India, Arab League push new-economy agenda with space and start-up focus

India and the 22-member League of Arab States are aiming to raise bilateral trade to USD 500 bn by 2030, from the current USD 240 bn, as top diplomats including foreign ministers met in New Delhi for the India-Arab Foreign Ministers’ Meeting. The summit culminated into a joint Delhi Declaration, released by India's Foreign Ministry.

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Why this matters: To hit the USD 500 bn target by 2030 — a 108% increase from current levels — the corridor requires a compound annual growth rate of roughly 15.8% over the next five years. While fossil fuels remain a bedrock of bilateral trade, the new roadmap pivots toward Green Hydrogen and strategic petroleum reserves. This secures India’s immediate energy needs while aligning with the Arab region’s post-oil diversification.

Energy dependence to interoperability: Alongside trade, the roadmap is a move to institutionalize a tech and trade corridor prioritizing certain future growth sectors: health tech, fintech, agritech, and green technologies. The summit also announced the creation of India-Arab Space cooperation group and initiatives on linking startup ecosystems.

The forum adopted an economic cooperation agenda for 2026-28 focussed on energy, environment, agriculture, food security, digital tech, startups, tourism and culture. The talks reflected shifts in the global order, particularly in the Middle East with both sides seeking to capitalize on shared economic growth and demographic strengths, India’s Foreign Minister S. Jaishankar said.

Local currency for trade: The ministerial agreement to explore a local currency settlement system (similar to the 2023 India-UAE MoU) is an attempt to insulate regional trade from USD volatility. If scaled across the 22-member League, it could significantly lower transaction costs for Indian exporters in sectors like gold, food, and pharmaceuticals.

In context: We covered the scope of roadblocks faced by India in settling trade bills with the UAE in INR and why its adoption remains difficult.