Bharat Mart as an Economic Advantage for India in the International Trade
Prime Minister Narendra Modi on February 14, 2024 inaugurated “Bharat Mart” in Dubai, which is a facility for Indian MSMEs (Ministry of Micro, Small and Medium Enterprises); Mohammed bin Rashid Al Maktoum, vice president, prime minister, and the ruler was also present at the event.
Expected to operate by 2025, Bharat Mart will be a warehousing facility enabling Indian companies to trade in Dubai. Similar to China’s Dragon Mart, the facility will offer a unified platform for Indians exporters to showcase a variety of products under one roof. The aim is to establish a base and engage in trade from the UAE. The genesis of this project is the presence of similar facilities in China that have been beneficial for their exporters. According to a report in the Economic Times, Bharat Mart is likely to cover an area of over 100,000 square meters and will serve as a multi-purpose facility, offering a combination of warehouse, retail and hospitality units. The aim is to establish a base and engage in trade from the UAE.
Indian companies that have plans to expand their operations in Europe, Africa and the US are expected to benefit from this facility. India and the UAE have signed 10 agreements to collaborate in areas such as energy, infrastructure, investment and archive management. The UAE is one of India’s closest strategic and energy partners in West Asia, and trade was boosted by the signing of a Free Trade Agreement (FTA) in 2022. A new Memorandum of Understanding (MoU) on cooperation in electrical interconnection and trade will open up new ideas of collaboration in energy, including energy security.
The two sides signed separate agreements for linking their instant payment platforms. The Bharat Mart initiative assumes importance as India and the UAE are striving to double their non-petroleum trade target to 100 billion by 2030 as part of the Comprehensive Economic Partnership Agreement (CEPA). PM Modi said that Bharat Mart has the potential to play an important role in promoting exports of the micro, small, medium sectors of India by providing them an effective platform to reach out to international buyers in the Gulf, West,Africa and Eurasia.
How will it help?
With the aid of Bharat Mart, Indian businesses will be able to grow into continents such as Europe, Africa, and even the US. Experts told the Economic Times that the facility will assist in lowering the time and expense of shipping goods between India and other nations. It underscores the enduring economic and historical connections between the two nations spanning from trading spices and engaging in gold smuggling during UAE’s early years to the current scenario of tens of billions of dollars in annual bilateral trade. As part of the agreement, India was granted permission to conduct certain transactions in rupees instead of dollars, thereby reducing transaction expenses.
The aim is to establish a base and engage in trade from the UAE. The genesis of this project is the presence of similar facilities in China that have been beneficial for their exporters. Bharat Mart will house a variety of products from heavy machinery to perishable goods, in its retail showrooms, warehouses,offices and other ancillary facilities. Additionally,there are plans to create a digital marketing platform where customers from all over the world can purchase goods from the facility.
Bharat Mart will serve as a warehousing facility for Indians to trade in Dubai and work as a unified platform for Indian exporters to showcase their products in the economy. A platform like Bharat Mart could benefit people living in Dubai by providing access to a wide range of Indian products including traditional foods, and more. This could offer a taste of home for Indian expatriates in Dubai and also introduce Emirati residents to authentic Indian products they might not find easily elsewhere. Additionally, it could facilitate easier purchasing and delivery of these items, enhancing convenience for consumers.
Bharat Mart’s establishment in Dubai could potentially impact both productivity and GDP in several ways such as increased Demand, where if Bharat Mart successfully caters to the demand for Indian products in Dubai, it could lead to increased production in India to meet this demand. This could result in higher output and contribute to GDP growth in India. Exporting Growth as Bharat Mart facilitates the export of Indian goods to Dubai, it could lead to an increase in export revenues for Indian businesses contributing positively to the country’s GDP.
If Bharat Mart invests in infrastructure, distribution centers and retail outlets in Dubai,it could stimulate economic activity in the regions, potentially leading to higher GDP through increased investment.The establishment of Bharat Mart could have a multiplier effect on the economy generating additional economic activity in related sectors such as transportation, packaging and marketing further contributing to GDP growth.
Overall, Bharat Mart present in Dubai has the potential to positively impact both production and GDP by stimulating demand for Indian products and promoting economic activity in both countries. The impact on the economy could be multifaceted which could foster increased trade between India and Dubai, boosting bilateral economic ties and potentially leading to more business opportunities for Indian exporters and Dubai-based businesses.
The availability of a wider range of products through Bharat Mart could stimulate consumer spending in Dubai,as people might tomorrow be inclined to purchase items they previously had limited access to. If Bharat Mart establishes physical stores or contribution centers in Dubai,it could create job opportunities both in retail and logistics sectors. By promoting Indian culture and product’s in Dubai, Bharat Mart could contribute to cultural exchange and understanding between the two countries potentially fostering tourism and other forms of cross- border engagement.
Overall, the impact would likely be positive, enhancing trade, consumer choice, and cultural connections between India and Dubai.
Degree of Thought is a weekly community column initiated by Tetso College in partnership with The Morung Express. Degree of Thought will delve into the social, cultural, political and educational issues around us. The views expressed here do not reflect the opinion of the institution. Tetso College is a NAAC Accredited UGC recognised Commerce and Arts College. The editorial team includes Chubamenla, Asst. Professor, Dept. of English and Rinsit Sareo, Asst. Manager, IT, Media & Communications.
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