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CHAPTER - 6
India’s Joint Ventures and Its Bilateral Economic
Treaties with Maghreb Countries
India has normal diplomatic relations with all the Maghreb countries. India is
the second most populous country and the world’s most populous democracy and
recently has maintained one of the fastest economic growth rates in the world.1 With
the world’s tenth largest military expenditure, and eleventh largest economy by
nominal rates or fourth largest by purchasing power parity India has potentials to
become an economic power.2
It is India’s growing international influence that
increasingly gives it a more prominent voice in the global affairs especially economic
affairs. India has a long history of economic collaboration with several countries and
is considered a leader of the developing world.
In particular since the early 1990s, India embarked on a process of economic
reform and progressive integration with the global economy that aimed to put it on a
path of rapid and sustained growth. Per capita income became more than double
during the period 1999-2009. The depth of trade and economic relations between
India and the countries of the Maghreb has grown over the years through numerous
joint initiatives, economic agreements and a series of bi-annual summit.
Maghreb region is a geopolitical creation which has an important strategic role
to play in the coming years. It can become a natural, historically formed trade hub.
The geostrategic location of the Maghreb countries has made this region extremely
pivotal in the world. The Maghreb countries lie at the crossroads of European
continent, the African continent and the Asian continent. Therefore, it is also one of
the most convenient routes of transit. It is rich in minerals especially hydrocarbons
and phosphates. As a consumer market it still remains to be exploited. All these
factors lead to increasing interest in Maghreb region by various developed as well as
developing countries. At present, Maghreb region has become a very important region
and India has major geostrategic and economic interests in this region. The future
1 “Indian economic growth rate eases”; BBC; 2007.11.30; accessed 2009.11.21 2 Ruth David (2006.07.13); “India as a global power”. Forbes. Accessed 2009.11.21
203
prospects for the cooperation between Maghreb countries and India in the field of
energy security seem to be very important.
At a time when the economic liberalization and privatization are on the agenda
of both India and the Maghreb countries, it would be interesting to know the nature of
their economic relations since 1990s. For about last two decades, the relations
between India and Maghreb countries have grown and it appears that significant
changes have been underway in recent years. In this chapter we will try to analyse the
economic relation between India and Maghreb countries in the era of liberalization
since the beginning of 1990s. Our focus would be country-wise, and mainly on the
new trends in Indo-Maghreb economic relations in the form of various bilateral
agreements, Memorandum of Understanding (MoU), High level delegation, joint
ventures and contracts that have been negotiated between both at the government and
private levels. In the first place, an account will be given of the economic relations
with Algeria, followed by Egypt and Libya and finally Morocco and Tunisia.
Economic Relations between India and Algeria:
The relationship between India and Algeria was established in the same year
Algeria gained independence i.e. 1962. Since the beginning, the relations between the
two countries have been warm and cordial. Both countries have been consistently
supporting each other on vital issues at bilateral and multilateral levels. Indo-Algerian
relations have been characterized by a convergence of approach issues of international
concern. Active partnership within the NAM and agreement on issues of basic
importance to developing countries has been cementing factors over the year in this
relationship.3 For this purpose many Ministerial-level and official-level visits were
undertaken by both the countries which are as follows:
From India to Algeria:
In 1973, Prime Minister of India Smt. Indira Gandhi visited Algeria.
In 1985, Prime Minister of India Mr. Rajiv Gandhi visited Algeria.
In January 1996, Minister of External States (External Affairs) Shri
R.L. Bhatia visited Algeria.
3 www.iacci.org
204
In September 1997, Minister of External States (External Affairs) Smt.
Kamla Sinha visited Algeria.
In June 2000, Mr. Omar Abdullah, Minister of State for Commerce
accompanied by a 7 member delegation visited Algeria to co-chair the
7th
session of Indo-Algeria Joint Commission Meeting.
In October 2000, External Affairs Minister Shri Jaswant Singh visited
Algeria.
In March 2005, minister of States (External Affairs) visited Algeria.
From Algeria to India:
President Chakli Benjedid visited India in 1982, 1983 and 1987.
Foreign Minister Ahmed Attaf visited India in April 1997.
Minister of Energy and Mines Dr. Youcef Yousft visited India in June
1999.
