Minister of State for External Affairs Dr Shashi Tharoor at the Release of “Arab World 2009: Paradise Promised- A Manual on Business and Trade Opportunities”
17 August 2009, New Delhi
I am honoured and delighted to be here for the release of this wonderful publication of ASSOCHAM on business and trade opportunities in the Arab world. I would like to compliment ASSOCHAM for this initiative and their efforts to foster business and trade links with the Arab world. I would also like to compliment the Arab Missions and the Arab League Mission for their cooperative efforts to bring out this publication. I am sure that this Manual will go a long way towards further enhancing our excellent relations with the Arab world.
2. India-Arab relations is a subject close to my heart. Personally, not only have I travelled to several Arab countries in the course of my international career, but after I left my job at the UN, I was temporarily doing business out of Dubai. This put me in direct contact with Arab people and I have come away very impressed not only with their intrinsic abilities and entrepreneurial skills but also with their deep sense of appreciation of the historic, cultural and civilizational ties that bind India and the Arab countries. As this is a business event, I would refrain from going into the history of our relations, although I must admit that I am tempted to do so. However, here it should be enough to say that the bedrock of our relations is strong and enduring. Having said that, just because we have had centuries-old relations does not mean that we do not have to endeavour to sustain and nurture our present day relations. If anything, it needs more hard work by all concerned so that we are not lulled into complacency. The enormous bank of goodwill and mutual comprehension between our two regions allows us to build a strong edifice of substantial contemporary relations.
3. India considers the Arab region very important in shaping our political, economic, trade, defence and security policies at both the regional and global level. Our approach on issues affecting the Arab world is based on principles, not expediency. India has endeavored to follow the spirit of South-South solidarity and cooperation in its dealings with the Arab world. In keeping with our desire to strengthen our relations with the countries of the region we are trying to put in place a structure of multifaceted cooperation covering all sectors. It is a matter of satisfaction that our efforts are being matched in equal measure by the countries of the Arab world.
4. Arab countries, as vital sources of oil and gas whether from the Gulf and Saudi Arabia or more recently from Egypt, Sudan and the Maghreb, have become essential to India’s energy security needs. Indian companies have secured concessions or have otherwise invested in the oil sector significantly in Sudan, Egypt and Libya. Less publicized, perhaps, is the enormous importance to India’s food security of countries such as Jordan, Morocco, Tunisia and Algeria as providers of rock phosphate and phosphoric acid and potash, all of which translate into fertilizer for our farmers. Egypt has emerged as a significant Indian investment destination with Indian investments estimated at over US $500 million. Some Indian companies are also exploring possibilities of setting up plants to manufacture phosphoric intermediates in Morocco, Algeria, Tunisia and Jordan. We are also examining the possibilities of working together with Syria in this regard. As Shri Agarwal has just informed us UAE is our second largest trading partner after China. These are important milestones on our road to enhance economic cooperation.
5. Besides the hydrocarbon and fertilizers sectors, Indian companies have executed or are in the process of completing a variety of projects including those financed by concessional lines of credit. Examples include a thermal power plant in Sudan, a cement plant in Djibouti, an architecturally complex bridge in Jordan and a variety of projects in Libya.
6. Now coming to the question of trade, we see that India’s trade with Arab countries is booming. A look at our figures of trade is illuminating. We have already heard that the Gulf region has emerged as a major trading partner of India. During 2006-2007 the total two-way trade was US $ 47 billion and in the year 2007-08 it reached more than US$ 76 billion. According to ASSOCHAM, this year over $ 100 billion is supposed to be our two-way trade with the Gulf region. Trade with the non-Gulf Arab countries totaled more than US$ 13 billion in 2007-08. Total trade with Arab countries was about US$ 90 billion in 2007-08.
7. I am happy to inform you that to give a boost to trade relations, we are negotiating with the Gulf Cooperation Council (GCC) to conclude an India-GCC Free Trade Agreement (FTA). This would complement our ongoing and rapidly expanding bilateral economic engagement with individual member countries of GCC. The third GCC-India Industrial Conference, which was held in Mumbai in 2007, was a success and it has further consolidated our economic interaction. We are working to hold the fourth GCC-India Industrial Conference in November this year. The 2nd Indo-Arab Investment Conclave, in which all Arab countries and Arab Ambassadors are partners, will be held in Delhi in February next year.
8. India has always shown its willingness to share with our Arab brethren our experience and expertise in institution and capacity building, governance, science and technology including Information Technology and biotechnology, healthcare and higher education including training of Arab officials, diplomats, soldiers and scholars. The Secretary General of the League of Arab States and my good friend, H.E. Mr. Amre Moussa, visited India in November-December 2008. We are working on spirited implementation of the Memorandum of Cooperation signed between India and the League of Arab States during the visit and on the establishment of an Arab-Indian Cooperation Forum. This will greatly deepen our relations in many sectors including energy, education, human resources development and trade and investment. I look forward to cooperation from all to carry this ambitious agenda forward.
9. Excellencies, Ladies and Gentlemen, the Arab world has always figured very high in India’s foreign and trade policy priorities. India considers the Arab world a key part of its strategic neighbourhood. India desires to strengthen cooperation to explore opportunities across the entire spectrum of potentialities that exist. We wish to work together today with an eye on tomorrow: to consolidate our ties in emerging sectors of the economy so that we can develop a framework for future generations. Our economies are complementary. In many areas, countries in the Arab world have the capital, while India offers the opportunities, especially for the development of infrastructure. The more the long-term linkages that India and the Arab world develop, the greater will be our mutual stakes and interests in each other’s success and prosperity. I want to assure our Arab friends that it is not only financial investments that we are thinking of: we are invested in the future of our relationship.
10. While concluding, I would like to underline that we have in place a framework for cooperation, which is constantly deepening and widening. While its pace could be faster, a critical mass has already developed to take us into a qualitatively upgraded relationship. There are many dimensions to Indo-Arab relations, some very old and some very new. I am sure that this Manual brought out by ASSOCHAM will contribute in substantive measure to one important aspect – business and trade relations. I would encourage ASSOCHAM to bring out a similar Manual on India in the Arabic language for distribution in all the Arab countries. I wish all success to our joint efforts and ASSOCHAM and the Missions of Arabic countries in India to boost Indo-Arab relations and take them to an even higher plane.
Thank you.