- India recieved $23 billion remittance during 2005-06 from NRIS
- Non Gulf NRIs contributed only $ 3 billion
- A whopping amount of $ 20 billion was from Arabian Gulf
- Kerala recieved the huge portion
- FDIS from GCC exceeded $ 2 billion this year
- India calls for more Arab investment
Nov 13, 2006,
New Delhi, Nov 13 (IANS) India Monday reiterated its solidarity with the Arab world, home to over a four million strong Indian diaspora, and called for converting longstanding historical and civilizational ties into a vibrant economic partnership.
'We should use attitudinal ties between people to enhance trade linkages between India and the Arab world. Oil-exporting countries of the Arab world, in particular, should increase investment in India,' Finance Minister P. Chidambaram said in his inaugural address at an international conference at the Vigyan Bhavan convention centre on promoting India-Arab economic relations.
The two-day conference, which is being attended by ministers, diplomats, academics, business and opinion leaders from India and Arab countries, has been organised by the Indo-Arab Economic Cooperation Forum and the Institute of Objective Studies.
Underlining India's centuries old multi-faceted ties with the Arab world, Chidambaram spoke about geographical proximity, long-standing cultural and trading ties and 'unbroken relation of cordiality' between the two sides.
He, however, rued that the foreign investment from Arab countries in India are much below potential. Even rich Arab countries are not investing in India enough, he said.
To further accelerate bilateral trade and investment, the minister said that India will be signing bilateral investment protection agreement with more Arab countries and discussions are already going on for negotiating a free trade area (FTA) between the two sides.
Calling Indian workers in the Gulf countries 'an investment of human capital in the Arab world,' Chidambaram said remittances from Indians working in these countries worked out to a whopping $20 billion. In the first quarter of this year alone, remittances have exceeded $6 billion, he said.
Bilateral trade between India and the Arab world has been growing steadily and will scale new heights in the future, he said. FDI from Gulf Cooperation Council (GCC) countries has exceeded $2 billion this year.
Besides the continuing cooperation in energy sector, the Arab countries supply nearly 30 per cent of India's crude oil needs, IT, infrastructure, biotechnology, nanotechnolgy, and financial services are key future areas of bilateral cooperation between India and the Arab world.
Anwar Ibrahim, former deputy prime minister of Malaysia, lauded the rise of India on the global stage and praised the strong fundamentals of India's economy as exhibited in its high economic growth and its increasing attractiveness as a hub of investment for the world.
Alluding to Indian Nobel Prize-winning economist Amartya Sen's concept of 'development is freedom,' Ibrahim, who was the guest speaker, said that the Arab countries should take a 'closer look' at India and called for balancing economic growth with a more humane social order.
'In India and the Arab world, we have to maximise the opportunities that globalisation is creating to ensure that there is inclusive and all-round growth in our regions,' said Mohammad Manzoor Alam, president of Indo-Aran Economic Cooperation Forum.
India received the highest inbound remittance estimated at $23 billion in 2005-06, while China received $21 billion. In 2004-05, China received $20 billion and India received $18 billion.
Interestingly, India received the highest inbound remittances with only 22 million non-resident Indians, while there are about 40 million Chinese residing outside China. Western Union managing director (South Asia) Anil Kapur said this was primarily due to the social and family structure in India.
Interestingly, India received the highest inbound remittances with only 22 million non-resident Indians, while there are about 40 million Chinese residing outside China. Kapur said this was primarily due to the social and family structure in India.
“The number of Indians going abroad is increasing every year and the money coming into the country in the form of remittances is also swelling,” MoneyGram International country manager Harsh Lambah said, adding the industry is all set to witness further growth. As per an estimate, about half a million Indians migrate annually.
Kapur also said this industry needs to be more organised as it would directly add to the foreign exchange kitty. Remittances are high in all the southern states, apart from a few in the north like Punjab.