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KAMAL NATH INVITES ARABS TO INVEST IN INFRASTRUCTURE – SAYS STRONG
INDO-ARAB PARTNERSHIP CENTRAL TO INDIA’S LONG TERM ENERGY SECURITY
Date : 07 Dec 2006
Location : New Delhi
Underlining the great opportunities for Indian
and Arab businesses to forge two-way ties, Shri Kamal Nath, Union Minister of
Commerce & Industry, has called upon Arab companies to look at investment
opportunities in India, especially in the infrastructure sector. “Our
requirement of foreign investment in power, telecom, roads, ports, housing and
other areas are now in excess of $150 billion. I am sure this would attract the
attention of infrastructure and financing companies in the Arab world. In the
wake of the current oil boom, the Arab world, particularly the oil-producing
countries have run up substantial surplus investible resources. In the past,
you were inclined to direct your investments to the western world. But, I
believe in the changed scenario, India offers a much more stable, friendly and
rewarding investment environment”, he said while addressing the first India-Arab
World CEO Summit in Dubai today.
“If we were to focus on specific areas, India
is well placed to provide refining services to the Gulf countries; facilities
located in India would be able to enhance your capacities. A strong Indo-Arab
partnership is also central to India’s long-term energy security. To promote
Indo-Arab investment ties, we are willing to sign bilateral investment
protection agreements, such as, the ones signed with Oman (1997), Qatar (1999),
Kuwait (November 2001), Yemen (October 2002), Bahrain (January 2004) and Saudi
Arabia (January 24, 2006)”, he said.
Flagging the potential areas of Indo-Arab
cooperation, Shri Kamal Nath mentioned information technology and IT-enabled
services, transportation, construction & development projects (where 100% FDI is
allowed) besides opportunities for Indian and Arab companies to engage in high
level research in the areas of IT, biotech, nano-technology etc. “Our IT and
telecom firm have aided governments to set up e-governance systems. Perhaps,
these could be efficiently replicated in the Arab countries too”, Shri Kamal
Nath added.
He also drew the attention of Arab enterprises
to India’s emergence as a global hub of manufacturing activities covering
steel, petrochemicals, auto and auto components, paints, textiles, industrial
fabrics, leather and leather goods, pharmaceuticals, etc. and the comparative
advantages that India holds in these sectors by virtue of its high quality and
low cost production systems.
Referring to Indo-Arab trade, he said these
were poised to diversify to grow in the coming years. “India’s exports to
the Arab world, which stood at $14 billion in 2004-05, went up by 17.23% to $17
billion in 2005-06. Oil is indeed the key import item. Excluding oil, India’s
imports from the Arab world, which stood at $9 billion in 2005-05, went up by
13.9% to $11 billion in 2005-06”, he said.
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