GCC countries are looking at profitable investments in Asia, including India
The new arrangement would go beyond signing a Free Trade Area (FTA) agreement India was also looking at refining oil produced in the Gulf in its facilities GCC countries were looking at Indian investments in Information Technology, biotechnology, small-scale industry and pharmaceuticals
MUSCAT: India has decided to sign a comprehensive economic pact with the six-nation Gulf Cooperation Council (GCC) next year that covers trade, investment and services as part of its effort to forge closer ties with Asia.
Both sides are holding talks that would lead to a Comprehensive Economic Cooperation Agreement (CECA) by early 2007, the Commerce and Industry Minister, Kamal Nath said.
Addressing the second India-GCC industrial conference, he pointed out that the new arrangement would go beyond signing a Free Trade Area (FTA) agreement, as it would cover services and investments as well. The oil - rich GCC has Saudi Arabia, Bahrain, Qatar, Oman, Kuwait and the United Arab Emirates (UAE) as it members.
Flushed with funds following the surge in oil prices, GCC countries are looking at profitable investments in Asia, including India. India, on its part required foreign investments in power, telecommunications, roads, ports and housing that exceeds $150 billion, Mr. Kamal Nath said.
India was also looking at refining oil produced in the Gulf in its facilities. The Minister said that India was already benefiting from the "oil revenue windfall" that the GCC countries were experiencing.
According to some analysts, well-known foreign funds were considering floating India-specific funds in the Gulf.
Trade volume
The pattern and volume of India-GCC trade was changing rapidly, with non-oil trade this year expected to touch $20 billion. "I will not be surprised that in a couple of years the volume of bilateral trade exceeds India’s trade with the United States, which is currently our largest trading partner", Mr. Kamal Nath said.
On its eastern rim, India’s trade with Association of South East Asian Nations (ASEAN) for 2007 was targeted at 30 billion dollars.
Seeking to diversify their economies beyond oil, the GCC countries were looking at Indian investments in Information Technology, biotechnology, small-scale industry and pharmaceuticals. Saudi Arabia’s Commerce and Industry Minister, Hashim bin Abdullah Al Yamani pointed out that the Kingdom was seeking foreign investments in petrochemicals, power, water and transportation. Saudi Arabia’s "look east" policy has acquired a high profile after the recent visit of King Abdullah Abdulaziz to India and China.
He said that a strategic relationship with India could be sustained through private entrepreneurship and investments in areas that went beyond oil.
Job opportunities
As both sides adjusted to change, some business delegates at the conference said that manpower requirements in the Gulf countries were changing fast.
With burgeoning domestic populations that were entering the job market, governments in the region were reducing employment opportunities for expatriates. Nearly 3.5 million Indian expatriates currently reside in the GCC countries.
RSS 2.0