JEDDAH: The Gulf Cooperation Council (GCC) and India are moving in the right direction to conclude a free trade agreement (FTA), said Abdulrahman Al Rabiah, chairman of the Saudi-Indian Business Council Friday in New Delhi. A framework agreement for the FTA has already been signed. The agreement is aimed at boosting comprehensive economic cooperation covering goods, services and investment. The potential sectors for investments by Indian entrepreneurs 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 network. The pact will further strengthen the trade ties among member countries, with petroleum oil and energy, gas and fertilizers, information technology, higher education, civil aviation and agriculture the likely immediate focus of the accord. At an interactive meeting of a 33-member business delegation from Saudi Arabia with their counterparts from the Associated Chambers of Commerce and Industry of India (ASSOCHAM), Saudi Arabia's Ambassador Faisal Hassan Ahmed Trad urged Indian companies to increase investment in his country. Among others present were chairman of ASSOCHAM's real estate committee Navin Raheja, chairman of ASSOCHAM's international affairs committee Anil Agarwal and ASSOCHAM' secretary general D.S. Rawat. The India-GCC FTA is expected to open a billion consumers' market for Gulf countries. An FTA in the region will benefit India substantially as the six-member countries control over 45 percent of the world's recoverable oil wealth and 20 percent of gas resources. The FTA will remove restrictive duties and push down tariffs on goods being traded. This will provide 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. Two-way trade between India and GCC could exceed $130 billion by 2013-14, up from $100 billion in 2009-10. The India-Saudi Arabia bilateral trade increased to $21 billion in 2009-10 from $3.44 billion in 2005-06. India's exports to Saudi Arabia increased to $3.90 billion in 2009-10 from $1.80 billion in 2005-06. Items having export potential to GCC countries include food products, pharmaceuticals, machinery and transport equipment, ceramic products, articles of apparel and clothing, cotton and woven fabrics, plastic and rubber products, essential oils, perfumery and cosmetics besides iron and steel articles.
