India invites oil-rich Gulf to invest in energy projects
Thursday, 07 December 2006, 18:30 IST
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Dubai: With the Arab world sitting on huge cash reserves because of high oil prices, India's Commerce Minister Kamal Nath has called upon industrialists here to invest in India, especially in infrastructure projects. "Our requirement of foreign investment in power, telecom, roads, ports, housing and other areas is in excess of $150 billion," Kamal Nath told the first-ever India-Arab World Chief Executive Officers' Summit here Thursday. "I am sure this would attract the attention of infrastructure and finance firms in the Arab world. In the wake of the oil boom, the Arab world, particularly the oil-producing countries have run up substantial investible resources," he added. "In the past, you were inclined to direct your investments to the western world. But I believe in the changed scenario, India offers a much more stable, friendly and rewarding investment environment." Kamal Nath - who is leading a large delegation of industrialists to the event - said the Arab world could also help India in its quest for energy security and added that India was willing to sign investment protection pacts for this. "If we were to focus on specific areas, India is well placed to provide refining services to Gulf nations. Facilities located in India can enhance your capacity. A strong Indo-Arab partnership is central to India's long-term energy security." The event was jointly organised by the Confederation of Indian Industry (CII) and the commerce ministry in partnership with Moutamarat - an agency set up by the Dubai government to hold conferences and exhibitions. According to the minister, the potential areas of interest in India to investors from Gulf countries include information technology, outsourcing, transportation, services, construction, research, biotechnology and nano-technology. "Our IT and telecom firm have aided governments to set up e-governance systems. Perhaps, these could be efficiently replicated in the Arab countries too," Kamal Nath added. He also mentioned that India had emerged as a global hub for steel, automobiles and auto components, petrochemicals, paints, textiles, fabrics, leather goods and pharmaceuticals. Referring to Indo-Arab trade, Kamal Nath said these were poised to diversify and grow further in the coming years, having already risen 17.23 percent in the last fiscal to $17 billion from $14 billion in 2004-05. "Oil is indeed the key import item. Excluding oil, India's imports from the Arab world, which stood at $9 billion in 2004-05, went up 13.9 percent to $11 billion in 2005-06."
Source: IANS
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