Economic Scenario :
The economy of Jordan is classified as an emerging market economy. Jordan is a member of the Greater Arab Free Trade Agreement, the Euro-Mediterranean free trade area, the Agadir Agreement, and also enjoys advanced status with the EU.
Jordan's economic resource base centers on phosphates, potash, and their fertilizer derivatives; tourism; overseas remittances; and foreign aid. These are its principal sources of hard currency earnings.
Jordan is classified by the World Bank as an "upper middle income country. The Jordanian market is considered one of the most developed Arab market outside the Persian Gulf states.
Bilateral Trade & Economy Ties – India & Jordan :
India’s relationship with Jordan has always been characterized by warmth and good will based on mutual respect. India-Jordan trade is governed by an agreement signed in 1976. A Trade and Economic Joint Committee constituted under the Agreement promote and monitor the progress. Over the years, bilateral trade has grown rapidly despite global economic downturn.
Jordan is one of India’s most important trading partners in the Middle East and West African (MEWA) region. The bilateral trade volume between the two countries has registered positive growth in 2018-19 over 2017-18, taking the trade from US$ 1.53 billion to US$ 1.70 billion, registering a growth of more than 11 percent. India’s total merchandise exports to Jordan also recorded a growth of 7.02 percent in 2018-19 over the last fiscal 2017-18.
India’s engineering exports touched US$ 79.9 million in 2018-19. The main items of export includes products of Iron and Steel , Motor vehicles/cars, Aluminium and products, Industrial machinery for dairy, agriculture, food processing, textiles, paper, chemicals, and electrical machinery and equipment.
Product Specific Trade, Trend & Scope :
India’s export of Electrical machinery and equipment to Jordan has increased in 2018-19viz-a-viz 2017-18 and reached US$ 4.45 million, registering a growth of more than 14 percent. India’s export of machine tools to Jordan registered a high growth in 2018-19 viz-a-viz 2017-18. India’s engineering exports to Jordan have registered a year-on year growth of 27.3 percent in 2018-19 viz-a-viz 2017-18.
Scope & Opportunity for Indian Engineering Products & Services :
Jordan has two main challenges regarding its energy situation: the growing energy demand on the one hand and the very limited domestic resources to fulfill this demand on the other hand. More than 96% of energy resources is imported. The overall consumption of electricity have been increasing in Jordan. Jordan imported more than US$ 650 million worth of electrical machinery and equipments globally in 2018. Jordan has begun to invest heavily in alternative and renewable energy, including wind and solar.
Jordan is poised to emerge as one of the region’s leaders in “Green Building” design and construction. Although Jordan’s construction sector faces challenges associated with the economic slowdown, this sector has been one of the main pillars of the economy.
Thus India has a vast opportunity as its disposal in playing an important role as a major supplier of electrical machinery, renewable machinery and construction machinery to Jordan.