A recent report by the India Brand Equity Foundation (IBEF), Going Global: India Inc in the Arab World, looks at the strategic importance India attaches to its relations with the Arab world. With the region’s proximity to India and the common objectives of peace, stability and security that the two share, the historically established political, strategic and commercial relationships between India and the Arab world have strengthened. India obtains a major portion of its crude oil supplies from the Arab world. Besides, this region qualifies as one of the most important economic partners of India in trade, investment and joint ventures (JVs). Over the years, frequent high-level visits from both sides have led to the consolidation and expansion of bilateral relations.
The increasing number of Indian companies venturing in the Arab world has seen many Indians immigrating to the Arab world. Over 4 million Indians have settled in the Arab world, especially in the UAE, Saudi Arabia, Qatar and Kuwait, repatriating $20 billion to the home country in 2005-06. However, foreign investment from Arab countries in India is significantly below potential. Even the investments from rich countries of the Arab world have been on the lower side. To expedite bilateral trade and increase investments, India aims to sign bilateral investment protection agreements with an increasing number of Arab countries. Discussions are being carried out for negotiating a free trade area (FTA) between the two sides.
The report includes case studies of top Indian companies that have set up their operations in the Arab world. This study was a combination of primary and secondary research, and involved the experiences of 27 Indian companies in the Arab world.
Future
Plans of Indian Companies in the Arab World
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