Gulf-India trade to grow 20%

Dubai: The Government of India and the Indian private sector anticipate a big leap in trade and investment between the UAE and India over the next five years, Indian Commerce and Industry Minister Anand Sharma said in Dubai Wednesday.

Speaking to reporters on the sidelines of the first India Business Summit in Dubai, Sharma said that despite the impact of the global financial crisis India's trade with the UAE grew nearly 70 per cent last year. The growth in trade volume is expected to be much higher this year.

"Last year our exports to the UAE grew more than 56 per cent while the imports were up by 76 per cent. For the Gulf region as a whole our trade volume exceeded $100 billion last year. This year we expect the trade volumes to go up by 20 per cent," said Sharma.

Welcoming the Indian initiatives to enhance trade and commerce with the UAE, Shaikh Nahyan Bin Mubarak Al Nahyan, UAE Minister of Higher Education and Scientific Research, said he is pleased with India's decision to select Dubai as the venue for the inaugural Made in India Show and India Business Summit.

"Choosing Dubai as the first place outside India to stage this unique event recognises and celebrates the fact that Dubai has a very high profile in world markets. The UAE has a pivotal role in regional and international trade and investment," Shaikh Nahyan said.

Huge participation

The India Business Summit, organised by the Indian Business and Professional Council in association with Confederation of Indian Industry and Federation of Indian Export Organisations, was attended by representatives of more than 300 Indian companies, delegates from the Chambers of Commerce in the UAE and members of the Indian business community here.

Addressing the delegates, Sharma said India is working with Gulf governments on the India-GCC Free Trade Agreement (FTA).

"These agreements are subject to long negotiations. But we are hopeful that we could reach a consensus and conclude the agreement in the near future," he said.

Despite the delay in the FTA negotiations, the minister said the direction of India's trade policy is to open up the economy to global trade. "In the aftermath of the global financial crisis many countries opted for protectionism. India on the other hand continued to open up for trade and that has helped us to survive the global slump in trade last year."

India's international trade grew 18 per cent last year as the total global trade volume declined about 16 per cent.

Sharma reminded the delegates at the summit that the growing trade and commercial relations between the two countries should translate into two-way investment flows.

"There are huge opportunities, virtually in every sector of the Indian economy, that offer some of the highest returns on investment. The infrastructure in the UAE is one of the best in the world and it gives numerous opportunities for Indian companies to invest here," Sharma said.

Shaikh Nahyan said India's continued progress and its strength in the face of current global economic conditions has won the UAE's admiration.

"I am confident that the India Show will stimulate more collaboration between India and the UAE. I am sure that the current world economic developments have created new opportunities for us to work together."