India’s relations
with the Gulf countries received a big boost with the 3rd
India-GCC Business Conference (Industrial Forum) adopting the Mumbai
Declaration to enhance economic engagement between the two sides in
number of new areas and with both sides agreeing to expedite
conclusion of the proposed Free Trade Agreement (FTA) between India
and the Gulf Cooperation Council (GCC) countries.
A major outcome has
been the decision to facilitate and expedite projects in the field
of agriculture and food processing which has been identified as a
new sector with significant opportunities for trade and investment.
GCC States would receive and facilitate the visits of Indian agro
processing companies particularly of the Agricultural and Processed
Food Products Export Development Authority (APEDA) of India and
India will reciprocate.
It has also been
decided that in order to promote joint venture projects of Small and
Medium Enterprises (SMEs) in both India and GCC countries, a holding
company would be set up with private and public sector participation
in India and GCC States.
Further, the four
specific areas in which both sides will explore and enhance economic
cooperation are: (1) Real Estate Development; (2) Energy (Oil, Gas
and Power); (3) Petrochemicals; and (4) Infrastructure Sectors
particularly ports, airports, railways, road transport and
highways. Both sides will actively upgrade the investment climate
and trade of goods and services in accordance with the relevant
legislations of the countries concerned.
Earlier, in his
valedictory address, Mr. Kamal Nath, Commerce and Industry Minister,
pointed out that while “both sides have recognised that oil has and
will continue to be the mainstay of India-GCC economic cooperation,
there has been an increased recognition of the fact that while India
needs to secure its energy needs through increased Gulf cooperation,
both sides cannot afford to overlook the opportunities emerging in
other sectors. India’s global comparative advantages place her on a
higher keel as an attractive investment destination and hence a
natural partner for GCC countries. FDI equity flows in India have
grown three-fold from US$ 5.5 billion in 2005-06 to US$ 16 billion
in 2006-07. Buoyed by this growth, this year we have set ourselves
a target of US$ 30 billion in FDI”. Countries from the GCC could
look at India to invest their surplus petrodollars (thanks to the
spiraling oil prices) in India and explore avenues for investments
in this low-cost, labour-rich manufacturing and industrial
processing base, he added.
The 3rd India-GCC
Business Conference (Industrial Forum) hosted by the Government of
India was held in Mumbai, India on 29-30 May 2007 with the theme of
“India-GCC Investment Opportunities” and concluded here this morning
with the adoption of Mumbai Declaration. The Conference chaired by
Mr. Kamal Nath was attended by the GCC Ministers – Dr Hashim
Abdullah Yamani, Minister of Commerce and Industry, Saudi Arabia and
Mr. Maqbool bin Ali bin Sultan, Minister of Commerce and Industry,
Oman and official representatives of other GCC States, besides
senior Government officials headed by Dr Ajay Dua, Secretary
(Industrial Policy and Promotion), Ministry of Commerce & Industry
and representatives of trade and industry including CII, FICCI, the
Gulf organization for Industrial Consulting and the Federation of
GCC Chambers.
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