Speeches / Statements
Address by MoS Dr. Shashi Tharoor at the Bahrain-India Society
04/10/2009
Address by Dr. Shashi Tharoor, Minister of State for External Affairs on “Expanding Horizons of Cooperation between India and the GCC” at the Bahrain-India Society, Bahrain, 4th October 2009
Excellencies, distinguished colleagues and friends,
I am extremely happy and indeed delighted to be with you here today addressing this august gathering. I am particularly honoured by the presence of H.E Sheikh Khalid bin Ahmed bin Mohammad Al Khalifa, the Foreign Minister of the Kingdom of Bahrain here today. I also immensely satisfied to see amidst you many of my friends and colleagues, people I have come to know and admire over the years. As many of you know, Bahrain is not new to me as I have been here earlier on couple of occasions and always enjoyed my interactions. However, this is my first visit to a Gulf country in my new capacity as Minister of State for External Affairs of the Government of India. As such this undoubtedly is a special occasion for me.
2. I start by expressing my gratitude to His Excellency Mr. Abdulnabi Alsho’ala, Chairman of Bahrain-India Society, Advisor to the Prime Minister and former Minister of Labour for the Govt of Bahrain for his support and leadership towards building Bahrain-India relations. He is one of our great friends and we appreciate and admire his contribution. I also take this opportunity to appreciate the efforts of Bahrain-India Society which has acted as a pillar of strength in the relations between our two countries and our peoples.
3. I have been asked to talk on the expanding horizons of cooperation between India and the GCC. Let me start by saying that this is a subject which I have come to view as one which holds the greatest potential for development as we already possess a strong base to work with. It is also area of work which is close to my heart and I propose to dedicate my energies to see it prosper and grow.
4. India’s ties with the Gulf region go back 5000 years. Archaeological excavations across the region regularly yield evidence of the Gulf’s intimate maritime and commercial links with our civilizations in Harappa and Mohenjodaro. There is evidence of relations between the Harappan civilisation and the Dilmun society. These ties, which have continued and flourished over centuries, are a testimony to the proximity of the Gulf region to India not only in geographical terms but also in a civilizational and cultural sense. For several hundred years, India provided foodstuffs, textiles and jewellery to the Gulf and, in turn, imported dates and pearls. Indian traders have lived in the Gulf for several centuries, just as Gulf merchants made Kerala and Mumbai their home.
5. Over the last 40 years India has been in the forefront in providing human resources for the development of the Gulf countries: today, Indians are the number one expatriate community in every member country of the GCC. The presence of Indian professionals across the Gulf is also increasing. This is a very healthy and encouraging development that adds a new dimension to our relationship. I am aware that this trend is also very strong in Bahrain with some 300,000 Indians and the presence of large number of Indian professionals in Bahrain.
6. I am convinced about the oneness of our peoples and anything but close and friendly relations would be an aberration. The Gulf region has a special place in India’s external interactions as well as our internal dynamics. For India, the Gulf region is an important source of energy and is home to over 4.5 million Indians. The Gulf’s rich resources and the growing demands of India’s rapidly expanding economy make us partners for our mutual benefit. The Gulf region is a major trading partner and the emergence of Bahrain and the GCC countries as a major investment partner of India is but a matter of time. I deeply appreciate the manner in which Bahrain has emerged as a financial hub and nerve centre. Bahrain has great potential to partner financial cooperation with Indian financial institutions and we should strive towards building more such linkages.
7. I believe most experts agree that India has faced one of the greatest economic challenges of recent times, namely the global financial crisis, admirably. Although our economy also did face considerable stress, it was able to withstand the recessionary trends and emerged as one of the few bright spots in the generally bleak world economic landscape of the past one and half year or so. This reflects the resilience of the Indian economy and its strengths. It is a widely held belief that the Indian economy in the post-financial crisis years will be better placed to accelerate its growth. Our average growth rate during 2004 to 2008 remained 8% plus. Even in the midst of the financial crisis India attained a nearly 6% growth rate and I believe that in the next fiscal year we will again enter a near 8% growth rate. The principal challenge before us is to ensure that we re-attain a high economic growth rate every year for the coming two decades to bring prosperity to the masses at large. Two most important pre-requisites in this regard for us are energy security and development of infrastructure. We also need to expand electric-power production 6 to 7 times between now and 2032 to energize our growth requirements. These challenges call for a robust national effort to obtain the resources required to meet these targets. It is here we see the foundation of India’s new terms of engagement with the Gulf region.
