Sunday, August 23, 2009

A new era of India-Arab economic ties dawns

New Delhi, Aug 23: As the world fights an economic downturn, a new dimension is being added to trade and business relations between India and the Arab world, enhancing centuries-old ties between two sides of the Arabian Sea. Though Arab countries, particularly the Gulf nations, have traditionally been looked at as an important source of oil and gas for India, today it has changed into cooperation across multiple sectors marked by cross-investments from both sides.

Following the signing of a memorandum of cooperation between India and the Arab countries during a visit of Amr Moussa, secretary-general of the League of Arab Nations to India late last year, the two sides are in the process of putting in place a structure of multi-faceted cooperation. India is also working on sealing a free trade agreement with the Gulf Cooperation Council (GCC), which has Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE) as its members. Nothing reflects the rapidly growing ties between the two sides across multiple sectors more than trade figures. Of India’s total international trade to the tune of $414.54 billion in 2007-08, Arab countries accounted for 20.99 per cent. Within the Arab world, India’s trade with the GCC nations alone rose to $66.75 billion in 2007-08, or 16.1 per cent of the country’s total global trade. And within the GCC, the country’s trade with the UAE increased to $29.11 billion in the same period, making it India’s largest trading partner after China and the US.

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