India is
in the process of negotiating a Free Trade Agreement (FTA) with the
Gulf countries and the talks in this regard are likely to be
concluded very soon. This was indicated by Mr. Kamal Nath, Minister
of Commerce and Industry, in his keynote address at the Inaugural
Session of the 3rd meeting of the India-GCC Industrial
Forum, in Mumbai today. Stating that India is privileged to host
this year’s Forum, the Minister expressed the hope that the
deliberations would further enhance the expanding economic relations
between India and the Gulf Cooperation Council (GCC) countries. “In
the last five years, India’s total trade with the GCC countries has
risen more than four-fold – from US$ 5.55 billion in 2000-01 to US$
23.42 billion in 2005-06. The period witnessed buoyancy in both
exports and imports. Signing of the Framework Agreement on Economic
Cooperation between India and GCC countries in 2004, was another
milestone in the Indo-GCC economic relations”, he added.
Dr Al
Yamani, Minister of Commerce and Industry, Saudi Arabia and Mr.
Maqbool bin Ali bin Sultan, Minister of Commerce and Industry, Oman,
were present on the occasion along with members of the GCC
delegations, including the GCC Chambers and leading representatives
of Indian Industry headed by the Confederation of Indian Industry
(CII) and the Federation of Indian Chambers of Commerce and Industry
(FICCI).
Underlining the importance of the Gulf countries to India, Mr. Kamal
Nath observed that the Gulf region was on par in terms of demand
creation when compare to even the US. “It is already a target
market for more than three-quarters of India’s main export products
including fresh fruits and vegetables”, he said.
The
Minister outlined a whole of range of opportunities in India for
investors from the Gulf, specially the huge opportunities in
infrastructure. “There are obvious synergies between India and the
Gulf. The GCC countries continue to be a major supplier of oil to
India, meeting almost two-thirds of our oil requirements. India is
looking at providing refining services to the Gulf. I invite oil
companies from the Gulf to set up their facilities in India as it
will not only add a new dimension to our India-GCC trade but also
help in enhancing capacities. At the same time, we should also look
at partnering in areas that go beyond just oil. Infrastructure is
one area where India offers immense opportunities for investment.
We have estimated the requirement of infrastructure sector to be
about US$ 320 billion in the next five years. India plans to add
100,000 MWs of power in the next ten years. There is potential for
investment in LNG terminals as India is a gas deficient country.
Air passenger traffic has grown in excess of 30 per cent in the last
three years. I expect investors from this region to actively
participate in the ongoing airport modernization programs across the
country”, he said
Exciting
opportunities also exist in India on farm and food processing
sector, as value addition in this area is only 16%, despite the fact
that India is among the world’s largest producer of milk, vegetables
and fruits, he said adding that India’s investment requirement in
this would be around 15 billion. Gems and jewellery, healthcare and
biotechnology were the other areas flagged by Mr. Kamal Nath for
Gulf investors. “I invite investors from the GCC countries to make
the most of the opportunities that India provides by entering into
joint ventures, collaborations and partnerships in different
sectors. There is political will on both sides to take the
India-GCC trade to the next higher level of engagement and now the
onus is on the trade and investment community to translate this will
into a reality that augurs well for both sides”, he stressed.
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