'India in talks with GCC countries to sign free trade pact'

Dubai, Oct 5 (PTI) India is in talks with members of the
Gulf Cooperation Council (GCC) to conclude a free trade
agreement and a framework agreement for the FTA has already
been signed, a leading Indian banker in the region has said.
In a note, Doha Bank Group CEO R Seetharaman said
bilateral trade between India and GCC countries exceeded USD
80 billion in the nine months up to December, 2010.
According to him, the GCC countries -- Oman, the UAE,
Bahrain, Kuwait, Qatar and Saudi Arabia -- have identified
various sectors, such as petroleum oil and energy, gas and
fertilisers, information technology, higher education, civil
aviation and agriculture, for potential cooperation with
India.
"The FTA will remove restrictive duties and push down
tariffs on goods being traded. This will provide scope to the
Indian pharmaceutical 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," Seetharaman was quoted by the Gulf Times
daily as saying.
According to him, there are several potential sectors for
investment by Indian entrepreneurs, which include information
technology, software development, telecommunications,
education, training and healthcare services, tourism and hotel
industry, banking and financial services, oil, gas and
petrochemicals, electricity, housing, road and rail networks.
"GCC investment in India has significantly increased in
the last two years and is now estimated at more than USD 125
billion," Seetharaman said.
The sectors that have attracted these investments are the
infrastructure sector, with a cumulative investment of USD 112
billion; special economic zones, with an investment of USD 12
billion; agricultural and food processing (USD 900 million),
real estate (USD 700 million) and oil and gas (USD 500
million).
On Qatar-India bilateral trade, Seetharaman said it was
likely to have exceeded USD 5 billion in the year to March,
2011.
Bilateral trade between the two countries has seen rapid
growth between 2006 and 2010. Qatari exports to India have
steadily increased in the last four years, reflecting rising
demand for Qatar's hydrocarbons in India.
Qatar's exports to India include petrochemicals, LNG,
fertilisers, sulphur and iron pyrites. India is also a major
buyer of Qatar's ethylene, propylene, ammonia, urea and
polyethylene output.