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Press Release
Inaugural Speech by the His Excellency Mr. Pranab Mukherjee, External
Affairs Minister at the India – Arab Investment
Projects Conclave (New
Delhi; April 18, 2008)
I am happy to have this
opportunity of inaugurating the Arab – India Conclave. This is a
laudable effort by FICCI, one of India’s oldest industry bodies and I
congratulate it for taking the initiative. I also take this opportunity
to extend a very warm welcome to all the delegates and wish them
productive participation in this two-day conclave.
I wish to extend a special welcome to our friends from the Arab world,
whose association with India through commerce spans many centuries of
our common history. The Silk Route between Asia and the Middle East was,
until the 13th century, among the world’s most important trade routes.
Trade and investment between these regions have again assumed great
importance in the modern era. Today, it is up to governments and the
private sector to work as partners in both India and the Arab countries
and create a more responsive investment climate that will allow this new
Silk Route to achieve its full potential.
This Conclave is aimed at businesspersons and potential investors keen
on establishing or expanding their existing projects through enhanced
financial, technical and managerial participation in India and the Arab
countries. It is also reflective of the desire of Indian industry to
engage and increase its involvement in its extended neighbourhood.
Today, there are enormous opportunities for profitable ventures in areas
as diverse as IT, telecom, auto parts, healthcare, biotech, etc. There
is also great potential in areas such as food-processing, education,
manufacturing, construction and banking services.
In my view, however, the
most important opening for the future is the chance for investible
capital on one side to combine virtuously with capacity and experience
on the other side. The increased availability of financial resources and
investment opportunities at both ends of the new Silk Route is there for
all to see. It is now for all of us to devise and help build a modern
and strong bridge over the Arabian Sea by enabling the flow of resources
and expertise between the two ends. This is especially relevant because
one area where India has developed considerable expertise is capacity
building, which we would like to share with our Arab friends.
Ladies and Gentlemen,
Let me underline for you three of the most important macro-economic
challenges facing India. The first and possibly most important, is
enhancing agricultural productivity. Increasing yields and productivity
through appropriate technological inputs is our primary aim. This would
entail creation of better infrastructure in irrigation facilities,
improved quality of seeds, improved farm practices in post-harvest
management, including cold chains, etc. We also need to tap the
potential available in the agro-based food processing sector, for which
enough scope exists through public-private partnerships. While the
achievement of food security in the last five decades remains one of our
greatest success stories, we are not immune to occasional global
imbalances, especially of the kind that we are seeing at the moment.
Our second major
challenge, which is almost inextricably linked to the first, is
guaranteeing our energy security. India has to depend, to a large
extent, on imported fuels for meeting its energy needs. Our energy needs
will grow in keeping with our projected growth. High oil prices, now
averaging more than 100 dollars a barrel, are a drag on our resources
that could otherwise have gone for more productive purposes. We are
conscious of these challenges and are exploring avenues for bilateral as
well as multilateral cooperation with source countries. Our aim is to
enter into long term arrangements for guaranteed supply of energy. We
are simultaneously making efforts in the area of renewable energy and
new technologies. Civil nuclear cooperation with various countries will
also help in the achievement of our energy security objectives.
Thirdly, India is a country of young people. For many years to come,
India will be one of the important contributors to the available global
workforce. However, in order to sustain this, we need to invest in our
people, in their education and in their skill-building.
Ladies and Gentlemen,
For meeting all these challenges, India needs capital. Our guests from
the Arab world would be aware that many of the countries they come from
are not only flush with funds, but also have massive capacity to invest
in the infrastructure needs of India. I am happy to convey that a
delegation headed by the Deputy Chairman of the Planning Commission is
visiting Saudi Arabia in early May to begin discussions on these ideas.
Earlier, an official delegation had gone to Oman to discuss prospects
for the creation of a bilateral fund to finance infrastructure projects.
All these efforts are part of an approach to encourage investment from
capital rich countries for infrastructure projects in India.
In this context, it is
also noteworthy that like India, many Arab countries too are about to
reap the talent and energy dividend of a young population whose needs
for employment have to be met. Here, the respective capacities and
capabilities of India and the Arab countries can prove perfectly
complementary. Large projects in infrastructure or in the education and
training sector can be the perfect vehicles for absorbing the budding
talent of our respective young work-forces.
It is also pertinent to mention here that more than 4.5 million Indian
nationals are working in the Arab countries in harmony with the local
environment. Their contributions to their host countries through their
skills and to India through remittances are remarkable. More
importantly, they possess a wealth of experience in infrastructure
construction projects which is invaluable. Monetary remittances are a
tangible asset, but equally important, if not more, is the value of
skills acquired through experience at work.
I am emphasizing these points because, to a large extent, our growth
will depend on how we handle investments in infrastructure and remove
bottlenecks. It is estimated that infrastructure alone will require an
investment of more than 500 billion dollars in the next five years. We
are on track to take speedy and faster decisions regarding investments
in infrastructure such as rail, ports, airports, transport corridors,
shipping, telecom, to name a few. Foreign Direct Investment has to
increase substantially in these sectors to complement domestic
investments. Given the opportunities available today, our friends from
the Arab countries have a broad menu of sectors to choose from. An
expansion of the investment footprint of Arab countries in India is long
overdue and would be most warmly welcomed by government and business
alike.
Friends, we have to take the first steps confidently, yet with care.
Standing here, I see many familiar faces who are used to taking business
decisions in an environment of uncertainty and have tasted success too.
I take this opportunity to assure you that the reform process, which is
approaching the end of its second decade, has now matured. The growth
story of India and the achievements posted thus far provide us an
opportunity to think ahead for an inclusive process that takes into
account the needs and wants of all sections of the population, to enable
us to lift more and more people from below the poverty line. It is a
task that can be and has to be done by public-private partnership. I
look ahead with the confidence that India and the Arab world can work
closely together for a brighter future for our following generations.
I wish the India – Arab Business Conclave successful deliberations and
all success in its endeavours.
Thank you.
New Delhi
18th April 2008 |
