India GCC Trade: West Asia Tensions Threaten Gem and Jewellery Sector

Context:
Escalating West Asia tensions threaten India’s gem and jewellery trade through supply disruptions, demand shocks and rising logistics costs linked to GCC markets.

1. India–GCC Trade (Gem & Jewellery — Key Data)

• GCC supplies 30%+ of India’s gem and jewellery imports (raw materials and precious metals).
• Imports from GCC increased from $16 billion (FY22) to $28 billion (FY25).
• India’s exports to GCC rose from $5.1 billion (FY22) to $8.3 billion (FY25).
• GCC accounts for over 50% of India’s gold jewellery exports.
• UAE serves as a major hub for gold bars, bullion and rough diamonds, with Dubai acting as a global diamond trading centre.

2. India–GCC Overall Trade

• FY 2024–25 bilateral trade ≈ $178.56 billion

  • Exports: $56.87 billion
  • Imports: $121.68 billion

• GCC accounts for about 15.4% of India’s global trade.
• GCC is one of India’s largest regional trade partners, led by UAE and Saudi Arabia.

3. Gulf Cooperation Council (GCC)

• Established in 1981.
• Members: Saudi Arabia, UAE, Qatar, Kuwait, Oman, Bahrain.
• Focus areas include economic integration, energy cooperation, trade and security coordination.

PYQ – 2016, Ans – A
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