NEW DELHI, 19 April 2008 — Setting the stage for his two-day visit to Saudi Arabia beginning today, External Affairs Minister Pranab Mukherjee yesterday highlighted the need for expanding trade and investment between India and Arab countries. “An expansion of the investment footprint of Arab countries in India is long overdue and would be most warmly welcomed by the government and business alike,” Mukherjee said. During his visit, some of these ideas would be touched upon in his discussions with Saudi leaders.
Mukherjee’s visit would be followed by that of Planning Commission Deputy Chairman Montek Singh Ahuliwalia. “I am happy to convey that a delegation headed by the deputy chairman of the Planning Commission is visiting Saudi Arabia in early May to begin discussions on these ideas,” Mukherjee said.
Mukherjee made the remarks during his inaugural address at Arab-India Conclave jointly organized by the Indo-Arab Economic Forum and the Federation of Indian Chambers of Commerce and Industry (FICCI). Chief executives of over 100 companies from 13 Arab states are participating in the two-day conclave.
Tracing the commercial linkage between India and Arab countries to ancient times, Mukherjee highlighted its relevance in today’s world. “Trade and investment between these regions have again assumed great importance in the modern era,” he said. “It is now for all of us to devise and help build a modern and strong bridge over the Arabian Sea by enabling the flow of resources and expertise between the two ends.”
Mukherjee underlined macroeconomic challenges facing India: enhancing agricultural productivity, guaranteeing the country’s energy security and the rising young generation, an important part of global work force, who need to be invested in educationally. “For meeting all these challenges, India needs capital. Our guests from the Arab world would be aware that many of the countries they come from are not only flush with funds, but also have massive capacity to invest in the infrastructure needs of India,” Mukherjee said.
There is need to think “beyond trade” and look at avenues available for “two-way investment,” emphasized Saudi envoy to India and Dean of Arab diplomatic corps, Saleh M. Al-Ghamdi. The economic vibrancy in the Arab world and India provide a ripe ground to raise level of engagement, he said.
Welcoming Indian investors to the region, Al-Ghamdi pointed to the fact that Saudi Arabia alone had granted 190 licenses to Indian companies.
Suggesting that it was time to look beyond oil diplomacy, Sudan’s Minister for Investment Salman Sulieman Al-Safi called for Indian business houses to tap new sectors. He invited investment in mining and fisheries.
A memorandum of cooperation and plan of action for Indo-Arab Forum to be signed by both sides would provide an umbrella for enhancing Indo-Arab ties both at government and nongovernment levels, including the private sector, that will cover all aspects — economic, social and cultural, according to Ahmed Salem Al-Wahishi, head of the Arab League in India.
Currently, no country from the Arab world figures among the top 10 countries investing in India. Describing business opportunities between India and the Arab world as immense, Faud Shaker, secretary-general of Union of Arab Banks (UAB), said the need of the hour was to adopt corrective measures and improve bilateral ties. “The total export-import activity between India and the Arab countries was $24 billion in 2007. We expect that it would rise to $55 billion by the end of 2010,” he said. With the conclave opening just a day ahead of Mukherjee’s visit to Saudi Arabia, it clearly signals India’s determination to foster stronger ties with the Arab world. Referring specifically to Saudi-India ties, an official spokesperson said: “Mukherjee’s visit testifies to the close relationship that India and Saudi Arabia are bound by.”
In addition to bilateral issues, during Mukherjee’s visit, the two sides are expected to exchange views on regional and global matters. The faltering peace process in the Middle East will figure prominently in their discussions, sources said.
India yesterday issued a statement expressing concern at an upsurge of violence in Gaza. “India remains firmly convinced that dialogue remains the only viable option that can effectively address the issues confronting the region and its people. We reiterate our call to all sides to abjure violence,” a spokesperson for the Ministry of External Affairs said.
