India should engage with the Gulf Cooperation Council (GCC) as an entity in addition to the bilateral track, according to senior officials in the ministry of external affairs (MEA).
Talking to FE, officials said, ?The GCC grouping is very important for India, therefore there is a need to elevate our talks and relationship to a summit level.?
?Economic growth in India represents an opportunity for economies in our neighbourhood, including this region. India is in a position to absorb $500 billion investment in the next decade or so to meet the growing infrastructure sector. It is here that we see the new horizon of engagement with the Gulf region,? said the official.
In August 2004, India and the GCC signed a framework agreement on economic cooperation to explore the possibility of a Free Trade Area between them. However, the India-GCC free trade agreement (FTA) is currently on a back burner as the negotiations have stalled on several issues, said officials. Both sides have already held three rounds of negotiations on FTA. The fourth round was scheduled to be held in December last year, but recession came in the way. New dates are likely to be finalised soon.
According to officials, the GCC has emerged as a successful regional organisation, which has partners around the globe despite all the hurdles. In recent times, the grouping has taken decisions that broaden the horizon of its engagements with the outside world, including India, both in economic as well as political fields.
?Economic relations have been the backbone of India-GCC ties. GCC is the second largest trading partner of India, after the US. India?s total trade with GCC countries is estimated at $28 billion during 2007-08 and it could top $40 billion by 2010,? said the official.
In the economic field, there is a need for an increased participation of the private sector, exchange of technologies, cooperation in agriculture etc. which would help in improving the relationship.
Senior officials in Ficci told FE, ?In June India-GCC Industrial forum meeting, which will be represented by members of the GCC countries, will take place in Riyadh, where several issues relating to investments both ways will be discussed.?
Discussions on a broad range of issues, including the possibility of initiating negotiations towards a FTA and non-tariff barriers affecting Indian exports to the region, will be on the agenda of the meeting at Riyadh.
There is a need for diversification in trade between the two sides, and at the Riyadh conference attempt will be made to identify other sectors apart from Oil where both sides could work together, and how best Indian investments are in a position to take advantage of the opportunities available. Besides, this will also give a chance to India industries which will be attending the meeting under the Ficci flag will explore avenues on how to attract the GCC investments to India apart from the infrastructure sector, explained Ficci officials.
The GCC comprises Saudi Arabia, United Arab Emirates, Kuwait, Bahrain, Qatar and Oman.