India-Arab trade, currently exceeding $150 billion, could reach $500 billion within 10 to 20 years, according to IACCIA. The India-Arab Business Conclave 2026 aims to strengthen bilateral trade, attract Gulf investments and expand economic cooperation across multiple sectors.
India’s trade with Arab nations could expand significantly from its current value of more than $150 billion to reach $500 billion over the next 10 to 20 years, driven by growing investment opportunities, stronger commercial partnerships and increasing interest from Gulf investors, according to an official of the Indo-Arab Chamber of Commerce, Industry and Agriculture (IACCIA).
IACCIA Secretary General Waiel Awad shared the outlook on Wednesday ahead of the India-Arab Business Conclave 2026, scheduled to take place in New Delhi on December 18 and 19. The event is expected to bring together business representatives and stakeholders to strengthen economic relations between India and the Arab world.
Awad said representatives from all 22 Arab countries had been invited to participate in the conclave. The initiative aims to provide a platform for businesses, investors and policymakers to explore new commercial opportunities, establish investment partnerships and expand bilateral economic cooperation.
According to Awad, India-Arab trade has already crossed $150 billion, demonstrating the scale of existing economic engagement between the two sides. He expressed confidence that the figure could increase substantially over the coming decades as India opens more sectors to investment and businesses explore opportunities in emerging markets.
He emphasised that appropriate platforms for business engagement, combined with attractive incentives and investment opportunities offered by the Indian government, could encourage more Gulf investors to invest in India. Such participation could support economic growth, strengthen commercial networks and create opportunities across several industries.
The proposed expansion of trade comes as Arab economies seek to diversify their international partnerships and investment destinations amid growing economic uncertainties in parts of the Middle East. For India, stronger engagement with Arab countries could create opportunities to attract foreign capital, expand exports and deepen cooperation across a wide range of sectors.
The India-Arab Business Conclave 2026 is expected to play an important role in facilitating discussions between businesses and investors from both regions. By bringing representatives from all 22 Arab countries together, the event aims to identify areas of mutual interest and encourage long-term partnerships.
Awad’s projection of $500 billion in bilateral trade reflects the potential for further growth in commercial relations, although achieving that level will depend on investment flows, market conditions, policy support and the ability of businesses to convert opportunities into sustained trade.
Meanwhile, economic challenges in the Middle East have added urgency to discussions about diversification and international cooperation. The International Monetary Fund (IMF), in its October 2026 World Economic Outlook report, warned that the ongoing conflict in the Middle East and the closure of the Strait of Hormuz could push the Middle East and Central Asia region into an economic contraction in 2026.
The IMF projected regional economic growth to decline from 3.7 per cent in 2025 to minus 0.3 per cent in 2026, before recovering to 6.3 per cent in 2027. The outlook highlights the potential economic consequences of disruptions affecting energy production, transportation and regional trade.
According to the report, several Gulf economies could face particularly severe contractions in 2026. Kuwait’s economy was projected to shrink by 16.7 per cent, followed by Iraq at 16 per cent, Qatar at 15.6 per cent and Bahrain at 11.3 per cent. Disruptions to energy production and transportation were identified as major factors affecting these economies.
However, the IMF also projected a strong recovery for the affected countries in 2027. Iraq’s economy was forecast to grow by 19 per cent, Qatar’s by 18.8 per cent, Kuwait’s by 17.1 per cent and Bahrain’s by 13.9 per cent.
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Against this uncertain economic backdrop, stronger trade and investment partnerships with countries such as India could offer Arab businesses additional avenues for diversification. At the same time, Indian companies could benefit from wider access to Arab markets and increased investment opportunities.
The upcoming India-Arab Business Conclave is expected to provide an important opportunity to advance these objectives. If supported by sustained business engagement, investment-friendly policies and stronger commercial cooperation, India-Arab economic ties could expand considerably over the next two decades, bringing the $500 billion trade target closer to reality.
