG) for domestic purposes to be mandated.

Tourism sector

 

States to be encouraged to take up comprehensive development of iconic tourist centres including their branding and marketing at global scale.

Framework for rating of the tourist centres based on quality of facilities and services to be established.

Long-term interest free loans to be provided to States for financing such development on matching basis.

Investments

 

FDI inflow during 2014-23 of USD 596 billion was twice of the inflow during 2005-14.

Reforms in the States for ‘Viksit Bharat’

 

A provision of Rs.75,000 crore rupees as fifty-year interest free loan is proposed to support milestone-linked reforms by the State Governments.

Revised Estimates (RE) 2023-24

 

RE of the total receipts other than borrowings is Rs.27.56 lakh crore, of which the tax receipts are Rs.23.24 lakh crore.

RE of the total expenditure is Rs.44.90 lakh crore.

Revenue receipts at Rs.30.03 lakh crore are expected to be higher than the Budget Estimate, reflecting strong growth momentum and formalization in the economy.

RE of the fiscal deficit is 5.8 per cent of GDP for 2023-24.

Budget Estimates 2024-25

 

Total receipts other than borrowings and the total expenditure are estimated at Rs.30.80 and Rs.47.66 lakh crore respectively.

Tax receipts are estimated at Rs.26.02 lakh crore.   

Scheme of fifty-year interest free loan for capital expenditure to states to be continued this year with total outlay of Rs.1.3 lakh crore.

Fiscal deficit in 2024-25 is estimated to be 5.1 per cent of GDP

Gross and net market borrowings through dated securities during 2024-25 are estimated at Rs.14.13 and Rs.11.75 lakh crore respectively.

 

Part B

Direct taxes

 

FM proposes to retain same tax rates for direct taxes

Direct tax collection tripled, return filers increased to 2.4 times, in the last 10 years

Government to improve tax payer services

Outstanding direct tax demands upto Rs 25000 pertaining to the period upto FY 2009-10 withdrawn

Outstanding direct tax demands upto Rs 10000 for financial years 2010-11 to 2014-15 withdrawn

This will benefit one crore tax payers

Tax benefits to Start-Ups, investments made by Sovereign wealth funds or pension funds extended to 31.03.2025

Tax exemption on certain income of IFSC units extended by a year to 31.03.2025 from 31.03.2024

Indirect taxes

 

FM proposes to retain same tax rates for indirect taxes and import duties

GST unified the highly fragmented indirect tax regime in India

Average monthly gross GST collection doubled to Rs 1.66 lakh crore this year

GST tax base has doubled

State  SGST revenue buoyancy (including compensation released to states) increased to 1.22  in post-GST period(2017-18 to 2022-23) from 0.72 in the pre-GST period (2012-13 to 2015-16)

94% of industry leaders view transition to GST as largely positive

GST led to supply chain optimization

GST reduced the compliance burden on trade and industry

Lower logistics cost and taxes  helped reduce prices of goods and services, benefiting the consumers

Tax rationalization efforts over the years

 

No tax liability for income upto Rs 7 lakh, up from Rs 2.2 lakh in  FY 2013-14

Presumptive taxation threshold for retail businesses increased to Rs 3 crore from Rs 2 crore

Presumptive taxation threshold for professionals increased to Rs 75 lakh from Rs 50 lakh

Corporate income tax decreased to 22% from 30% for existing domestic companies

Corporate income tax rate at 15% for new manufacturing companies

Achievements in tax-payer services

 

Average processing time of tax returns has reduced to 10 days from 93 days in 2013-14

Faceless Assessment and Appeal introduced for greater efficiency

Updated income tax returns, new form 26AS and prefilled tax returns for simplified return filing

Reforms in customs leading to reduced Import release time

Reduction by 47% to 71 hours at Inland Container Depots

Reduction by 28% to 44 hours at  Air Cargo complexes

Reduction by 27% to 85 hours at Sea Ports

Economy-then and now

 

In 2014 there was a responsibility to mend the economy and put governance systems in order. The need of the hour was to:

Attract investments

Build support to the much-needed reforms

Give hope to the people

 The government succeeded with a strong belief of ‘nation-first’

'It is now appropriate to look at where we were till 2014 and where we are now': FM

The Government will lay a White Paper on the table of the house.

Addressing a joint session of the Lok Sabha and Rajya Sabha in the new Parliament building, President Murmu emphasised the government's commitment to people-centric development.

She stated that the foundation of New India's impressive structure lies in the pillars of youth power, women, farmers, and the underprivileged.

President Murmu highlighted the allocation of Rs 2.80 lakh crore to farmers under the Pradhan Mantri Kisan Samman Nidhi Yojana and the three-fold increase in easy loans for farmers over the past decade.

 

She expressed that welfare schemes are not just facilities but have significantly improved people's lives.

