Manama, Jun 6 (BNA) — India had trade relations with Bahrain even during the Indus Valley and Mesopotamia trading days.
Even in the early 20th Century, Bahraini traders went to Bombay to sell their pearls and bring back spices.
It was important to enhance this historic relation. “We considered it important to explore potentialities for enhancing bilateral trade between the two countries.
Manufacturing companies from India can look at Bahrain as a base for downstream manufacturing industries in aluminium, steel and petrochemicals. Bahrain’s proximity to the raw material source is a huge benefit for such businesses, said Dr Esam Fakhro, Chairman of the Bahrain Chamber of Commerce and Industry in an exclusive interview for the Bahrain News Agency.
Asked about the timing of the visit and the importance of such a move at this point in time, the trade chief said, domestically the Indian economy is also beginning to slow down.
“So we thought is the most opportune time to attract those who were considering relocating to other countries.
It makes great sense to look at Bahrain. The cost of fuel in Bahrain, when compared with India, is 20 per cent less. The proximity of raw material – including steel aluminium and hydrocarbons.
It thus makes great sense to companies looking to venture out of the country to setting up base here. It is important to be able to reach them and give the advantages of setting up in Bahrain,” he said.
The fact that this visit was patronised by His Royal Highness the Crown Prince, the Deputy Supreme Commander of the Bahrain Defence Force and the Chairman of the Economic Development Board Prince Salman bin Hamad Al Khalifa, has given a boost to the cooperation between the two nations, said Dr Fakhro.
Looking away from manufacturing and into investments, Dr Fakhro said, “the visit to India was because there are still many firms that might not be fully informed about the investment environment in Bahrain.
So we go with a good sample of home grown Indian expatriate trading community. The BCCI has a Bahrain Indian trading committee.”
Bahrain has over 200 Indian agencies and over 20 partnerships – either as joint ventures or as 100 per cent ownership, he added.
The Bahraini delegation had Indian traders who have their businesses in this country. They talked about not just the environment and climate in Bahrain, but also addressed the problems posed by Indians who talk about the unfortunate events this country has been through.
They gave the impression that Bahrain is back to business as usual. The Lulu Hypermarket for example was a growth story and expansion plans were made known to the Indian investing community. That gives the confidence to the Indian investor to look at Bahrain and to set up base here.
The tangible effects of the India visit, he said, were the two memoranda of understanding signed. One was signed between the Bahrain Chamber of Commerce and Industry (BCCI) and the Indian Chamber of Commerce and Industry (ICCI) to set up a joint business council.
That in itself, should it be put into action through an exchange of meetings – twice annually with one hosted by the BCCI and the other hosted by the ICCI chaired by a member of either organization, are expected to shed light on way and means of exchanging information, boosting trade and looking into potentials for investment in either country, he added.
The second MoU was with the Confederation of Indian Industry (CII). This is expected to result in additional exchange of information. By this assistance can also be provided to Indian industries coming to Bahrain and any prospects coming either way.
“I have also agreed in principle to try and set up a GCC India industry forum to be hosted in Bahrain. At the GCC level, because Bahrain is a member of the GCC business fraternity. This is expected to happen by early 2013. We need to discuss with GCC secretariat,” he said .
The trade chief said that he also met Rajiv Vaishnav, the Vice President of National Association of Software and Services Companies (Nasscom). “ The IT segment in India is well worth $100 billion.
That in itself gives the indication of potentialities that exist and the need for Bahrain to promote its relations with India.
We need to look at attracting companies that are looking to relocate or expand outside India,” he said.
“I almost met Vishal Gakhar the Director General. of Indian Electrical and Electronics Manufacturers’ Association (IEEMA).
There is plenty of potential of hosting electrical and electronic firms in Bahrain. They could use Bahrain as a base to service the Gulf region,” said Dr Fakhro.
Asked about the broader canvas on which the relations could be drawn with the coming together of both the nations, the BCCI chief said, “The business community in the Gulf region has ample fund resources.
Also servicing the Asean and funding businesses in India is quite meaningful provided that there is dialogue along these terms.” Indian institutions need to market India as a gateway.
Bahrain though looks at the GCC as a market. The Indian company coming to Bahrain can set up a 100 pc ownership company.
Bahrain also offers access to finance to companies looking for expansion. An Indian entity setting up base in Bahrain can also benefit from the FTA Bahrain has with the US. The entity can open into the US provided it adds 40 per cent value to the business.
The synergies between both the nations, he said, begins simply with the populations of the two countries – they are both young. Indian economy is service oriented.
Asked about Bahrain’s propensity for new businesses, Dr Fakhro said, Bahrain now is 20 per cent below peaks of pre-events. Retail, education, training, healthcare are among the key areas developing in Bahrain. Appetite of setting up new companies has not stopped.
“We welcome industries with paid up capital of $10 – 2o million to set up in Bahrain,” he said.
Moving into the history of the trade relations India has with Bahrain, Dr Fakhro said, the bilateral trade between Bahrain and India from 2009 to 2010 was close to one billion dollars. The volume of trade between the Gulf countries and India has expanded phenomenally.
In 2010 this trade was worth $100 billion. Going forward it is expected to expand further by 30 per cent to $130 billion or $140 billion.
“We have always marketed Bahrain as a gateway to the GCC region. We always shed light on the importance of the Gulf to be able to attract companies to set up base in Bahrain and look further afield, because of the strategic location of Bahrain and also because of other factors such as, the cosmopolitan atmosphere, the 100 per cent ownership, the FTA with the US, the lowest cost of living in the region, easy repatriation of funds,” he said.
AAM/EM
Source Article from http://www.bna.bh/portal/en/news/512081
