NEW DELHI (Commodity Online): A 30-member trade delegation from India will visit Saudi Arabia later this month to meet key Saudi government officials and businessmen for exploring new business avenues, looking to expand the two trade with the Gulf Cooperation Council (GCC), according to The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
Saudi Arabia has the world's second largest oil reserves and is a leading member of the Gulf Cooperation Council (GCC).
The Gulf kingdom’s industrial sector achieved 15% growth rate in 2011 and private sector’s contribution to the gross domestic product (GDP) amounted to 49% despite the prevailing global recession .
According to D.S. Rawat, secretary general, Housing, road and railway projects are key sectors where Indian investments and workforce can make a mark.
Presently, a total of 190 Indian companies are active in the Saudi market with investments totaling one billion dollars – 39 in industries, 54 in services and 93 in agriculture besides others in construction, information technology, designing, consultancy and financial services.On the other hand, a total of 55 Saudi companies or joint ventures are operational in India with a total investment of 200 million dollars.
India have identified various potential sectors for bilateral cooperation with the GCC like petroleum oil and energy, gas and fertilisers, information technology, higher education, civil aviation and agriculture and a framework agreement for the Free Trade Area(FTA) has already been signed.
The FTA will remove restrictive duties and push down tariffs on goods being traded. This will provide Indian pharma and chemical industry to export their products to the Gulf region. India is the third country apart from Japan and the United States to have become a dialogue partner of the GCC.
The GCC countries – Oman, UAE, Bahrain, Kuwait, Qatar and Saudi Arabia. and Two-way trade between India and GCC could exceed 130 billion dollars by 2013-14, up from 100 billion dollars in 2009-10.
Items having export potential from India to GCC countries include food products, pharmaceuticals, machinery and transport equipment, ceramic products, articles of apparel and clothing, cotton and woven fabrics, plastic and rubber products, essential oils, perfumery and cosmetics besides iron and steel articles.
India would be also look to expand services in the sectors which include information technology, telecommunications, education and training, healthcare services, tourism and hotel industry, banking and financial services, power generation, oil, gas and petrochemicals.
