The Hindu : Business : India-GCC FTA soon

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Wednesday, May 30, 2007
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India-GCC FTA soon

Special Correspondent

Gulf region is on a par with the U.S., says Kamal Nath

MUMBAI: Union Minister of Commerce and Industry Kamal Nath on Tuesday said India was in the process of negotiating a Free Trade Agreement with the Gulf countries and talks in this regard were likely to be concluded soon.

"In the last five years, India's total trade with the Gulf Cooperation Council (GCC) countries has risen more than four-fold from $5.55 billion in 2000-01 to $23.42 billion in 2005-06. The period witnessed buoyancy in exports and imports. Signing of the Framework Agreement on Economic Cooperation between India and GCC countries in 2004 was another milestone in the Indo-GCC economic relations,'' Mr. Kamal Nath said in his keynote address at the inaugural session of the third meeting of the India-GCC Industrial Forum here.

Underlining the importance of the Gulf countries to India, Mr. Kamal Nath observed that the Gulf region was on a par with the U.S. in terms of demand creation. "It is already a target market for more than three-quarters of India's main export products, including fresh fruits and vegetables," he added.

India is now planning to expand exports of its agricultural products by several fold to GCC countries. "In this regard, Agriculture Production

Export Council members would visit Gulf countries to study how we can have a quantum jump in exports of agricultural products to these countries," Mr. Kamal Nath said later at a press conference.

Fund for SMEs

Hashim Bin Abdullah Bin Al Yamani, Minister of Commerce and Industry, Saudi Arabia, and Maqbool Ali Sultan, Minister of Commerce and Industrty, Oman, were present on the Occasion. Mr. Ali Sultan said the GCC and India decided to set up a $50 million holding company to help small and medium enterprises (SMEs) to develop joint ventures and trade between India and Gulf countries.

Technology and research and development (R&D) are the other areas Gulf countries would explore in India, in future. According to Mr. Ali Sultan, India is strong in technology and R&D and the GCC and India would work together in these areas and both would benefit.

"Public Private Partnerships would emerge in these areas," Mr. Ali Sultan added.

Mr. Kamal Nath said, "I invite investors from the GCC countries to make the most of the opportunities that India provides by entering into joint ventures, collaborations and partnerships in different sectors. There is political will on both sides to take the India-GCC trade to the next higher level of engagement.''

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