See discussions, stats, and author profiles for this publication at: https://www.researchgate.

net/publication/343254306

Indo-Arab Trade Relations

Conference Paper · July 2020

CITATIONS READS

0 702

1 author:

Professor Muhammad Azhar

Aligarh Muslim University
109 PUBLICATIONS   69 CITATIONS   

SEE PROFILE

Some of the authors of this publication are also working on these related projects:

Economic Relations Between India and Gulf Cooperation Council Countries: Issues in Financial Cooperation View project

India and Gulf Cooperation Council (G.C.C.) States: Performance and Prospects of Economic Cooperation. View project

All content following this page was uploaded by Professor Muhammad Azhar on 28 July 2020.

The user has requested enhancement of the downloaded file.

Indo-Arab Trade
Relations
Muhammad Azhar
Associate Professor
Department of West Asian Studies
AMU, Aligarh, India
Paper for the International Seminar on
People , Culture and Goods in Motion: India- Arab Maritime Historical Relations.
March 03-04, 2010
Gulf Studies Programme, Centre of West Asian Studies, School of International Studies, Jawahar Lal Nehru University, New Delhi
• Even before the advent of Islam , Arab merchants
and traders were already established along the
Malabar coast.
• During the Muslim period , the principal trade
routes emerged from the courses of the two river
valleys of Mesopotamia and their continuation in
the gulf (still important for the transportation of
oil )
• The Arab commerce was centred in Baghdad and
Basra .
• It was from this source that the main current of the Arab
trade started for India and then moved to China.

• Arabs brought pearls and precious stones ,dates and

horses to India.

• Whereas from India ,cotton , woven and embroidered

stuffs ,rare and sweet smelling woods ,ivory and metals of
almost every kind ,camphor , coconuts ,musk e.t.c were
transported to the various Arab and Islamic cities.

• This has continued and expanded in a big way

• The number of commodities and the size of
trade has become enormous .
• Let us have a look at that.
TABLE -1 :INDIA’S TRADE WITH VARIOUS
REGIONS-2008-2009($ million)
REGION INDIA’S EXPORTS INDIA’S IMPORT TOTAL TRADE

1.W A N A 41,694.3 90.208.3 131,902.6

(22.5%) (29.7%) (27%)
1.A-WANA(ARAB 36,285.0 74,226.8 110,511.8
COUNTRIES ONLY) (19.6%) (24.4%) (22.6%)
2.NEASIA(INCLUD 25,449.2 58,455.9 83,905.1
ES CHINA) (13.7%) (19.2%) (17.2%)
3.E.U COUNTRIES 39,351.4 42,733.4 82,084.8
(27 COUNTRIES) (21.2%) (14.1%) (16.8%)
4.NORTH 22,513.9 21,020.1 43,534.0
AMERICA (12.2%) (7.0%) (9.0%)

WORLD 185,295.4 303,696.0 488,991.4

Source: Export –Import data , Ministry of Commerce , Government of India

New Delhi
TABLE-2: INDIA’S LARGEST TRADING
PARTNERS (COUNTRY WISE-2008-2009,
$ million)
C0UNTRY INDIA’S INDIA’S TOTAL BALANCE OF
EXPORT T0 IMPORT TRADE TRADE
FROM
1.UAE 24,477.5 23,791.3 48,268.8 +686.2
(13.2%) (7.8%) (9.9%)
2.CHINA 9,353.5 32,497.0 41,850.5 -23,143.5
(5.0%) (10.7%) (8.6%)
3.USA 21,149.5 18,561.4 39,710.9 +2,588.1
(11.4%) (6.1%) (8.1%)

