NAMASKAR - VANAKKAM

GOOD MORNING

Mr Srinivasan Swamy-President Madras Chamber of Commerce & Industry, Mr Rawat, Secretary General, ASSOCHAM, Ladies and Gentlemen.

It gives me great pleasure to be here in Chennai and address the Tamil Nadu business leaders. May I take this opportunity to commend the Associated Chamber of Commerce & Industry (ASSOCHAM) for inviting me and successfully organising the Indo-Gulf Economic conference.

This conference is being organized at a very opportune time when there is an all round global economic slow down. I am confident that conference like this will further encourage and motivate the industrialists and economic policy makers to plan well. This conference provides an excellent platform for business leaders; representatives; and renowned experts and specialists to discuss the latest industry trends and issues.

Let me now turn to UAE-India trade and economic relations
The trading links between India and UAE have existed since long. The UAE-India economic and commercial relations are strong and growing fast. The bilateral relations are rapidly diversifying with both sides striving to further strengthen these ties. Today UAE is the third largest trading partner of India and the second largest in terms of India's export.

The total bilateral trade between the two countries for the financial year 2007-2008 was almost USD 30 billion. The current year's figures for the period April 2008 to Feb 2009 is at USD 34 billion which shows an upward trend and increase of 28 % over the same period last year.

UAE is the 10th largest foreign direct investor in India with the total cumulative investments of more than USD 5 billion in India through FDI and FII routes.

The growing Indian economy which has huge market potential is attracting investment from the UAE in various sectors like real estate, infrastructure, aviation, ports, telecom and energy.

The Emirates continues to maintain strong economic and commercial trade relations with India; we are in fact the second largest export market for Indian goods and services.

Besides, Trade and investment, Indians numbering more than 1.5 million are employed in almost every sector of the UAE economy. The Indian community particularly our friends from, South of India have played a major role in the economic development of the UAE.

In our home front, we are eyeing emerging growth areas such as healthcare, education and energy. Today, we are heavily engaged with several university and non-governmental organization for partnerships. This will help promote knowledge transfer while advancing local capacity. Some of the prominent Indian universities have established their own programs and facilities in the UAE.

The UAE remains a favourable destination for global commerce, particularly for manufacturers. World-class facilities, low labour and energy costs, advantageous tax laws and political stability all contribute to maintaining the country's status as a manufacturing haven. The diversification of the national economy towards non-oil growth areas has led to rapid industrial development, which in turn has expanded existing economic segments and continues to create new ones.

UAE economy presents numerous opportunities for the Indian industry to invest in the UAE across all sectors. My organization and the Ministry of Foreign Trade are exerting extra effort to enhance trade relations among our neighbours and the region.

I am pleased to inform you all present here that we have recently opened a Trade and Investment Section in the Embassy in New Delhi. They will be pleased to assist you with information and details on UAE economic and commercial sector.

I would like to thank ASSOCHAM for inviting me to this conference. I wish you all success in your present and future endeavours.

NAMASKAR- VANAKKAM

ENDS