On Tuesday, Prime Minister Narendra Modi suggested that the bilateral trade between India and Jordan should be increased to USD 5 billion in the next five years, which will be another sign of intensifying the economic relationship.
The offer was given in the course of high-level bilateral talks commemorating the 75th anniversary of diplomatic relations between the two countries. Bilateral trade currently stands at approximately USD 2.5 billion, reflecting what the authorities cite as great untapped potential.
Key Takeaways
- India suggests that bilateral trade in Jordan can be doubled to USD 5 billion within five years.
- Specialise in trade and investment expansion.
- Specialists emphasise the need for logistics redesign and involvement of the private sector.
- The move is part of the overall West Asia engagement program of India.
There is an expansion of the Economic Partnership
The Prime Minister emphasised the necessity to leave the old trade products behind and concentrate on diversification, value-enriching, and involvement of the private sector. The products are pharmaceuticals, textiles, engineering goods, chemicals and agricultural products exported and phosphates, fertilisers and chemical inputs as the major imports in Jordan.
The two groups cited renewable energy, digital infrastructure, healthcare, agriculture, logistics, and tourism as areas that can be used to stimulate growth in the future.
What Experts Say
Policy analysts and trade economists believe that the proposal is a strategic step that fits the long-term strategy of West Asia as practised by India.
Analysts recommend that India-Jordan trade has recorded periodic improvement; however, the trade has been commodity-intensive and susceptible to world prices. They would need long-term work to expand the trade basket, they would need to promote collaboration in services and technology, to increase trade volumes more than twofold.
According to the industry experts, the pharmaceutical and IT industries in India may become significant contributors to the growth of exports to Jordan, especially amid the nation’s search for cost-effective healthcare providers and digitalisation. Stable regulatory environment and access to regional markets are perceived to be an advantage to the Indian firms.
Logistics specialists underline that it would be necessary to simplify the customs procedures and enhance transport connectivity to decrease the costs and allow the involvement of small and medium enterprises.
Other strategists also point to the fact that further economic integration with Jordan will assist India in enhancing its economic presence in the region, which will make the country a long-term partner in West Asia beyond energy and remittances.
Strategic and Diplomatic Situation
Jordan is deemed by India to be a reliable and stable ally in a sensitive geopolitical region. Enhancement of trade relationships is viewed as a complement to the greater collaboration in the field of defence, education, water management, and cultural exchange.
On its part, Jordan has shown interest in drawing on the Indian expertise in developing skills, start-ups, and digital infrastructure in the public sector, the officials said.
The Road Ahead
To make the proposal tangible, the two parties are expected to mobilise combined trade committees, business councils, as well as institutional dialogues. According to the officials, coordination of policy, provision of ease in investment, and frequent monitoring would play a significant role in realising the recommended trade target.
The initiative represents a common desire to take the India-Jordan relations beyond the conventional cooperation to a more organised and more prospective economic cooperation.
Source
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