Minister of Trade and Commerce Mr. Bakhti Helaib visited India in
August 1999.
President Bouteflika visited India as Chief Guest of Republic Day of
India in 2001.
Health Minister Dr. Abderkane Mohammed visited India on
September, 2001.
Bilateral Agreement and MOUs:
Bilateral economic and commercial ties between India and Algeria have been
steadily improving but they are still below potentials. Important Bilateral Treaties and
Agreements between India and Algeria are:
Air services agreement for improving connectivity signed in 2000.
Double Taxation Agreement signed in January 2001to avoid the
double taxation and prevent fiscal evasion with respect to taxes on
income and on capital with a view to promoting economic cooperation
between the two countries.
Phytosanitary Agreement signed in January 2001 to establish
cooperation in the field of quarantine and protection of natural
205
vegetation of respective countries against diseases and destructive
agents.
Veterinary sanitation protocol signed in January 2001 to enhance
cooperation between the veterinary authorities of both countries.
Cultural Exchange Programmme for 2004-05 to strengthen the cultural
relations between the two countries by organizing painting exhibitions,
visit of artists, exchanging reading materials/books etc signed in
October 2003. This agreement was renewed for the period 2008-10.
Agreement between Press Trust of India and Algerian Press Service
signed in October 2003 to promote cooperation and professional
interaction between the two countries.
Agreement on cooperation in Small, Medium Enterprises (SMEs)
signed in October 2003.
A parliamentary Friendship Group with Indian and Algerian Parliament was
formed in April 2008. The government of India is keen to finalize the trade agreement
between the two countries. The drafts for which have been already exchanged. This
trade agreement would facilitate cooperation in trade amongst the two countries. India
is also keenly waiting for the establishment of Indo-Algeria Joint Business Council
between FICCI and Algerian Chamber of Commerce and Industry. Algerian response
is still awaited. Algerian importers are looking for Indian suppliers for those goods
which they are presently importing from China. Indian exporters should be made
aware of this growing opportunity. A 13-member business delegation visited Algeria
under the aegis of CAPEXIL from 21-22 July 2010 to participated in a ‘Buyer-Seller
Meet’.4
Joint Ventures and Projects:
Till 1990s, Indian Railways through IRCON and RITES executed projects in Algeria
mainly relating to the laying of railway lines and providing consultancy. In the light
of the improved situations in Algeria and in view of the vast potential in this country
Indian industries should have greater interaction with Algeria and make use of the
opportunities. Kalpataru of India also executed the construction of 400 KV
transmission line erection project with Sonelgaz Company of Algeria for a stretch of
4 Annual Report of India 2010-11; p46
206
160 km. In 2010, it has also signed a contract with Sonelgaz, Algeria for the turnkey
construction of 220 KV transmission lines of 100 km and 60 kV lines of 120 kms.5
KEC International of India with its Algerian partner Sonelgaz executed the project of
construction of 400 KV transmission line erection project for a stretch of 180 km
worth US$ 22.5 million.6 With the Algerian company Sonelgaz, Engineers India Ltd
of India won three projects in Algeria which are establishment of trading centre for
Sonatrach Engineers; reconstruction of the refinery in Skikda; reconstruction and
modification of refineries in Algiers.7
TCIL of India established the Technical
Consultancy with its Algerian partner Sonelgaz and involved in various projects in
Algeria which are setting up a private telecom network; Erection of OPGW; Erection
of Lashed Cables.8 TCIL of India also ventured a project of design work in the cyber
city of Sidi Abdellah in Algeria with Algerian Ministry of Posts and
Telecommunications.9 Gammon India Limited announced that the Company's Wholly
Owned Subsidiary has been awarded a 220 KV Transmission Line Turnkey Contract
aggregating to US$ 22.5 Million in Algeria.10
Other Indian companies like Gulf Jyoti
International (a subsidiary of Jyoti StructuresLtd.) have secured new projects in power
transmission during 2010.11
Another Indian company Dodsal Engineering and
Construction FZE is executing an LNG train project worth US$ 250 million.12
Few
construction companies like Shapoorji Pallonji and Simplex Infrastructures Ltd are
establishing their offices in Algeria. In pharmaceutical sector, Sun Pharmaceuticals,
Mission Viva Care, Zydus Cadila and Famy Care are having their presence in Algeria.
