India now second biggest exporter to the UAEMay 21st, 2008 - 6:58 pm ICT by admin
Dubai, May 21 (IANS) India has become the second biggest exporter to the United Arab Emirates (UAE) after China, following a sharp drop in the value of the US dollar-pegged local currency, the dirham. India has come to the second position for the first time after the creation of the UAE 37 years ago, the Emirates Business 24-7 newspaper reported, citing figures issued by the government-controlled Emirates Industrial Bank (EIB).
Stating that the UAE’s imports from India shot up seven times within five years, it said the value of Indian imports rose from 9.2 billion dirhams ($2.5 billion) in 2002 to 67 billion dirhams ($18.2 billion) in 2007.
According to the report, India accounted for around 16 percent of the UAE’s total imports of 418.7 billion dirhams ($114 billion) last year.
China’s exports to the UAE in 2007 stood at an all-time high of 69.9 billion dirhams ($19.03 billion), an increase of around 33.9 percent over the 52.2 billion dirhams ($14.2 billion) the previous year.
“India’s exports have steadily and rapidly grown over the past years,” the newspaper quoted the EIB report as stating.
“There are several factors for this increase, mainly the decline in the dirham against other currencies, mainly the UK pound and the euro by over 40 percent and because of the sharp fall in the US dollar, to which the dirham is pegged. This made imports from other countries, mainly Asian, more competitive,” it said.
The Gulf has been experiencing skyrocketing inflation in recent times as most of the currencies of the region are pegged to the plunging US greenback.
Another reason for India’s rise was that the European Union (EU) has been reluctant to sign a free trade pact (FTP) with the UAE and other Gulf Cooperation Council (GCC) members “at a time when there has been substantial progress in negotiations for such an agreement between the GCC, India and China”.
Last month, India’s Commerce Minister Kamal Nath, during a visit to Dubai, said that India expected to make substantial progress in its negotiations for an FTP with the GCC, which comprises the UAE, Saudi Arabia, Oman, Bahrain, Kuwait and Qatar.
India was also fast narrowing the gap with top-ranked China, the report stated, adding that the subcontinent would soon pose a serious threat to Beijing’s bid to maintain the top position.
The UAE’s total imports jumped by nearly 31 percent from 319.5 billion dirhams ($87.02 billion) to 418.7 billion ($114 billion) in 2007, making it the largest market in the Gulf beating Saudi Arabia.
“Given the rapid growth in the UAE economy and the resulting increase in domestic demand for goods and services, the country’s non-oil trade is projected to grow this year and further strengthen the UAE’s position as one of the world’s largest 30 countries in terms of commercial exchange,” the report said.
- UAE's non-oil foreign trade reaches $133 bn in August - Nov 15, 2010
- Foreign ministers of Turkey, six Gulf nations meet - Jan 29, 2012
- UAE posts $599 mn trade surplus with India - Sep 04, 2010
- UAE most competitive banking market in Gulf - Jan 14, 2012
- Abu Dhabi to attract $12 bn capital investments - Jan 30, 2010
- Abu Dhabi posts $37 bn in non-oil foreign trade - Mar 06, 2012
- India Dubai's biggest trade partner in Jan-Feb - May 20, 2011
- Gulf security to be focus of GCC summit - Dec 05, 2010
- Moods among top three condom brands in UAE - Jan 06, 2011
- UAE's exports to Saudi Arabia exceed $266 bn - Sep 04, 2010
- UAE seeks unified currency for GCC - Dec 06, 2010
- Kerala-born Yusuffali making waves in Gulf - Apr 23, 2012
- Symposium on non-tariff trade barriers in Abu Dhabi - Apr 19, 2011
- Amid global slowdown, India, Bahrain to scale up investment - May 30, 2012
- India needs new Look-West policy: Vice President - Nov 20, 2010
Tags: 37 years, commerce minister, dirham, european union, free trade pact, gcc members, greenback, gulf cooperation council, indian imports, inflation, kamal nath, negotiations, previous year, s commerce, seven times, several factors, substantial progress, uae, uk pound, united arab emirates