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India to overtake China as UAE's top trading partner

By Issac John DUBAI - India, currently ranked as one of the UAE's 10 top fastest growing trade corridors, is expected to become its largest trading partner in 2025 by overtaking China, when the two-way trade value is predicted to reach $103.6 billion, HSBC Bank said.

At present India, along with China, the US, and Japan are the top trade partners of the UAE.

By 2013, the India-Middle East corridor is expected to grow 34 per cent, placing it among the fastest growing global trade corridors, said Nick Levitt, head of Commercial Banking, HSBC UAE. He was speaking on Wednesday at a forum on trade connections and business potential arising from bilateral relations between UAE and India.

"India is amongst the fastest growing market trade corridors. By 2050, it is forecast to become the world's third largest economy. Hearing some of the great success stories, as well the panel discussions, today's event has brought to life the impact and importance of that relationship between our two countries," said Abdulfattah Sharaf, chief executive officer, HSBC Bank Middle East Limited in the UAE. "Trade has always been at the heart of what we do. It plays a central role in our global strategy. Through our unique global expertise and local knowledge, we believe we are best positioned to help companies leverage trade growth between emerging markets led by intra-Asia and South-to-South flows. India is a key partner in the trade that we facilitate. We strongly value and support our relationship, and the UAE's relationship with such a fast growing economy," said Sharaf.Sanjay Verma, Consul General of India, said the forum on India-UAE trade brought together very significant stake holders, including a leading bank in the world, key-Indian professionals and leading entrepreneurs from the Indian community. "I look forward to this conference adding to this mutually beneficial trade partnership between India and the UAE."

Levitt pointed out that as highlighted by the HSBC Trade, India will be the Middle East's largest trading partner this year, increasing by 140 per cent over the period. The growth will be both supply chain and 
commodity driven.

Levitt said the foreign direct investment flow from the UAE to India stood at $ 17.2 billion between 2005 and 2009 and at $8.6 billion vice versa. India's exports to the UAE have grown by 43 per cent and imports from the UAE to India have grown by 68 per cent in the past two years. Six per cent of India's total exports and imports are processed through HSBC channels.

"We share a long history with India - dating back to October 1853, when the Mercantile Bank of India, China and London was founded in Bombay. India is now sixth largest contributor to Group profits after Hong Kong, China, the UK, Brazil and Canada. Today, the HSBC Group employs over 35,000 people in India, of which over 6000 contribute to our commercial bank," said Levitt.

He said to further promote trade between the UAE and India, HSBC has a dedicated team to support Indian businesses looking to plant roots in the UAE.

"As we continue to work towards our goal of being the world's leading international bank, our commitment to both the UAE and India remains stronger than ever. I hope you agree that our work so far has been reflective of this," said Levitt.

The forum featured of a series of panel discussions focused on trade opportunities and challenges that exist between the countries. Business success stories were heard from leading business figures including Yousuf Ali M.A., Managing Director of supermarket giant Emke-Lulu Group International, and Yogesh Mehta, founder and head of Petrochem Middle East FZE, one of the largest independent petrochemical distributors in the Middle East.

© Khaleej Times 2011