ABSTRACT

India and the six-member Gulf Cooperation Council (GCC) signed the framework agreement on economic cooperation on 25 August 2004 to boost commercial and economic ties. India is exporting less to GCC countries though it enjoys more than one revealed comparative advantage in a long list of products, which is much higher than some of the India's existing free trade agreements with countries such as Japan and South Korea. Indian agricultural products, especially fresh fruits and vegetables, can make their way into the GCC market. The trade intensity index is defined as a ratio of the share of one country's trade with another country to the other country's share of the world trade. The Import Intensity Index of India with Bahrain is more than its Export Intensity Index. The Export Intensity Index of Kuwait with India is more than its Import Intensity Index with India.