DUBAI— Declaring that there is a clear convergence of interests between India and the Gulf countries in the present global economic environment, Indian Minister for Commerce and Industry Kamal Nath yesterday said a GCC-India partnership would be capable of redefining the contours not just of global trade, but of global dynamics.
Speaking at the Khaleej Times International Forum, Kamal Nath said with the centre of gravity of the globe shifting from the Atlantic Ocean to the Indian Ocean, India is well-placed to provide refining services to the Gulf countries, while facilities located in India would enhance Gulf capacities. "There is a shift in trade winds. Given that India’s bilateral trade with the Gulf countries — our natural partners — is growing at about 30 per cent, we want to engage with GCC in more ways than trade — by enhancing investment and co-operation," the minister said in his presentation "India on the fast Track."
Dignitaries present at the event included Indian Ambassador to the UAE Chandra Mohan Bhandari, Indian Consul General in Dubai Yash Sinha and prominent NRIs. Kamal Raj Shah, Chief Operating Officer of Khaleej Times delivered the vote of thanks on behalf of Mohammed A. R. Galadari, Chairman of Galadari Group.
He said the GCC-Indian free trade talks which has been under way for the past two years, would be sealed in March 2007. "In August 2004 I had the privilege of signing the Framework Agreement with the GCC. I am extremely happy that we have made significant progress in our talks, and last week in Riyadh we committed ourselves to finalising the India-GCC FTA by December. Not only that, we decided to expand the scope into an ‘FTA Plus’, by including services and investment. We want to enhance investment in infrastructure such as highways, ports, airports and power."
He said India’s non-oil trade with the Gulf will exceed $20 billion, totalling its trade with Europe, and in a couple of years, its is set to exceed trade with the USA, which is currently the country’s largest trading partner. At present, 70 per cent of India’s trade with the Gulf is with the UAE.
Kamal Nath said India, the fastest growing free market economy in the world believe that it is the country’s human resources that have put the nation on the fast track. "Our economic power cannot just be measured in GDP growth or booming foreign trade, but through our people’s entrepreneurship and intellect. Our people are the indeed the brand India can project." He pointed out that India has a young demographic profile, with 54 per cent if its population below the age of 25. "As population in the developed countries and even China greys, a new economic architecture is emerging. In 10 years India will have the largest workforce on earth — not the largest population, but the largest workforce. We will have a huge population of savers and spenders while the countries of the West will have a population of pensioners. Already, with increasing incomes, 25 million people are entering the middle-class every year in India. We are large producers, and large consumers with our imports growing faster than our exports at 40 per cent," the minister said.
"This then is the India we speak of. An India which has the world’s largest number of poor people, but is also home to 27 per cent of the world’s 793 billionaires. An India full of paradoxes - but nevertheless, an India on the move, an India that has once again captured the imagination of the planet. We have accomplished several things. Several things remain to be accomplished. What is important is that we are on the right track - the fast track - and the future that lies before us, belongs to us," he said.
Kamal Nath said the world perceives India as more than just a base for low-cost operations. "Today, India, with its talent pool, young demographic profile and sound economic environment can offer immense opportunities not only for business process outsourcing, but increasingly for the higher end of value chain in knowledge process outsourcing and engineering process outsourcing. The minister said it was impossible to think 15 years ago that India could break out of its cycle of living on the edge of poverty and experience a sustained growth of 8 per cent. "Who would have thought, when we were pawning our gold to pay off our debts, that we would have foreign exchange reserves of $150 billion? Who would have thought when we were struggling with ideas like import substitution, that our merchandise exports would touch $100 billion? Who would have thought that FlIs would invest more than $10 billion in a single year, over and above the more than $5 billion that came in as FDI?," he asked.
Source: http://www.khaleejtimes.com/
