India is under the focus of investors from the six-nation Gulf Cooperation Council (GCC) following further relaxation of Foreign direct investment.
DUBAI: India is under the focus of investors from the six-nation Gulf Cooperation Council (GCC) following further relaxation of Foreign direct investment (FDI) and is expecting inflows worth two billion dollars from them over the next three years, a Kuwait-based investment bank has said.
Global Investment House in a research report said the surplus liquidity in GCC provides sufficient scope for further investments in the real estate sector which is estimated to be around 80 billion dollars in India.
The report said there are several key areas such as ports, power, tourism, roads, gems and jewellery and textiles which are important for Indo-GCC cooperation.
FDI in India has increased from 5.55 billion dollars in 2005 to 7.23 billion dollars at the end of November 2006, an increase of 30.3 per cent, it said.
The GCC countries have invested around 406.3 million dollars, constituting around one per cent of the total FDI received by India.
Among the GCC countries, the UAE is the largest investor in the country, accounting for around 79.0 per cent (321.1 million dollars) of the total investment made by the GCC countries, followed by Bahrain (32.7 million dollars), Oman (24.51 million dollars), Saudi Arabia (19.18 million dollars), Kuwait (8.87 million dollars) and Qatar (0.09 million dollars).
India-GCC trade stood at 19.48 billion dollars in 2005-06, without taking into account the oil trade.
The two-way trade between India and GCC is likely to exceed 24 billion dollars in 2007, the report added.
India has liberalised sectors such as retail, mining, infrastructure and export trading, and is opening new ones such as power trading, processing and warehousing of coffee and rubber to foreign investment.
Strong economic growth on the back of services sector's contribution has helped sustainable economic growth of eight per cent during the last three years.
The Government's thrust towards infrastructure development via public-private partnerships is likely to bolster further investments, it said in the research report.
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