The President mentioned the historic achievements of the country in the past year, with 'Make in India' and 'Aatmanirbhar Bharat' becoming strengths. She praised the defense production surpassing the Rs 1 lakh crore mark.

 

This marked the first address by the President to the joint sitting of the two Houses in Parliament. She described the new Parliament building as a symbol of India's culture and civilization, built during the Amirt Kaal to make India a developed country by 2047.

The President acknowledged the historic significance of the past year and commended the strides made in poverty alleviation, resonating with the long-standing goal of 'Gareebi Hatao.' The suspension of opposition MPs, previously suspended for rule violations during the winter session, was revoked ahead of the budget session.

 

Finance Minister Nirmala Sitharaman is scheduled to present the interim budget on February 1, and the budget session of Parliament will continue until February 9.

This session is expected to be the last of the present Lok Sabha, with general elections likely to take place in April-May.

In order to increase the availability of wheat and rice in the open market and to control the prices of wheat and rice, the Government of India has been offloading wheat and rice in the market through weekly e-auction from 28.06.2023. A total of 101.5 LMT wheat and 25 LMT rice has been allocated by the Government of India for offloading under Open Market Sale Scheme (Domestic) [OMSS(D)]. Wheat is being offered at reserve price of Rs. 2150/Qtl for FAQ and Rs. 2125/Qtl for URS. The reserve price of rice is being kept at Rs. 2900/Qtl.

 

The first e-auction of this current phase was held on 28.06.2023 wherein 0.86 LMT wheat was sold in the open market. However, to increase the availability of wheat and to cater to the demand of wheat in the open market, the weekly offering of wheat in the e-auction is being gradually increased from initial 2 LMT to the present weekly offering of 4.5 LMT. As a result, the weekly sale of wheat has increased to more than 4 LMT. Till 24.01.2024, 71.01 LMT wheat has been sold under OMSS(D).

 

The first e-auction of rice under OMSS(D) for 2023-24 was held on 5th July 2023. In order to increase the sale of rice in the open market, GoI reduced the Reserve Price of rice from Rs. 3100/ Qtl to Rs. 2900/Qtl. and the minimum and maximum quantity of rice was revised to 1 MT and 2000 MT respectively.

 

In addition to this, regular advertisement was done by the FCI regional offices for wider outreach and as a result, the sale of rice gradually increased. Till 24.01.2024, 1.62 LMT rice has been sold in the open market which is the highest sale in any year under OMSS (D) i.r.o. rice to private traders. The previous highest was 42000 MT.

 

The Central Government is also providing wheat to cooperative agencies like NAFED/NCCF/Kendriya Bhandar/MSCMFL under Bharat Atta scheme. 4 LMT has been allocated by GOI under this scheme from the total 101.5 LMT of OMSS(D). Under this subset of OMSS (D) scheme, Semi-government/Cooperative agencies are getting wheat at Rs. 21.50/Kg which has been revised to Rs. 17.15/ kg w.e.f. 16.12.2023 for converting to atta and selling to general public at no more than Rs. 27.50/Kg. Till 29.01.24, 2,80,456 MT wheat has been sold to these agencies.

 

The Government of India remains committed to ensuring food security, stabilizing prices, and supporting both consumers and stakeholders through these strategic interventions.

Department for Promotion of Industry and Internal Trade (DPIIT) is conducting nationwide events under its ‘One District One Product Sampark’ initiative. These events create awareness about the initiative and showcase success stories emerging from various districts across the nation. In alignment with the goals of the Prime Minister Shri Narendra Modi, these narratives illustrate instances of ‘atmanirbharta’ or self- reliance, and the revival of indigenous industries. The workshops highlight collaborative efforts between districts, states, and centre, emphasizing a commitment to fostering balanced regional development.

 

The workshops, held in 15 states so far such as Uttar Pradesh, Uttarakhand, Rajasthan, Gujarat, Punjab, West Bengal, Bihar, Jharkhand, Jammu & Kashmir, Chhattisgarh, Sikkim, Nagaland, Goa, Maharashtra, and Meghalaya, have successfully showcased ODOP success stories through local and national newspapers in multiple languages, including English, Hindi, and regional languages. The tangible impact of ODOP Sampark becomes apparent through live interactions with sellers in workshops, where identified gaps in market linkages have spurred proactive initiatives by DPIIT. These initiatives encompass providing support for e-commerce onboarding, collaborating with states to formulate ODOP policies, enhancing packaging strategies, and facilitating connections between sellers at the central level to boost domestic and global promotions.

 

Many artisans and farmers have been sensitized about the Government’s ODOP initiative as part of these events. At these events, attendees are immersed in a cultural showcase, experiencing the richness of each State's renowned products through a live display that highlights a diverse range of local offerings. The workshops serve multiple objectives, providing a platform to discuss state and central schemes, address doubts and challenges, showcase products, and raise awareness around initiatives benefiting artisans and farmers. 

