India, Gulf relationship beyond oil
The trade relationship between India and the Gulf Region has been steadily going beyond oil. The Indo-Gulf business cooperation has huge scope for growth through newer joint ventures, collaborations and with diversification of the trade-basket.
By TNN |
The trade relationship between India and the Gulf Region has been steadily going beyond oil. The Indo-Gulf business cooperation has huge scope for growth through newer joint ventures, collaborations and with diversification of the trade-basket. The ET SME International Trade Forum Series on "Indo - Gulf Trade" presented by HSBC explored the various trade opportunities between the two regions.
Gold is one of the most preferred items of trade amongst other jewellery items between India and the Gulf Countries. Mr Sivaraman, Sole Proprietor of Videolabs, pointed out that though at present there are some purity issues but due to the dominating presence of hallmark jewellery the purity issue would be over in a month's time.
The next big trade possibility could be the power, the energy and the renewable energy sectors. He suggested that the scope of joint ventures and mutual collaborations between the two regions in these sectors should be explored.
According to Dr KK Jajodia, Chairman of Assam Company, and Gulf Council - Assocham, "Many business bodies in the Gulf have realized the importance of alternative sources of energy. The Gulf Countries are thinking of making big investment in India in the Bio-Diesel sector. They are also exploring other alternative sources in terms of wind energy and solar power.
India has a great opportunity to cooperate with them." The strength of the Middle East is that its rulers are very open-minded and have the desire to do something together. In this process they have foreseen the role of alternate energy.
Puneet Chadha, Country Head of Commercial Banking at HSBC (India), suggested that one way in which India could provide some partnership to the Middle East is through Water Treatment Plants. He said "Though it is an area surrounded by the sea, the Gulf region is short on water. Increasingly, they want to create a green environment by the way of drip irrigation."
Vaijayanti Pandit, Director, West Region Council, FICCI, asked whether India could invest in
the infrastructure industry in the Middle East. Anand P Seth, Jt. Dy. Director General, Federation of Indian Export Organization (FIEO), remarked that Dubai and other parts of the Gulf were already doing pretty well in terms of infrastructure. The Project services from India that have gone to the Gulf have already created a niche for
themselves and have been appreciated by the local Government. India is already doing good business with the Gulf in terms of the infrastructure industry.
Tourism as an opportunity area was also discussed. But Dr Pandit pointed out that though the fares had become cheap Dubai is very similar to Mumbai and hence the chances of tourism growign seemed quite bleak.
Mohan Nihalani, President, All India Exporters and Importers Association, drew attention to the fact that anything exported to the Gulf attracted heavy customs duty and that something should be done about the same. He also informed that a top financial company in Saudi Arabia along with the top commodity exchange com-pany in India are getting together and forming a Middle East Platform.
Dr Pandit concluded by underlining the tremendous trade potential between India and the Gulf Region. Of course, there are hurdles too. But looking at the overall positive mood, it is important for Indian businesses to explore trade opportunities beyond oil.
Gold is one of the most preferred items of trade amongst other jewellery items between India and the Gulf Countries. Mr Sivaraman, Sole Proprietor of Videolabs, pointed out that though at present there are some purity issues but due to the dominating presence of hallmark jewellery the purity issue would be over in a month's time.
The next big trade possibility could be the power, the energy and the renewable energy sectors. He suggested that the scope of joint ventures and mutual collaborations between the two regions in these sectors should be explored.
According to Dr KK Jajodia, Chairman of Assam Company, and Gulf Council - Assocham, "Many business bodies in the Gulf have realized the importance of alternative sources of energy. The Gulf Countries are thinking of making big investment in India in the Bio-Diesel sector. They are also exploring other alternative sources in terms of wind energy and solar power.
India has a great opportunity to cooperate with them." The strength of the Middle East is that its rulers are very open-minded and have the desire to do something together. In this process they have foreseen the role of alternate energy.
Puneet Chadha, Country Head of Commercial Banking at HSBC (India), suggested that one way in which India could provide some partnership to the Middle East is through Water Treatment Plants. He said "Though it is an area surrounded by the sea, the Gulf region is short on water. Increasingly, they want to create a green environment by the way of drip irrigation."
ADVERTISEMENT
Thus, he concluded that some companies can have significant opportunities in this area. "The other opportunity," said Mr Chadha "is the Project Exports. Because the Middle East is rebuilding itself and reinvesting in its structures, it needs a lot of project expertise. They need people who can support the projects. It could be in the form of equipment, management expertise or project deliveries." Vaijayanti Pandit, Director, West Region Council, FICCI, asked whether India could invest in
the infrastructure industry in the Middle East. Anand P Seth, Jt. Dy. Director General, Federation of Indian Export Organization (FIEO), remarked that Dubai and other parts of the Gulf were already doing pretty well in terms of infrastructure. The Project services from India that have gone to the Gulf have already created a niche for
themselves and have been appreciated by the local Government. India is already doing good business with the Gulf in terms of the infrastructure industry.
Tourism as an opportunity area was also discussed. But Dr Pandit pointed out that though the fares had become cheap Dubai is very similar to Mumbai and hence the chances of tourism growign seemed quite bleak.
ADVERTISEMENT
Dr. Jajodia highlighted the significance of trading with the Gulf as it is the largest producer of oil and oil based products. Mr Sivaraman described Dubai as the window of the Middle East and stated that Africa sources all its goods from Dubai. Mohan Nihalani, President, All India Exporters and Importers Association, drew attention to the fact that anything exported to the Gulf attracted heavy customs duty and that something should be done about the same. He also informed that a top financial company in Saudi Arabia along with the top commodity exchange com-pany in India are getting together and forming a Middle East Platform.
ADVERTISEMENT
Mr Chadha highlighted the significance of strategically maintaining a symbiotic relationship with the Arab countries for fulfilling our energy needs. "We need to understand that it is a resourceful region and geographically it is nearby to India," he said. Dr Pandit concluded by underlining the tremendous trade potential between India and the Gulf Region. Of course, there are hurdles too. But looking at the overall positive mood, it is important for Indian businesses to explore trade opportunities beyond oil.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
