Economic scenario of Jordan:
Jordan has begun its recovery from the shock of COVID-19,and have weathered the crisis better than many of its peers, contracting by only 1.6% during 2020 and registering modest real GDP growth of 0.3% during Q1-2021. 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.
Jordan’s real GDP is projected to grow at 1.9% in 2021, as economic indicators suggest an upswing in private demand while global demand remains supportive. Early indicators point to some output recovery (such as real estate sales, construction activity and industrial production). Once global recovery consolidates, vaccination expands, and tourism recovers, growth is projected to average around 2.3%, consistent with the pre-pandemic performance.
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.
Trade in Engineering:
Among the West Asian and North African (WANA) region, Jordan ranks 8th, as India’s largest trade partner for the year 2020-21 stood with total trade of US$1.7 billion. During 2020-21India’s engineering exports reached US$60.2 million, while engineering imports from Jordan recorded at US$24.4 million. So India enjoys a trade surplus with Jordan in case of engineering goods, unlike merchandise goods.
Opportunity for Indian Engineering Industry:
Indian Electrical Equipment Industry Mission Plan (2012-22), aims to make India as a preferred destination for production of electrical equipment. It also aims to achieve an output of US$ 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.