 

ODOP Sampark, initiated by DPIIT in collaboration with the Press Information Bureau (PIB) and State Governments, has emerged as a distinctive platform fostering collaboration among various stakeholders, including government officials, ODOP sellers, media representatives, and key stakeholders. These events provide a dynamic space for real-time insights, addressing challenges, and exploring opportunities faced by local industries, contributing to immediate growth and development.

 

States have one product from each district as the primary product. Districts having more than one product identified have categorized them as secondary or tertiary products. These products are covered under various sectors including Agriculture, Manufacturing, Handloom and Textiles, Handicraft, Food Processing, Marine, and services.

 

As ODOP Sampark continues to evolve, the workshops remain instrumental in not only highlighting success stories but also in addressing challenges and paving the way for a more inclusive and thriving ecosystem for ODOP initiatives nationwide.  

 

Speaking as the chief guest at a discussion meeting on 'What to do to control the rice market,' the minister addressed concerns about the recent fluctuations in the rice market, emphasising the government's commitment to maintaining stability.

 

Minister Majumder acknowledged that the rice market had remained stable for nine months, even during the challenging times of the COVID-19 pandemic.

 

He, however, expressed his concern about the recent surge in rice prices and attributed it to the control exerted by a few businessmen in specific districts over the paddy and rice market.

 

The minister assured that the government is actively identifying and taking action against those responsible for manipulating the market.

 

Pointing at mill owners, Majumder urged them to act with a sense of social responsibility and conscience.

 

He emphasised the need for mill owners to contribute to the welfare of society, urging them to refrain from any exploitative practices that could lead to undue advantages for a select few.

 

Expressing his desire for farmers to receive higher prices for their paddy, the food minister highlighted the paradox where despite the increased cost of paddy, farmers are not reaping the benefits. Instead, he noted that hoarders are taking advantage of the situation.

 

The government is actively taking measures against such hoarders to ensure a fair market for farmers, Majumder added.

 

To further regulate the rice market, the minister proposed a new law requiring the price of rice at the millgate to be clearly labeled on rice bags, along with the date of manufacture, and mentioned that the legislation is in progress and is expected to be effective soon.

 

The minister emphasized that once implemented, this law would prevent the sale of paddy and rice under misleading names, such as Miniket.

 

During the discussion meeting, the Deputy Commissioner of Kushtia, Secretary of the Ministry of Food Md Ismail Hossain, and Director General of Food Department Sakhawat Hossain delivered speeches as special guests.

 

The food secretary affirmed the government's vigilance over rice prices and warned that any attempts to manipulate prices would be met with legal actions.

 

In a surprise visit to various rice mills in Khawaja Nagar, Kushtia, Food Minister Sadhan Chandra Majumder, along with other officials, inspected operations at Desh Agro, Subarna Auto-Rice Mill, Allah Dan Auto-Rice Mill, Swarna Auto-Rice Mill, and Rashid Auto-Rice Mill. The district administration took immediate action by sealing the godown of M/s Subarna Auto Flower Mill due to illegal storage of wheat and flour.

 

Besides, the evidence of illegal rice storage led to the sealing of a rice godown belonging to one of the mills.

 

The government's proactive stance and commitment to regulating the rice market demonstrate a concerted effort to ensure fair prices for farmers and stability in the overall rice industry.

 

The measures taken against illegal storage underscore the determination to root out any practices that may compromise the integrity of the market.

Trade across the corridor linking India with the Mena region and Turkey (Menat) is expected to grow 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 key Menat 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 Menat countries 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 GCC bloc, 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 non-oil trade between the two countries 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 New Delhi 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 have also poured investments into the packaging materials industry in Turkey.

 

'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 Indian companies.

 

The report also highlights growing opportunities in India for Menat countries, especially in the digital economy and in sectors such as software as a service, ­FinTech, e-commerce and health technology.

 

India's digital economy is forecast to account for 12 per cent to 13 per cent of the country's gross domestic product by 2030, from 0.5 per cent in 2010 and 4.5 per cent in 2022, providing new opportunities.

 

Companies such as Abu Dhabi’s Mubadala Investment Company are already investing in India’s digital sector. In 2020, Mubadala bought a 1.85 per cent stake in Reliance Industries' digital platform in a $1.2 billion deal.

 

Tier-1 cities such as New Delhi, Ahmedabad, Bengaluru, Mumbai, Chennai and Hyderabad, as well as Tier-2 cities including Chandigarh, Coimbatore, Kochi, Jaipur, Nagpur and Mysuru offer investment opportunities.

 

'India’s Tier-2 cities are an untapped opportunity for Mena corporates considering lower operational costs, niches for specific industrial activities or shifting ancillary operations,' Ms Gomes said.