The Hindu Business Line : Call for closer ties between SAARC, Gulf states — Top 50 Indian, Gulf cos urged to step up investments

GREATER economic co-operation between the two political blocs - Gulf Cooperation Council (GCC) and SAARC - and the need for the top 50 Indian and Gulf companies to actively interact through large investments on both sides are among a host of strategies that have been put forward to achieve a paradigm shift in the economic cooperation between India and the Gulf states.

The suggestions came at the inaugural day's session of the first India-Gulf Partnership Summit titled "India Calling 2005" here today.

Prominent UAE nationals, who addressed the conference wholeheartedly recognised India's emerging role as an economic powerhouse and indicated that three Gulf states were keen to forge strong alliances with India in diverse sectors.

The "need to think big" was cited as the underlying criteria for meaningful Indo-Gulf economic co-operation. "This will require that big companies - the top 50 Indian firms and the top 50 Gulf companies - to invest in each other's countries in a significant manner. They have to come on board to work together to take the cooperation to a higher level," said Mr Abdul Aziz Al Ghurair, prominent businessman and CEO of Mashreq Bank.

He also called for a dialogue and a forging of closer ties between the GCC and SAARC that will provide the required political support for future Indo-Gulf cooperation. Working alongside regulations in the host countries and the need for governments on both sides to create an investor friendly environment were also cited by him as crucial to strong economic partnerships.

Lack of transparency on the GCC side and infrastructural shortcomings on the Indian side also need to be addressed, he said.

Sheikh Saud bin Saqr Al Qasimi, Crown Prince of Ras Al Khaimah, the chief guest at the inaugural session, said he was very impressed with India's economic progress. He drew similarities between India and the UAE and pointed out that entrepreneurs had played a key role in changing perceptions about these countries and contributing to their growth.

He also invited Indian businessmen to invest in Ras Al Khaimah, where he promised they would be able to function in a free, efficient and investor friendly environment. The emirate has embarked on a series of reforms to transform the business sector, he said.

Mr Oscar Fernandes, the Union Minister of State for Overseas Indian Affairs, said that India's booming economy was set to reach a higher level with more structural reforms and infrastructure developments in the offing. He said that the summit was a great opportunity to forge partnerships.

He said an Overseas Indian Knowledge Network will soon be established by the Ministry to facilitate exchange of knowledge and ideas with NRIs across the world. The annual Pravasi conferences also played a crucial role in the participation of NRIs in India's economic development, he said.

Mr Abdul Rahman Al Ghurair, First Vice-President, Dubai Chamber and Mr Mirza Al Sayegh, patron of the Indian Business and Professional Council, also called for setting up a reliable platform for forging close business ties with India.

Mr Rajesh Kapadia, President, IMC, co-organiser of the summit, said that networking was the main purpose of the summit and the conference had elicited a positive response from the business community.

Mr Nikhil Meswani, Executive Director, Reliance Industries, in a plenary session, highlighted several key areas such as ports, power, tourism, roads, gems and jewellery and textiles as important for Indo-GCC cooperation that would generate billions of dollars in business over the next five to 10 years in view of surplus GCC funds and higher purchasing power on the Indian side.

Mr R. Gopalakrishnan, Executive Director, Tata Sons Ltd, said that Indian managerial expertise was unique in the world and this needs to be tapped by the GCC states. "It is the people who will make Indo-Arab cooperation work," he added.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page