India looks to strengthen relations with GCC

India is strengthening its economic relations with the GCC with several initiatives, including an Indo-GCC economic summit planned for early next year, a senior visiting Indian diplomat said yesterday.

India plans to resume crude oil imports from Iraq if sanctions on Iraq are lifted.

R.M. Abhyankar, Secretary, Asia and North Africa, Ministry of External Affairs, India, told a gathering at the Zayed Centre for Coordination and Follow-Up: "The summit will focus on business between the two countries. India looks forward to this summit."

The summit is planned for March 2003, in India with the Confederation of Indian Industry (CII) playing a big role in this.

The summit assumes significance in the wake of India trying to build up an institutional relationship with the GCC similar to that of the Indo-U.S. and Indo-EU relationships.

Trade between India and the GCC currently hovers around $10 billion annually. He said the future of the Indo-Arab relationship depends greatly on the fact that India is a growing market for energy and gas.

India's imports of 80 million tonnes per annum (mtpa) of oil and gas annually is expected to be 189 mtpa by 2005 and 364 mtpa by 2010.

"This provides the market ..... for intensifying exchanges between India and the GCC. India is looking for more opportunities having finalised deals for importing LNG from Qatar for a fertiliser plant in Oman," he said.

India, he reiterated, advocates the lifting of sanctions on Iraq now that Iraq has agreed to allow UN inspectors into the country. "Iraq used to supply 30 per cent of India's crude oil requirements until 1991. Iraq can be a source of supply in the future and India looks to Iraq for supplies."

He added: "Iraq does fulfil the security council resolutions and we welcome inspection by the UN and are happy that the U.S. is going through the UN for a second resolution. We are waiting to see how it goes."

Agreeing that India's trade with Syria was not high (currently some $70-$80 million), Abhyankar said several proposals have been made to Syria regarding the setting up of phospatic fertiliser plants and tractor lines there.

"We are ready for any cooperation with Syria in trade and economic matters," he stated.