India, GCC to set up USD 70mn fund for SME devp

Mumbai, May 30: India and Gulf countries have jointly agreed to launch a 70-million-dollar fund for seting up a holding company to promote Small and Medium enterprises (SME) in both the regions.

Addressing a joint press conference on the concluding day of the two-day 3rd Indo-GCC forum conference here , Industrial Policy and Promotion Secretary Ajay Dua said the holding company will have private and public sector participation in India and GCC states to promote joint venture products of SMEs.

The initial amount invested for the holding company will be used as ''seed capital'', he added.

The representatives of India and GCC countries have identified four specific areas in which both sides will explore and enhance economic cooperation -- real estate development; oil, gas and power; petrochemicals; and infrastructure sector particularly ports, railways, road transport and highways.

Earlier, in his valedictory address, Commerce and Industry Minister Kamal Nath 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 a growing recognition of the fact that while India needs to secure in its energy needs through increased Gulf Cooperation, both sides can not afford to overlook the opportunities emerging in other sectors''.

Agriculture and food processing has been identified as a new sector by members of the Indo-GCC forum and has significant opportunities for trade and investment.

''GCC states would receive and facilitate the visits of Indian agro processing companies, particularly of the Agriculture and Processed Food Products Export Develoment Authority (APEDA), and India will reciprocate,'' said Dr Dua.

As per the Mumbai declaration, the two sides agreed to further intensify the contacts between the businesses of the two sides to identify mutually beneficial projects for promotion of economic cooperation and expediting the conclusion of the India GCC Free Trade Agreement (FTA).

It was also decided that the ministerial-level meeting and the forum would be held every two years alternatively in India and GCC states. However, a meeting of the senior officials and business representatives would be held every year in the same pattern.

The findings and recommendations of senior officials and business representatives in these meetings would be reported to the biennial ministerial level forum meeting. The dates and venues of the senior officials' meeting of 2008 would be decided by the GCC Secretariat in the near future.

The 4th Indo-GCC forum would be held in the first quarter 2009, and the venue will be decided by the GCC secretariat.

UNI