Trade show seeks to build on UAE ties

Dubai: The first Made in India Show, an international sourcing fair of Indian industries organised by the Federation of Indian Exports Organisations (FIEO) opened at the Dubai International Convention and Exhibition Centre yesterday.

The show, with more than 250 companies participating, was officially inaugurated by Shaikha Lubna Al Qasimi, Minister of Foreign Trade. Leading Indian companies such as Tata Motors, Tata Consultancy Services, Ashok Leyland and textile giant Raymond's are among the participants at the show that will conclude tomorrow.

"The UAE is the largest trading partner of India. With this show we expect to sustain the recent surge in trade between the two countries. The show will be an ideal platform for Indian companies to explore business opportunities in the UAE and the whole of Middle East and North Africa region," M.K. Lokesh, ambassador of India, said on the occasion.

Top trading partner

According to figures from the UAE Ministry of Foreign Affairs, India was the UAE's top trading partner in 2009 with non-oil trade totalling $32.11 billion (Dh117.9 billion).

Trade figures compiled by the FIEO show the UAE accounted for about 10 per cent of India's $490 billion trade in 2008-09. While the imports from the UAE amounted to $23.79 billion, Indian exports to the UAE last year were put at $24.47 billion.

"The primary objective of the event is to showcase the strength of India in manufacturing and services and also highlight India's attractiveness as an investment destination in sectors like infrastructure and services. The UAE is the largest non-oil trading partner of India and tenth largest foreign direct investor in India while India is third largest investor in the UAE. Despite the global slowdown India's exports to the UAE jumped to 56 per cent last year," said A. Sakthivel, president of FIEO.

Speaking at a business networking event organised as part of the Made in India Show, Rashid Humaid Al Mazroui, board member and member of the executive committee of the Dubai Chamber of Commerce and Industry, said the presence of a large number of Indian businesses in Dubai and across the UAE gives immense scope for expanding the trade and investment ties between the two countries.

"We have nearly 20,000 Indian partnership firms operating in Dubai and about 15 per cent of Dubai's total non-oil trade is with India. I see huge potential for expansion in trade and two way investment flows," Al Mazroui said.

In recent years India has emerged as a leader in knowledge based economic activities such as Information Technology, pharmaceutical manufacturing, research and development in engineering and automotive manufacturing. The Planning Commission of India has projected an investment to the tune of more than $1 trillion in the infrastructure sector over the next decade.

Scope for investment

The foreign direct investment (FDI) data for the last 10 years shows that FDI from UAE into India has been only about $1.5 billion out of the total FDI flow into India of $110 billion. This is only about 1.4 per cent of the total FDI flow into India. "There is ample scope to enhance the FDI flow into India from the UAE in the days to come. While infrastructure is just one area, all sectors of the economy offer attractive returns on investment," said Ajay Sahai, director general of FIEO.

Speakers at the event said that India has the unique demographic advantage of the world's youngest population and the largest population of trained professionals provides a perfect complement to the UAE's economy which is moving towards more and more services and a knowledge based one. Further, the UAE is also looking forward to safer investments and India is well poised to provide this opportunity.

India business summit

This will be organised by FIEO, Confederation of Indian Industry and Indian Business and Professional Council, Dubai today and will showcase India as an attractive investment destination. The event will be inaugurated byAnand Sharma, India's commerce and industry minister. Shaikh Nahyan Bin Mubarak Al Nahyan, Minister of Higher Education and Scientific Research, will lead the UAE team to the event.

India cultural evening

A grand India cultural evening will be held today at Shaikh Rashid Hall. The cultural evening will include a Kathak classical dance performance by the troupe of Kumudini Lakhia, India's leading Kathak choreographer. The event will also see Bollywood celebrities including film director Madhur Bhandarkar and actress Kangna Ranaut attending.

Mango mood

A display of a large variety of Indian mangoes will be organised by Apeda (Agricultural and Processed Food Export Development Authority) during the India Cultural Evening and Dinner.