India, the largest trade partner of the UAE, seeks to further boost two-way trade relations and also want to attract foreign direct investment from the second largest Gulf economy, Indian Ambassador to the UAE M. K. Lokesh said.
The economic partnership of India and UAE in recent years has grown and strengthened considerably and UAE is now India’s largest destination for
its exports.
“This country [the UAE] has played a role in promoting India’s exports to various other regions in the world through excellent infrastructure and tax regime so its important area for us and this is going to continue to play role in promoting our exports globally,” Lokesh told Khaleej Times on the sideline of ‘
The India Show’.
He said the exhibition would be able to showcase India’s industry to the people here in UAE. Both the countries have very fruitful and productive partnership, he added.
Lokesh mentioned that India is one of the major investors abroad, but it also needs investment from the UAE as this country has one of the largest sovereign wealth funds. “We are in touch with ADIA [Abu Dhabi Investment
Authority],” he said.
India has huge investment opportunities in its infrastructure sector as India intends to spend $1 trillion on infrastructure projects in ten-year plan. The target is half-a-trillion dollars in the current five-year plan and another $500 billion in the next five years. About 30 per cent investment is supposed to come in power sector in next five years.
“Last year [2008-09] despite economic downturn our two-way trade grew by more than 50 per cent. During 2007-08 it was around $24 billion and in 2008-09 it reach $48 billion which is quite substantiate,” he said.
India wants to maintain these numbers, he said, adding: “We have trade figure of up to December and its growing.”
During the first nine months of India’s fiscal year, its exports to UAE crossed $16 billion up to December 2009 while UAE exports to India reach over $12 billion during the same period, according
to Lokesh.
Government of India has already announced the import export policy for the year 2009-2014.
“Our exports were growing at the rate of more than 20 per cent till the global economic crisis effect. We were also affected, but as far as UAE is concerned it is still showing very substantial
growth,” he said.
He mentioned that Government of India initiated many measures and an important step is to have more special economic zones for exports.
In 1990 trade ratio to GDP was less than 10 per cent and now its more than 35 per cent, he said, adding: “we want to increase it.” India is also on the way to become a major player in global trade as its looking to double its share of global trade by the year 2020. Government of India has already initiated a lot of measures to support exports.
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[email protected]Source :- khaleejtimes.com/biz