Speech by Her Excellency the President of India Shrimati Pratibha Devisingh Patil at the Dubai Chamber of Commerce and Industry

It gives me immense pleasure to address this distinguished gathering representing leaders of business, trade and investment. Your presence here is testimony to the fact that there is deep interest in expanding India-UAE economic and trade ties.

India has been a dynamic partner of the UAE in the trade and economic fields. For thousands of years, our ancestors sailed across the Arabian Sea and the Indian Ocean to exchange goods, ideas and experiences. This interaction over several millennia has left an indelible mark on our history, providing us a fertile ground for accentuating our traditional links in the modern context. Trade and investment will be the cornerstone of our partnership in the evolving global scenario.

The India-UAE bilateral trade, which was dominated by traditional items such as dates and fish, underwent a sharp change after the discovery of oil in the UAE, with India starting to import a sizeable quantity of oil from the UAE. At the same time, with the emergence of the UAE as a unified entity in 1971, our exports also started growing gradually over the years. The real impetus, however, started after Dubai positioned itself as a regional trading hub by the early 1990s and about the same time, the economic liberalization process started in India. The UAE, a long standing commercial and business hub in the region, has also emerged as the third major re-export centre in the world after Singapore and Hong Kong, which is clearly reflected in our growing trade. India-UAE trade, valued at US$ 180 million per annum in the 1970s, is today in excess of US$ 43 billion making the UAE one of India's leading trading partners.

Both India and the UAE, through their prudent policies before, as well as the stimulus measures after the global economic crisis, have successfully weathered the financial crisis, and are now contributing to the stability of the global economy. It is a matter of some satisfaction that, despite the world economic crisis, although it did affect us to some extent, India has come out as one of the fastest growing economies in the world and is poised to register a GDP growth rate of over 9 percent in the coming years. Our exports are recording impressive growth since November - December 2009, and we have seen a substantial rise in corporate earnings and profit margins. Capital flows and business sentiments have improved tremendously.

As I have already mentioned, India and the UAE are leading trade partners, for which a large part of the credit must go to the persistent efforts of the trading community in both the countries. The visionary policies of the rulers of Dubai in building excellent infrastructure, have transformed this city into a throbbing metropolis and a great hub for international commerce and trade. There is potential for the current level of Indo-UAE trade to be boosted considerably in the coming years. For this we would need to take several measures. The institutional arrangements like the India-UAE Joint Business Council and the India-UAE Joint Commission for Economic, Technical and Scientific Co-operation (JCM) should be reactivated. Both countries should increase their participation in specialized trade fairs and exhibitions. Immense potential also lies for a mutually beneficial partnership in the energy sector and also in the agriculture and food processing sectors. India is one of the leading producers of fruits, despite this only 2 percent our trade is in this area. Both countries must consider more co-operation between their respective oil-industry sectors for establishing a long term relationship in the field of petro-chemical industries, not only in India and the UAE, but in third countries also.

India is a large and growing market with healthy micro-economic fundamentals and robust banking and financial institutions. This makes India one of the most attractive FDI locations in the world. Our plans for expansion of our infrastructure, energy and industrial sectors, presents opportunities for investment. I call upon the investor community from the UAE to participate in the growth story of India. India extends to all of you a hand of partnership, and invites you to participate with us in the new phase of rapid development and prosperity on which we have embarked. Indian companies, on their part, will be able to bring in their technology, manpower as well as capital to partner in the development programme of the UAE.

The large presence of Indian business companies in the UAE can act as a springboard to elevate our economic partnership to new levels. While trade has been the bedrock of our economic partnership, strengthening of the flow of Foreign Direct Investment between the two countries, can be another significant pillar of our relationship. I thank the members of the Dubai Chamber of Commerce and Industry for their immense contribution to promote and strengthen trade and economic links between India and the UAE. I would also like to thank the Chamber for giving me this opportunity to interact with the Dubai business community.

Thank you.