8. As a result of high oil prices and prudent fiscal policies, the countries of the GCC have generated a very high level of investible surpluses. India is held as one of the safest investment destinations in the world, giving some of the best returns on investments. I am happy to note that GCC countries see India as an important investment partner and destination. I personally believe that investments will constitute a new, abiding and mutually beneficial framework for the future growth of our ties.
9. For several years, India has obtained the bulk of its crude requirements from the Gulf. In view of the Gulf’s vast oil reserves and our geographical proximity, I am confident that India and the Gulf region will remain long-term partners in the energy sector. We would like to transform the present buyer-seller relationship into something more substantial and enduring. We would like to encourage mutual investments in each other’s energy sectors. Indian companies could participate in exploration and development projects in the Gulf while companies from GCC countries could invest in India’s down-stream and petro-chemicals sector. An early meeting of our officials and entrepreneurs to discuss cooperation in this sector is desirable.
10. Trade in goods and services between India and the Gulf is expanding rapidly and it exceeded US$ 87 billion in the last fiscal year. The export of foodstuff constitutes an important part of India’s export basket. Today, India is a reliable supplier of food products to the Gulf countries. I thus see India’s requirement for energy security and that of the GCC countries for food security, as opportunities that can work to mutual advantage. We could even think of third country agro-projects where Indian expertise in agriculture could be used to ensure food security for GCC countries.
11. To achieve these goals and to enhance our economic and commercial relationship we now have in place the necessary institutional arrangements. I would like, in this regard, to refer to the India-GCC Framework Agreement for enhancing and developing economic cooperation which was signed in 2004. To liberalize trade relations and to hold discussions on a Free Trade Agreement between India and GCC countries, we have established negotiating teams that have held three rounds of discussions so far. A Free Trade Agreement between us would complement our ongoing and rapidly expanding bilateral economic engagement with individual member countries of the GCC.
12. The India-GCC industrial conference has been playing an important role in strengthening the economic relationship between us. The 3rd India-GCC industrial conference held in 2007 has recommended that an India-GCC FTA should be concluded expeditiously. We are contributing our part to see it materialise and I am happy to see that the 4th India-GCC Industrial Conference will take place in February 2010 in Riyadh, which will further pave the way for our growing cooperation. In a somewhat larger context we shall be organising the 2nd Indo-Arab Investment Conclave in February 2010 in New Delhi and I hope you all will find it convenient to attend and benefit from the cross sectoral mutually beneficial investment opportunities on offer there.
13. We consider that an exchange of visits at the political level is very important to strengthen our relationship with GCC countries. In this regard, I am happy to note that the exchange of visits at the highest level has increased between India and GCC countries. India’s Prime Minister Dr. Manmohan Singh visited Qatar and Oman in November 2008 and our Vice President Mr M. Hamid Ansari visited Kuwait, reflecting the close relations between India and the Gulf region. We also have had the honour of receiving a large number of dignitaries from the Gulf region in recent years. These visits have further strengthened our relationship and have led to very fruitful discussions.
14. From the strategic point of view, India and the GCC share the need for stability and security in the region. The common political and security concerns of India and the GCC translate into efforts for peace, security and stability in the Gulf region and South Asia. The emerging common threat perceptions create further opportunities for GCC-India cooperation in the future. The anti-piracy drive in the region is symbolic of an extensive and functional multilateral cooperation. The critical space for India to play an increasingly pro-active role is widening. It is in this context that India and the GCC States can create many opportunities for mutual benefit.
15. There are newer opportunities and potentials which need to be built upon between the Gulf region and India. Although GCC-India cooperation has expanded, I have a personal conviction that this is not enough. We have to work jointly to expand our cooperation further. Our potential to cooperate is infinite - just like the horizon we can see from your country’s beautiful shores. For this framework we are thankful to Bahrain for its contribution and I hope that it will continue in the future. Bahrain has been one of our greatest supporters and well- wishers in the GCC and India appreciates and honours this support.
Thank you.
Bahrain
October 4, 2009