Projects and Development India Ltd. is providing consultancy in project management
and engineering services for Sonatrach-Oman joint venture for production of urea.
The Algerian government has sought India’s help in developing its space and
Information Technology sectors. The two sides are in touch with each other in this
regard. GAIL of India expressed their interest to participate in a major project on the
anvil, the envisaged Trans-Sahara gas pipeline project linking Nigeria to Algeria and
onwards to the European market. The company also offered pursuing equity in LNG
5 http://www.moneycontrol.com/company-facts/kalpatarupowertransmission/history/KPT 6 http://www.kecrpg.com/press-release/kec-wins-projects-rs-550-crore-12-17-2009 7 http://articles.timesofindia.indiatimes.com/2004-11-05/india/27146571_1_sonatrach-eil-refineries 8 http://findarticles.com/p/articles/mi_m0NVN/is_4_24/ai_112985407/ 9 http://www.business-standard.com/india/news/tcil-forays-into-core-sector-consultancy/227507/ 10 http://www.reuters.com/finance/stocks/GAMM.NS/key-developments?pn=2 11 http://www.gulfjyoti.com/ 12 http://dz.linkedin.com/pub/viswan-ap/17/6b8/831
207
infrastructure and in CNG projects in Algeria for which they are prepared to work
closely with the local agencies. Another company of India ONGC expressed interest
in working jointly with Sonatrach through the two MoUs already signed with them.
The leading up-stream company of India also offered to give training to the Algerian
oil sector personnel in diverse areas covering reservoir management, seismic studies
etc. Indian companies would pursue working with Naftec for identifying prospective
refining projects for participation by Indian companies and offering PMC services etc.
IOC offered to work together with Algerian companies in the areas of Refinery
upgradation, setting up of new refineries, bitumen formulations, consultancy services
pertaining to process units commissioning etc.13
Economic Relation between India and Egypt:
Egypt and India are tied together by a historical long standing close bilateral
relationship based on mutual respect, appreciation of regional and global role as well
as common endeavor to enhance bilateral ties in all fields of economic interest. And
both the governments have been working together for the suitable environment for
greater trade, investment and economic cooperation.
India and Egypt enjoyed an exceptionally close relationship during the Nehru-
Nasser era, and signed a Friendship Treaty in 1955. At that year Egypt under Col
Gamal Abdul Nasser and India under Jawaharlal Nehru became the founders of the
Non-Aligned Movement (NAM). During the 1956 war Indian Prime Minister
Jawaharlal Nehru supported Egypt to the point of threatening to withdraw his country
from the British Commonwealth. In 1967, India also supported Egypt and the Arab
during the Arab-Israeli war.
President Mubarak visited India in 1982, and again in 1983 to attend the NAM
Summit. He also paid a State visit to India on 16-19 November 2008. During this visit
following agreements were signed: Extradition Treaty; Agreement on abolition of visa
requirement for holders of diplomatic, special and official/service passport; MoU on
Cooperation in the field of Health & Medicine; MoU on Cooperation in the
Exploration and Use of Outer Space for peaceful Purposes; MoU on Trade &
13 www.sarkaritel.com; new Delhi; 23 April 2007
208
Technical Cooperation. In 1995 the Jawaharlal Nehru Award for International
Understanding was conferred on President Mubarak.
On the other hand since 1980s there have been four Prime Ministerial visits
from India to Egypt. Prime Minister Rajiv Gandhi visited Egypt in 1985; Prime
Minister P.V. Narasimha Rao visited Egypt in 1995; Prime Minister I.K. Gujral
visited Egypt in 1997; and Dr. Manmohan Singh visited Egypt in 2009. Prime
Minister of India Dr. Manmohan Singh participated in the XV NAM Summit held in
Sharm El-Sheikh in July 2009. The Minister of State for Planning and Science and
Technology visited Cairo to attend the Middle East and North Africa Economic
Conference in November 1996 which afforded opportunities to explore additional
measures of cooperation in economic and technological fields.14
The Egyptian Foreign Minister Mr. Aboul Gheit visited India on 15-16
December, 2006 to attend the 5th
Session of the Joint Commission co-chaired by the
Minister of External Affairs of both India and Egypt. In this Summit five agreements
were signed including the Partnership Agreement; an MoU on bilateral air services;
the work Plan on agricultural Cooperation; the Executive Programme on Cultural
Exchanges; and Executive Programme on Cooperation in the field of Science and
Technology.
