Delhi, Baghdad to renew trade ties
New Delhi (AsiaNews/Agencies) In a letter that officially marks the resumption of diplomatic relations between the India and Iraq, Indian Prime Minister Manmohan Singh expressed to his Iraqi counterpart, Ibrahim al-Jaafari, India's readiness to renew trade with Iraq, help in the country's reconstruction and assist it in drafting its new constitution.
In accepting the letter, Mr al-Jaafari praised Mr Singh and India, stressing its important position as a world power, especially in view of the role it might play in a reformed UN Security Council.
For the Indian delegation visiting Iraq, the host country needs foreign assistance in reconstruction. H.S. Meiji, a special adviser to the Federation of Indian Chamber of Commerce and Industry, noted that over 50 Indian companies are eager to satisfy Iraq's crying needs in schools, hospitals, airports, roads, bridges and power plants. Many Indian companies are in fact already finalising their Iraq business strategy. Given its own energy needs, India is keenly interested in obtaining some of Baghdad's oil and gas licence.
Even though many coveted reconstruction contracts have gone to the US multinationals, some experts agree that Iraq is favourably disposed towards Indian businesses and is prepared to offer them a respectable slice of the reconstruction cake.
The bilateral relationship is nothing newIndia and Iraq have always had close trade ties. With
the third largest oil reserves in the world, Iraq was one of India's main oil suppliers and one of is main export markets before the 1990-1991 Gulf war. But with UN sanctions imposed on Iraq in 1991, all this came to an end.
About three million Indians work in the Persian Gulf region1.3 million in Saudi Arabia and 100,000 in Kuwait. Many more left because of political instability but are willing to come back.
Until now India could not trade with Iraq because of the US veto against companies from countries that did not take its side in its 2003 invasion.
After the fall of Saddam, India refused to send troops to Iraq and in December 2003 the US banned Indian companies from bidding on the main reconstruction contracts. The same treatment was applied to companies from countries that took India's stance.
However, US Secretary of State Condoleezza Rice recently called India a "rising economic power" and "a potentially very stabilising and positive force in international politics", a "natural friend" and a "great multi-ethnic democracy".
Ms Rice said India's growing influence was "largely positive", unlike that of China, which does not play by the rules and is potentially "disruptive to the international economy".
For Indian experts, Indo reconstruction projects are estimated to be no less than US$ 100 billion. (PB)
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10/06/2021 12:16
26/08/2021 11:58
