The Hindu Business Line : India, GCC States may sign economic pact next year

India and the six-member GCC (Gulf Cooperation Council) States will sign a comprehensive economic agreement, that includes a wide-ranging free trade agreement, in March 2007, according to Mr Kamal Nath, Union Minister of Commerce and Industry.

Mr Kamal Nath, who is here as part of a visit to some Gulf States, told Business Line that discussions held individually with the GCC member States and joint summits and business conferences have helped to make good headway in achieving the goal of an India-GGC FTA.

"We hope to sign an economic agreement during the Indo-GCC summit in March next year. The agreement will bring in wide economic co-operation between India and the Gulf States which will include the FTA and also cover areas like services and investments," he said.

The recently concluded GCC-India business conference in Muscat, which the Minister attended, was also successful in laying the outline for a wide-ranging economic agreement between the two sides, he said.

Talks on partnership

Mr Kamal Nath, who had detailed discussions with the Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed Al Nahyan, said the talk revolved around a new strategic partnership and enhanced economic engagement with the UAE.

"We are focusing on a number of areas, including investment, trade and services," Mr Kamal Nath said.

Oil imports

On whether talks were held for importing more oil from the UAE, the Minister said the matter was discussed in general terms. "The UAE and other Gulf States are open to the idea of increased oil supplies to India. The GCC has tremendous reservoir of goodwill towards India and value an economic partnership with us. We would, therefore, look for more oil imports from these countries," he said.

Currently, a substantial portion of Indian crude oil imports from the GCC come from Saudi Arabia. Nearly two-thirds of India's crude oil imports are from the Gulf region.

Mr Nath also held useful discussions with senior officials of the Abu Dhabi Chamber of Commerce and Industry. "Basically, we have put across the growth trajectory of India to the chamber officials. There is a lot of enthusiasm here about doing business with India and the outlook is positive," he said.