Minister of Petroleum and Natural Gas Mr. Murli Deora led a high level
delegation to Egypt on 22-25 April 2007. During the visit he discussed on bilateral
cooperation with Minister for Petroleum of Egypt.
Bilateral Treaties and Agreements:
Traditionally India has been one of Egypt’s most important trading partners in
the Asian Continent. The Indo-Egypt Bilateral Trade Agreement has been operative
since March 1978 and based on the Standard of Most Favour Nation clause involving
free trade in foreign exchange has replaced the earlier Trade Agreement of 1953. The
Indo-Egypt-Yugoslavia Tripartite Agreement under which tariff concession of up to
50 percent were available for 129 commodities, expired on 31st March 1993 and this
agreement has not been renewed. There are several other bilateral trade agreements
that exist between India and Egypt. These agreements are:
14 www.indianembassy.org
209
Agreement on Cultural, Education and scientific Cooperation 1958
Agreement on Technical & Scientific Cooperation 1969
Agreement on avoidance of Double Taxation 1969
Agreement on the establishment of the Joint Commission 1983
Agreement on combating international terrorism and trans-national and
organized crime 1995
Agreement on cooperation in the field of information Technology 1995
Air services Agreement 1997
Agreement for the Promotion & Reciprocal Protection of Investments
1997
Agreement on Tourism Cooperation 1997
MOU on Trade Promotion 1998
MOU for cooperation in the field of agricultural research signed
between ICAR and Agricultural Research Center of the Ministry of
Agriculture and Land of Egypt in 1998.15
Bilateral Investment Protection Agreement; November,2000
The Partnership Agreement 2006
MOU in the field of Micro, Small and Medium Enterprises was signed
on October 2009
MOU on Renewable Energy Cooperation was signed in January 2011.
Joint Commission:
Indo-Egyptian Joint Commission headed by both foreign ministers was
established in September 1983 to promote bilateral cooperation for mutual benefit in
various fields such as agriculture, economy, trade, industry, education, health, culture,
consular affairs, tourism, science and technology.
Joint Business Committee:
A protocol was signed between the Egyptian Federation of the Chamber of
Commerce and Federation of Indian Chamber of Commerce and Industry (FICCI) on
9th
April 1997 for setting up “Joint Business Committee”. Until now there has been
15 www.indembcairo.com
210
only two meetings first in New Delhi in January 1998 and second in Cairo at the year
of 2000, and the 3rd
meeting was to take place in New Delhi in due time.
Joint Business Group:
Business communities in both countries have always been actively engaged
with each other. During the visit of the Prime Minister of India to Egypt in October
1997, Indo-Egypt Joint Business Group was formed at the initiative of Egyptian
Prime Minister. The Joint Business Group comprised nine top Indian businessmen
and eleven Egyptian businessmen. JBC has aims to form new joint ventures and
investment projects between the two countries. The meeting of JBC was held on
January 2002 at Bangalore. This meeting has led to identify the following areas of
cooperation with Egyptian Industry: steel, construction, tractors, agricultural
equipment, pumps and diesel engines, pharmaceuticals, tourism and auto components,
information technology, textiles, biotechnology.
Joint Ventures and Projects:
India is seemingly interested in tapping Egypt’s expertise in various areas.
