International Trade Analysis

The exchange of goods and services across national borders or territories is known as international trade. International trade is the backbone of our modern and commercial world. This trade gives rise to a world economy, in which prices, supply and demand, affect and are affected by global events. International trade allows us to expand our markets for both goods and services that otherwise may not have been available to us. Producers in various nations try to gain profit from an expanded market, rather than be limited to selling their products within their own borders. There are many reasons because of that the trade between different countries take place, including lower production costs in one region versus another specialized industries,

The GCC Countries have historical, cultural, economic and political significance for India. The GCC countries, namely Bahrain, Oman, Qatar, UAE, and Saudi Arabia, are moving in advance with their economic integration efforts and offers excellent potential for cooperation in trade, energy, investment, manpower e.t.c. With a bilateral trade estimated at USD 113 billion during 2010-2011, GCC is now our largest trading partner in the world. Nearly 40% of India crude oil import is met from the GCC countries. Gulf region plays a crucial role in our energy security and pace of economic growth .India has successfully bid for oil blocks in Qatar and Oman. The OMIFCO fertilizer plant in Oman and the Essar steel plant in Qatar are good examples of the efforts which are going to set up the joint ventures in downstream petrochemicals, fertilizer and energy intensive industries in the GCC countries and in India. With increasing economic and international profile of India, the engagement with the gulf region is on increase and also due to increase in the number of agreements and MoUs has been signed in last few years, the gulf countries provide an excellent market potential for India’s manufactured goods and services, especially in project services exports. In recent years, India has signed a number of bilateral PTAs/FTAs with countries. Towards this will, there are intentions of accelerating the process forward by entering into similar agreements with the Gulf Cooperation Council (GCC). GCC is now India’s second –largest merchandise trading partner and India is GCC’s ninth-largest. The growth in two –way merchandise trade over the past five years has been almost 20 percent per annum. Currently GCC economics are on high growth due to higher international oil-prices. They are also now more liable to integrate with the emerging Asian economics like India and china. There are two way linkages