India keen to strengthen trade links with countries in Gulf

To build on already booming business between regions

India has begun talks with GCC nations on a free-trade agreement to increase already booming business between the regions, according to Anand Sharma, India's minister of commerce and industry. Mr Sharma told the India Business Summit held at the Dubai World Trade Centre last week that his government was anticipating more trade and investment from UAE.

"Last year India's trade with GCC was US$100 billion [Dh367.3bn] and this year that is going to increase by $15bn to $115bn," he said. "So the UAE and GCC are very important partners to India and will be key to help India grow its economy." India's GDP is expected to double in size to $2.6 trillion by 2015, creating more business opportunities for UAE investors, Mr Sharma said. The summit, which was organised alongside the India Sourcing Fair, provided a platform for business leaders from both countries to interact and explore ways to further their business links as well as look into new investment opportunities.

Paras Shahdadpuri, the president of the Indian Business and Professional Council (IBPC) and chairman of the Nikai group of companies, said talks on a free-trade agreement started last year and were expected to conclude within 10 or 11 months. "There are plenty of opportunities to invest both in India and UAE," said Mr Shahdadpuri. A good example of those opportunities, he said, was India's plan to invest $550bn in infrastructure projects that could benefit both Indian and UAE companies.

"We support a close and strong economic relationship between India and UAE," said Sheikh Nahyan bin Mubarak, the UAE Minister for Higher Education and Scientific Research. [e-mail]