# source: Export –Import data , Ministry of Commerce , Government of

India , New Delhi
COMMODITIES IN INDIA’S EXPORT
BASKET TO ARAB COUNTRIES
1. Rice Basmati
2. Rice ( other than Basmati)
3. Pulses
4. Dairy products
5. Fresh vegetables
6. Rubber Manufactured Products
7. Meat and Preparations
8. Manufacture Of Metals
9. Machinery and Instruments
10. Plastic and linoleum products
11. Man made yarn fabrics
12. Ready made garments including accessories
COMMODITIES IN INDIA’S
IMPORTS BASKET FROM ARAB
COUNTRIES
1. Crude oil
2. Petroleum gases
3. Fertilisers manufactured
4. Fertilisers crude (phosphate )
5. Pearl ,precious and semi precious stones
TABLE 3:INDIA’S IMPORT OF PETROLEUM
CRUDE (2008-09) $ MILLION
1. SAUDI ARABIA 15,827.3
2. IRAN 11,035.0
3. UAE 9,208.6
4. NIGERIA 8,575.7
5. KUWAIT 7,915.0
6. IRAQ 7,655.8
7. QATAR 1,413.0
8. EYGYPT 1,081.1
9. LIBYA 684.1
10. YEMEN 585.0
11. SUDAN 361.0
12. ALGERIA 197.1
13. SYRIA 119.7
14. TOTAL INDIA : 77,310.8 (25.5% OF India’s total imports in 2008-2009)
15. T0TAL(ARAB SOURCES): 45,047.8 ( 60% Of total petroleum crude imports)

# source: Export –Import data , Ministry of Commerce ,

Government of India , New Delhi
TABLE-4:INDIA’S IMPORT OF PETROLEUM GASES (2008-09)
$ MILLION
country $ MILLION PERCENTAGE%
1.QATAR 1,408.4 30.1%
2.SAUDI ARABIA 1,192.6 25.4%
3.UAE 282.9
4.KUWAIT 202.8
5.ALGERIA 198.0
6.EGYPT 116.0
7.BAHRAIN 100.3
8.India’s imports of PET. 3,501.0 75%
Gas from Arab Countries
9.India’s total import of 4,686.8
PET. Gas

# source: Export –Import data , Ministry of Commerce , Government of India

, New Delhi
CONCLUSION
• Region wise, Arab countries have been India’s largest trading
partner.
• Country wise United Arab Emirates, an Arab country has been India’s
largest trading partner.
• Also India-UAE trade has been most balanced.
• India’s exports to the Arab countries is diversified.
• India’s imports from the Arab countries, in addition to the petroleum
oil and gases also includes non petroleum commodities.
• Arab countries are main source of imports of petroleum crude oil to
India.
• Saudi Arabia is the largest supplier of crude petroleum to India.
• Arab countries have also been main source India’s imports Of
petroleum gases.
• Qatar has been the largest supplier of petroleum gas to India.
• Cooperation between India and the Arab countries has been
growing in the energy sector.
• Scope of substantial cooperation between India and the Arab
countries in the financial sector.
• Millions of Indian expatriate workers in Arab countries sending
billions of dollars of remittances to India.
• Negotiations in advanced stage for India- G.C.C free trade
agreement.
• China has been India’s main competitor in the Arab markets.
References:
1. Azhar, Muhammad(1996), ‘India and Oil Exporting Countries: Scope
of Energy Cooperation’, OPEC Bulletin, Vol.28, No.3, March.
2. Azhar , Muhammad(2000), ‘Indo-Jordanian Trade: Performance and
Prospects,’ Middle Eastern Studies, Vol.36, No.3,July.
3. Azhar , Muhammad(2002), Aspects of Economic Cooperation between
India and the Gulf Cooperation Council States, Academy of Third World
Studies, Jamia Millia Islamia , New Delhi.
4. Azhar, Muhammad(2003) ,’ Economic Cooperation between India and
United Arab Emirates, Middle Eastern Studies, Vol.39, No. 3, July.
5.Azhar, Muhammad(2006), ‘Trade between India and West Asia in the
Nineteen Nintees: Performance and Prospects’, Centre of West Asian
Studies, Aligarh Muslim University ,Aligarh.
6. Azhar, Muhammad(2008), ’Economic Cooperation between India and
Saudi Arabia: Performance and Prospects’, Middle Eastern Studies,
Vol.44, No.2,, March.
7. Azhar, Muhammad (2008), ‘ Aspects of Economic Relations
between India and the Arab Countries of the Mediterranean,’
Journal of West Asian Studies, Vol.22.
8. Azhar, Muhammad(2009), Indo-Iraq Economic Relations in
Post Saddam Period’, Journal of West Asian Studies, Vol.23.

View publication stats