Economic scenario of Jordan

Jordan has almost fully recovered from the shock of COVID-19,and have weathered the crisis better than many of its peers. This is in part due to timely fiscal and monetary stimuli by the government, as well as improvement in terms of trade caused by the drop in oil prices.

India-Jordan relations

India’s relationship with Jordan has always been characterized by warmth and goodwill based on mutual respect. The 10th India-Jordan Trade and Economic Joint Committee (TEJC) was held in New Delhi in July 2017.The recent visit of Hon’ble PM Shri. Narendra Modi to Amman in February 2018, during his official visit to Palestine has given a boost to bilateral relations.

India – Jordan Bilateral Trade

India’s relations with Jordan have been historical. Recent years have seen relations between India and Jordan expand rapidly.In 2021-22 India-Jordan bilateral trade was valued at all time high at US$ 2.716 billion recording a exceptional annual growth of 60.13%, with India's exports to Jordan amounting to US$ 889.2 million with an annual growth of 40.96%. India imports fertilizers, phosphates, phosphoric acid etc. from Jordan and exports cereals, frozen meat, organic and inorganic chemicals, animal fodders and variety of machinery & other engineering items.

Trade in Engineering

Among the West Asian and North African (WANA) region, Jordan ranks 8th, as India’s largest trade partner for the year 2021-22. During 2021-22 India’s engineering exports to Jordan reached US$ 107.3 million, while engineering imports from Jordan recorded at US$ 43.9 million. So India enjoys a trade surplus with Jordan in case of engineering goods. The major items of export to Jordan include motor vehicles; electrical machinery & equipment; products of iron & steel; pumps of all types; industrial machinery for dairy, agriculture, food processing, textiles, paper, chemicals etc; aluminium and products made of aluminium; two and three wheelers; medical & scientific instruments; Auto Components/Parts; IC engines & parts etc.

Opportunity for Indian Engineering Industry

Indian Electrical Equipment Industry Mission Plan (2012-22), aims to make India as a preferred destination for production of electrical equipment. It also aims to achieve an output of US$ 100 billion by balancing the trade deficit in the sector. The Government of India has lowered customs duties on a range of equipment to focus on technology and R&D and bring it on a par with the global benchmark.

The Vision 2025 of the Jordanian economy focuses to expand sectors like oil shale extraction in the energy sector, development of ICT and etc. Thus there is a huge scope for the Indian exporters to take advantage of the current demand of electrical machinery and equipment and industrial machinery in Jordan.

In case of Industrial machinery & Electrical Machinery & Equipment which is the focus product of JIMEX, India’s bilateral trade with Jordan is around US$19.1 million in 2020.