However, the country’s principal focus is on infrastructure development and desert
agricultural methods. With the deregulation of the financial environment and
liberalization process in Egypt, an increasing number of Indian companies are looking
at Egypt as production base both for the domestic and regional markets. According to
the Egyptian sources, India is the 12th
largest foreign investor in Egypt with a total
investment of approximately US$ 800 million to US$ 1,000 million in close to 40
projects.16
And this amount is expected to rise to US$ 5 billion over the next three
years.17
Indian companies have a strong presence in Egypt. Alexandria Carbon Black
(ACB) was set up in 1994 by Grasim India Ltd (subsidiary of Aditya Birla Group)
with TREMCO and ATC as Egyptian partners which has been the leading successful
joint venture between Indian and Egyptian companies.18
A new Acrylic Fibre Plant
had been set up by Alexandria Fibre Co. of Egypt and the Aditya Birla Group jointly
16 Egypt state information service: Mubarak starts historic visit to India to boost strategic partnership
between the two countries; www.mfa.gov.eg 17 www.desiegypt.com/investment.htm 18 Alexandria Carbon Black Co. SAE (Egypt);
http://www.adityabirla.com/our_companies/international_companies/alexandria_carbon_black.htm
211
in 2006.19
Egypt is a modern country with latest trends in hospitality and it has a
strong infrastructures and India is also contributing through its hotel industry. The
Oberoi Group of India has been managing a hotel and Nile Cruises named Oberoi
Zahra.20
ESSEL of India has set up a joint venture with Mashoor Pack of Egypt for
manufacturing laminated tooth paste tubes for Proctor and Gamble in Egypt.21
ESSAR of India also signed a contract with National Iron and Steel Company of
Egypt worth US$ 30 million for supply of hot briquetted iron (HBI). Joint Ventures
between Asian Paints and SCIB Chemical (Orascom Group) was established in
October 2004. HDFC facilitated the setting up of EDFC (Egyptian Housing
Development Company) by acquiring 10 percent equity and providing technical as
well as management assistances. IFFCO has signed an agreement with Al-Nasr
Mining Co to establish a phosphoric acid plant in Upper Egypt entailing an
investment of over US$ 350 million. Ranbaxy has an Egyptian subsidiary for
manufacturing pharmaceutical formulations. TELCO has tied up with a local private
sector company ETAMCO for assembling pick-ups, trucks and mini buses. Bajaj
Auto and Bajaj Tempo have tied up with ELTRAMCO for assembling two wheelers
and Matador vans respectively. Bajaj Auto dominate the three-wheelers market in
Egypt. Ashok Leyland in collaboration with the Engineering Automobile
Manufacturing Co of Egypt are assembling and selling mini buses in Egypt. Mahindra
& Mahindra was reported to have entered into an agreement with Bavarian Auto
Trading Co. for setting up a CKD assembly unit for utility vehicles and pick-ups in
Egypt. TATA Motors have an office in Egypt and recently they launched their entire
range of vehicles in the Egyptian market. Satyam Mahindra Computers (previously
known as Satyam Computers) and WIPRO have set up its global delivery centers in
Cairo. Marico, and Indian Consumer Goods Company acquired ‘Fiancee’ a hair care
brand from Egypt Ready Group. SBI has a Representative Office in Cairo.
Nile Tex is a 100 percent Indian company manufacturing PVC water-storage
tanks. Dabur India Ltd has started production of its hair oils and other cosmetic
products in a 100 percent owned facility at the Ramadan Industrial City. M/s Auto
Tech Engineering is another 100 percent Indian company manufacturing auto valves.
TATA Exports signed an agreement with El-Nasr TV Co. of Egypt worth US$ 3.5
19 http://www.adityabirla.com/our_companies/international_companies/alexandria_fiber.htm 20 http://www.cruisecritic.co.uk/reviews/cruiseline.cfm?CruiseLineID=133 21 http://groups.google.com/group/4ah3mkdrh6/web/procter-and-gamble-egypt
212
million for supply of TV Electronics components. Reliance Petrochemicals is yet
another important Indian player doing business in Egypt. In 2003, Indian giant
Reliance signed a contract with the Egyptian General Petroleum Corporation (EGPC)
to import 8 shipment of raw oil. In August 2004, the Indian company Gas Authority
of India Ltd.(GAIL) procured 15 percent of the Egyptian Company’s Natural Gas
which deals with marketing and distributing natural gas in Egypt.22
In 2005, OVL
negotiated a 33 percent stake in an offshore block operated by Shell in the north-east
Mediterranean. On November 2005, India Farmers Fertilizers Co-operative Ltd.
