India hopes to sign a free-trade pact with the six-nation GCC to boost economic ties, after negotiating trade possibilities in goods, services and investment sector by 2007, Commerce Minister Kamal Nath said on Saturday.
Addressing the second India-Gulf Cooperation Council Industrial Conference here Saturday, Kamal Nath said the two sides had made significant progress in pursuing the proposal for a Free Trade Agreement for boosting economic ties.
The outcome of the latest round of discussions three days ago in Riyadh, Saudi Arabia, was fruitful and both sides resolved to finalise the FTA by early 2007, he was quoted as saying by an official release.
"We also agreed to expand the scope to include services and investment, thus making it a Comprehensive Economic Cooperation Agreement (CECA) instead of a mere FTA," he said.
Excluding oil imports, India's trade with GCC -- which comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE -- would exceed USD 20 billion in the current financial year, he said. In a couple of years, India's trade with GCC could be more than that with the US.
Nath recalled signing the Framework Agreement on Economic Cooperation with the GCC in August 2004 while committing to broad-based economic and commercial partnership. He stressed the strategic relevance of the region and invited Gulf entrepreneurs to invest in India.
"There is convergence of interests between India and GCC in the present global economic environment. While the GCC countries are experiencing a period of rapid growth propelled by oil revenue windfall on account of high prices, in the economic reconfiguration India has emerged as a favourite investment destination," Nath said.
