Al Moulani highlights advantage of Bahrain FTAs for Indian businesses
Bilateral trade between India and Bahrain could spike by as much as US$200 million as economies reopen following months of logistical challenges and supply chain pressures, Dr. Ali Al Moulani, President of the Bahrain Economists Society, has forecast.
He also highlighted the excellent access to GCC markets via Bahrain, pointing out that logistics and transport businesses enjoy duty free trade through Bahrain’s numerous FTAs, including the first ever US FTA with a Gulf Cooperation Council (GCC) member.
Bahrain also has the region’s best-value operating costs, up to 45% more cost effective than the rest of the region, he added.
Bilateral trade between India and Bahrain dipped during the pandemic in 2020 to US$873 million. But new data from Bahrain’s eGovernment and Information Authority shows that bilateral trade between Bahrain and India in the first half of this year topped US$492 million – a 37% increase on the same period in 2020.
“The trade balance between Bahrain and India could top US$1 billion in 2021, which would take it up to levels not seen since 2018,” Dr. Al Moulani said in a release on 29 July 2021 from Manama.
“Exports from India to Bahrain dipped during the pandemic but Indian businesses are now thinking about their recoveries. As businesses ramp up, we expect India-Bahrain trade to rebound to pre-pandemic levels relatively quickly. That could mean as much as a US$100-US$200 million surge over next year.”
“We can expect trade and diplomatic ties between the GCC and India to deepen, and the vast Indian diaspora in the region serves as a channel for increasing trade flows. Bahrain will be at the centre of that and as the GCC opens again it is likely that this will generate tens of millions more dollars.”
“India has traditionally enjoyed a very strong trade relationship with Bahrain. Indian firms have long used the island Kingdom as a gateway to western markets,” said Dr. Al Moulani.
“Sectors like healthcare are seeing increased activity from Indian firms. The GCC’s proximity to the subcontinent, its world-class logistics infrastructure, and the fact it is home to some of the largest logistics operators makes it an easy win for Indian exporters.” #exports #investment #trade #economy #logistics /fiinews.com
