New Delhi: India, one of the fastest growing economies, is ready to play a greater role in the global economy, Anand Sharma, India's Minister for Commerce and Industry, told Gulf News in an exclusive interview.
He said that the Indian economy is expected to grow in the 9-10 per cent range over the next two-three years.
Brand India, he said, stands for quality and class, and in the changing global economic scenario the country is poised to play a "defined and enlarged role".
Gulf News: How do you see India's role in the global economy with Brand India becoming a power to reckon with? What is the idea behind the India Brand Equity Foundation [IBEF]?
Anand Sharma: The setting up of India Brand Equity Foundation (IBEF) by the Government of India has been a major step forward to promote Brand India. IBEF, through its various campaigns and initiatives, has created a resonance about Brand India, which needs to be re-enforced and carried forward on a consistent basis.
India today has emerged as one of the key nations shaping the contours of the world economy, consistently charting a growth path over the last few years. Brand India is an idea which attracts business leaders from all over the world. Today, the triumph of India is visible in almost all fields — with some aggressive cross-border acquisitions, India has been rewriting the global business equations; India has established its leadership in IT and knowledge-based industries globally.
The total merger and acquisition and private equity deals in March this year were valued at $13.83 billion [Dh50.86 billion] as compared to $2.57 billion in the corresponding month of 2009. India is today one of the fastest growing economies in the world with a liberalised trade policy, one of the largest stock exchanges, a hub of IT industry that is growing exponentially, a strong pool of scientific and technical manpower, and the largest English-speaking population. Today, India's IT industry has approximately 275 Fortune 500 companies as its clients, and more than 100 Fortune 500 companies have R&D facilities here. India's burgeoning population is transforming into a growing consumer class. India has finally found its own place on the world map.
How is India's relationship with the UAE and how do you see the India Shows events helping improve this? What are your expectations from the upcoming event?
The expectations from this show are to consolidate Indian presence in the UAE market as well as to use the opportunity it provides to enter other important markets such as Iran, Iraq, Africa, CIS countries etc. Further, we aim to attract investments from the UAE given India's favourable environment and strong economic growth. Our focus would be largely on harnessing investments for manufacturing and services sector. These two sectors would be the backbone of the Indian economy and they must be brought forward by an impressive line up of companies across different sectors. The Show will also see an India Business Summit wherein prominent business leaders from India and the UAE would be participating. Extensive networking opportunities are also planned during the three-day show, which is expected to strengthen business and understanding on both sides. Participants will also have the opportunity to enjoy India's culture and cuisine — the vibrant and integral aspects of Brand India.
The shows have been aimed as megaevents with a view of creating a major impact with the exhibitions, B-2-B meetings, road shows and culture, cuisine and tourism as integral elements of the shows. It is expected that 150-200 exporters will participate in each of the India Shows. The exhibitors would consist of a suitable mix of India's best and largest exporters in product-groups as well as medium and small exporters.
Whether it is going to be confined to just the UAE or are there any plans to organise similar events all over the world?
This is the first show being planned by India and similar such shows will be organised in other important countries. Based on the experience gained, it will be decided whether it should be made a regular annual event. Also depending on the feedback, we may organise similar events in near future in other countries.
You served as the Minister of State in the last cabinet. How is experience of working in promoting Indian trade and commerce?
My tenure as a Minister for State in the Foreign Ministry provided the initial thrust and prelude to understand as well as harness the resources of focus countries with which India has better ties and also those countries which are of strategic importance to us. The post also exposed me to different world leaders where I found opportunity to leverage our image for economic and social advantage.
What is the current volume of Indo-UAE trade and what are the plans for the near future and long-term?
The current financial year is an abnormal year due to global recessionary trends. [However, in the past few months, our exports have started to look up again.] The exports during April-January, 2010 was to the tune of $18.3 billion. Similarly, the imports during the same period were $14.26 billion. The total trade with the UAE during April-January 2010 was $32.56 billion.
The UAE ranks ninth in terms of cumulative FDI equity inflows received in India from April 2000 to February 2010. Total FDI inflows from the UAE over this period stand at $1.53 billion. Highest FDI inflows from the UAE in this period have been in the power sector, which accounts for over 18 per cent of FDI inflow from the UAE. Services sector, with over 9 per cent is in the second place and construction activities, with over 8 per cent is in the third place.
And the business opportunities in these sectors have only been expanding at a rapid pace in India for investors. Infrastructure projects present a $1.7 trillion opportunity over the next ten years. Sectors like power and construction offer ample opportunities for investment and participation for companies from the UAE. The sectors to focus include consumer goods, high level technology, industrial products, health care, financial services and basic industries.
One more area that plays a significant role is the tourism sector. The tourism sector is one of the areas that has good potential for future growth, especially medical tourism. As I understand, Emiratis coming to India are already utilising Indian health services, including the ayurvedic establishments and spas. Another area with considerable scope for cooperation in tourism is construction and maintenance of hotels. There is good scope for UAE to invest in over-all tourism sector in India.
Since UAE is focusing on developing its knowledge-based industries, and with India emerging as a world leader in space, agriculture, pharmaceuticals and biotechnology, there is considerable scope for cooperation in technology transfer, R&D and for joint ventures.
Which are the specific areas other than export of manpower where you see the prospects of increasing the volume further, especially Indian exports and the UAE investments in India?
The specific areas other than exports are manufacturing and services which are expected to be brought forward by an impressive line up of companies across sectors. With this in mind, the FDI policy was liberalised progressively through consecutive reviews of the policy and allowing of FDI in more industries in the automatic route.
Since October 2009, the manufacturing sector has exhibited strong vibrancy and dynamism, clocking growth rates of 15-17 per cent.
In the services sector, India has emerged as the software hub for the world, attaining leadership position in software and related services. The country is also doing well in export of professional and business services, travel and tourism, and research and development.
India is looking forward to further strengthening the economic cooperation with UAE, building on the goodwill that already exists. India's main exports to UAE include gems and jewellery, petroleum products, manufactures of metals, machinery and instruments; transport equipments; electronic goods. India's main imports from UAE include electronic goods, ores and metal scrap, transport equipment, sulphur etc.
How would you rate overall Indo-UAE ties?
The UAE was India's largest export destination in 2008-09. During the fin-ancial year 2008-09, exports to UAE were to the tune of $24.4 billion and it registered growth of 56.54 per cent when compared to previous year. Similarly, the imports also registered an increase of 76.46 per cent during this period. During the financial year 2009-10 (April-January) the UAE has been the top-most export destination for India comprising 13.01 per cent of Indian exports. As far as imports are concerned, UAE is the second largest country of origin of imports and comprises of 6.31 per cent share of India's total imports.
The India Show in Dubai will showcase India's strength in the field of manufacturing and services and will also highlight India's attractiveness as investment destination. This event aims at targeting buyers in the greater Middle East and North Africa (MENA) region. The total trade with the Gulf region during 2009-10 [up to December] is $56.41 billion and the corresponding figure during the same period in the previous year was $77.57 billion.
