Indo-GCC trade to rise to higher level of engagements: Nath

By Staff
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Mumbai, May 29 (UNI) Union Commerce and Industries Minister Kamal Nath today urged to carry forward the Free Trade Agreement (FTA) with the Gulf countries and enhance the expanding economic relations between India and Gulf Cooperation Council (GCC) countries.

Delivering his keynote address at the 3rd India-GCC Industrial Forum here, Mr Nath said ''The Gulf region is on par in terms of demand creation when compared to the US, having prosperous and growing market with large import requirements. It is already target market for more than three-quarters of India's main export products.'' He said in the last five years India's total trade with the GCC countries has risen more than four-fold from US 5.55 billion dollars in 2000-01 to USD 23.43 billion in 2005-06. The period witnessed buoyancy in both exports and imports. Signing of the framework agreement on Economic Co-operation between the GCC Countries in 2004 was another milestone in the Indo-GCC economic relations.

Talking about the synergies between India and the Gulf, the Minister said the GCC countries continue to be a major supplier of oil to India, meeting almost two-third of its oil requirement.

Mr Nath invited oil companies from Gulf to set up their facilities in India to add a new dimension to India-GCC trade and enhance the capacities.

Apart from oil, he said, the infrastructure sector also provides immense opportunities for investment.

''We have estimated the requirement of the infrastructure to be about USD 320 billion in the next five years. India plans to add 100,000 mega watts of power in the next 10 years. There is potential of investment in LNG terminals as India is gas deficient country,'' the Minister said.

Pointing out that in India's air passenger traffic has grown in excess of 30 per cent in the last three years, he said ''I expect investors from GCC countries to actively participate in the ongoing airport modernisation programmes across the country.'' Gems&Jewellery and healthcare and biotechnology were the other areas flagged by the Minister for Gulf Investors.

''I invite investors from GCC countries to make most of the opportunities that India provides by entering into the joint ventures, collaborations and partnership in different sectors. There is a political will on both sides to take the Indo-GCC trade to the next higher level of engagements,'' he asserted.

He also emphasised that one of the major areas needed to enhance is agriculture sector, which can be included in the Indo-GCC bilateral trade.

India's investment requirement is around 15 billion dollars in food and agriculture sector like milk, vegetables and fruits.

Existing possibilities also exist in India's farm and food processing sector, which have been identified as a priority area by the government, Mr Nath said.

UNI

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