Opinion A green light for Baghdad
Iraqs reconstruction could be big business for India
Despite the physical proximity of the UAE to India,we had a fairly delayed start to a real business relationship. During my stint at the Embassy in Abu Dhabi as Commercial Counsellor in the mid-90s,A.C. Patankar,then heading CII in Mumbai,happened to be around on a day I was hosting a dinner for some leading businessmen. He accepted a last-minute invitation; that interaction led to the first formal CII delegation to Abu Dhabi. On seeing the ceramic tiles on the walls of the hotel where the delegation was put up,Deepak Banker,the leader of the delegation remarked that it was a land of missed opportunities.
For many years,India has had cordial and friendly relations not only with Iraq but almost all Arab countries. The present dispensation in Baghdad,however,harbours a feeling (not wrongly) that India is not as close to Iraq now as it was to the Saddam regime. This view has been reinforced by the fact that none of our senior leaders have visited Iraq recently,whereas several other world leaders have. The visits have a dual purpose: to demonstrate solidarity and to understand Iraqs requirements for its reconstruction. The lack of any political initiative on our part coupled with the lukewarm response from Indian business and industry in re-entering Iraq are the main reasons behind the thinking of the Iraqi political leadership.
In spite of the fact that Iraq is one of the major sources of Indias oil imports and one of the major destinations of Indias project exports (particularly in construction),Indian companies,of late,have not aggressively explored Iraq. With normalcy fast returning,the primary concern of the Iraqi government is rehabilitating its economy. The country has business opportunities in infrastructure projects,healthcare,consumer products and various services (e.g. banking,IT,telecommunications etc.).As it sits on the worlds third largest oil reserve of at least 115 billion barrels,revenues should never be a problem. The war-ravaged country is also trying to boost its revenues by offering more oil and gas fields to international companies for development. Iraq is also expected to prioritise reconstruction in oil refineries,power plants,hospitals,roads,railways,bridges,etc.,clearly indicating aggressive infrastructural reforms in the next few years. Indian companies are uniquely placed to participate; we should be amongst the first few entrants in a largely untapped market.
The main reason for an inadequate response from Indian business is concern over security in Iraq. Initially the Federation of India Exporters Organisation (FIEO) planned a full-fledged India Pavilion at the November 2009 Baghdad International Trade Fair but later decided against it but in favour of catalogue display,with the tacit acceptance of government agencies. Notwithstanding the recent increase in violence in Iraq,the overall security scenario is improving,and there seems to be more international confidence in its stability.
It will not be easy to re-enter Iraq as some Indian companies well-established in Saddams time may not get a warm welcome from the new regime. Moreover,the countries which partnered with the USA in the Iraq war would like to see some returns on their investment. However,the positive is that Indian industry has historical had commercial links with the country and Indian brands are well-recognised there. (I am told some Chinese businessmen sell China-made generator sets under Indian brand names as these fetch better prices).
In order to take advantage of the opportunities that have been thrown open since beginning of the reconstruction phase of Iraq,both government and business have to be adventurous. Firstly,both governments should raise the level of diplomatic representation to ambassadorial (rather than the current Cda) level. Secondly,MEA should remove the travel advisory against Iraq that was issued in 2004 in the wake of kidnappings of three Indians. The presence of a decent number of Indians in Iraq today (mostly working with the US and European companies) in itself is a mockery of the advisory but its formal cancellation will send positive signals. Thirdly,direct air connectivity between New Delhi and Baghdad will help. At the political level,the next meeting of the Joint Commission should be held immediately after Iraqs January 2010 elections,and should identify specific areas where Indian companies can help in reconstruction. Last but not the least; MEA should be on the look out for an opportunity for a friendly handshake and a meeting between both the Prime Ministers,may be on the side lines of an international gathering.
The onus now is the energetic and vibrant members of the ministerial team,like Anand Sharma and Shashi Tharoor,to create a congenial environment in which Indian business and industry can enter Iraq in an organised and safe manner soon. Future leaders of business delegations to Iraq should not have to repeat the remarks that Deepak Banker made about the UAE.
The writer is a retired IFS officer
express@expressindia.com
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