Wednesday, May 23, 2012
Gulf News
Abu Dhabi: Trade between India and Arab countries exceeded $144 billion (Dh529.63 billion) in 2011, but theres scope to expand it much further, given their historical relationship which dates back several centuries, Sultan Bin Saeed Al Mansouri, UAE Minister of Economy, said yesterday.
Speaking at the third Arab-Indian Partnership conference here, Al Mansouri said considering the size of India and the developments happening in India, theres ample scope for Arab countries to expand their business relationships with the South Asian country.
We are ready to do whatever is possible on our side to boost ties with Arab countries through trade and investments, E. Ahmad, Indias Minister of State for External Affairs, said at the conference.
Priority sectors
Shaikha Lubna Al Qasimi, the UAE Minister of Foreign Trade, said: We aim to sustain the momentum through mutual cooperation in sectors such as infrastructure, manufacturing, oil and gas engineering, mining and mineral-based industries, tourism and hospitality, healthcare, financial services, agriculture and food processing, and education and the labour force.
She said although the Arab Gulf states have maintained centuries-old cultural and historic ties with India, it has only been during the past few decades that their trade with the South Asian country has gone to record levels.
This rapid evolution of our commercial partnership can be attributed to key factors such as Indias economic liberalisation after 1990 and its surge in demand for energy supplies, said Shaikha Lubna.
Capital flows
Capital flows from the GCC to India amounted to around $2.6 billion [9.54 billion] from April 2000 to January 2012, while Indias foreign direct investment contribution to the GCC for the same period was at $2.4 billion. To date, power, services and construction account for the majority of inflows from the GCC to India, which has emerged as one of our major sources of FDI, she said.
Software development and engineering services, tourism, readymade garments, chemical products, and agricultural and allied services, on the other hand, represent the greatest investment attractions for Indian corporates, Shaikha Lubna added.
The India-Middle East trade corridor is expected to grow by 34 per cent to emerge as one of the worlds fastest-growing trade corridors by 2013. India is also the first trade partner of the UAE, with bilateral trade topping $44 billion last year.
By Himendra Mohan Kumar, Staff Reporter
Gulf News 2012. All rights reserved.