(IFFCO) in collaboration with El-Nasar Mining Company (ENMC) launched Indo-
Egyptian Fertilizer Company (IEFC) for setting up a state of the art Phosphoric Acid
Project.23
Gujarat State Petroleum Corporation (GSPC) of Gujarat reported in
December 2006 that it had bagged two exploration blocks in Egypt in partnership
with a Canadian Company. The Oil and Natural Gas Corporation is running
multimillion projects. In March 2007, the Sanmar Group completed acquisition of a
unit of Trust Chemicals of Egypt. In June 2007, South Asian Petrochem Ltd entered
into a shareholders’ agreement with Echem of Egypt to set up a US$ 250 million PET
resin plant in Egypt. In 2008, India’s KEC International Ltd. received its largest order
worth US$ 141.83 million from Egyptian Electricity Transmission Company. The
order was funded through the European Investment Bank and the Egyptian National
Bank. The order included design, supply and construction of power transmission
towers and laying of 196 km of transmission lines in Egypt.24
Kirloskar Brothers have
got an approval for manufacturing diesel engines and irrigation pump sets in Egypt
and have started production. Therefore, Indian companies have given a very good step
in exploiting the business environment in Egypt.
Economic Relation between India and Libya:
Libya is located in northern Africa, bordering the Mediterranean Sea, between
Egypt and Tunisia. With population of 6.46 million, Libyan economy is dependent on
revenues from the hydrocarbon sector which contributes about 95 percent of export
earnings, 25 percent of GDP and 80 percent of government revenues. Libya is an
OPEC member and holds the largest proven oil reserves in Africa. It is one of the
22International relations between Egypt and Asia; www.mfa.gov.eg 23 Egyptian Asian Relations; www.mfa.gov.eg 24 Arab Republic of Egypt; www.mfa.gov.eg
213
richest countries in Africa with a GDP per capita of US$ 14,878.24 in 2010.25
However, most of this wealth does not reach the general population, and this was one
of the key causes of the uprising, together with a reaction to the repressive policies of
the regime. Libya is estimated to have lost two third of the oil output while fighting
between government and rebel forces and international sanctions halted all oil exports
from Africa’s third largest producer. Even after fighting ends, it could take years to
restore full production as facilities have been bombed and foreign oil industry workers
have mostly fled the country.26
The opening up of Libya’s economy to the world market has also meant a
change in attitude towards Arab and African countries. Libya has been moving away
from Arab countries, perhaps because it is still resentful of their lack of support when
it was feeling the weight of the embargo. An instance of this change is its
rapprochement with Israel.27
The other important change is the development of
Libya’s African aspect. Libya which has been facing American sanctions, is broad-
basing its trade and economic engagements with rest of the world. In this process, it
looks at countries like India to fill the technological gap particularly in the
Information Technology sector. With this background, India can play as a very
important partner to promote the economic relation with Libya. In political terms,
Libya is becoming an important influence in Arab and African continents because it
has vast amount of hydrocarbon reserves
Despite being separated by geography, India and Libya enjoy strong bilateral
ties. For India, which is looking for energy equity, Libya can be an important country.
To strengthen India’s relation with the African Union, Libya is the important country
to cement the relation. Being an oil producing country, Libya required manpower in
various sectors. Therefore, India is a in a position to balance the interest of both
countries. India has supported Libya in international forums. India welcomed the UN
Security Council resolution 1506 adopted on September12 2003, lifting sanctions
imposed on Libya.
After 23 long years, the Indian leadership visited Libya, the important and
interesting Maghreb country with a booming economy. External Affairs Minister Mr.
25 Encyclopaedia: Middle East and North Africa 26 www.economywatch.com 27 Rossiiskaya Gazeta; 24 May 2004
214
Pranab Mukherjee visited Libya in 2007 which showed that India is trying to revive
and reaffirm its traditional ties with the Maghreb countries. His visit was too late but
desired. As Asia and Europe are trying to carve out a new agenda, India is also keen
to promote cooperation between Asia and Africa. India and Libya can play a major
role in bringing Asia and Africa closer as Libya is the northern gate for Africa, and
India is an active member seeking to play an essential role in Asia; while former
President of Libya, Muammer Gaddafi also said “the sky is the limit for cooperation
between the two countries.” On his visit he discussed about the oil and petroleum
sectors as well as human resource development with Mr. Gaddafi. In one of the
meeting with businessmen he said, “ India has unlimited interest to promote the
historical friendship relations with Libya, and to broaden the prospects of cooperation
between the two countries especially in the economic, commercial, cultural and joint
investment fields.”28
There has been a series of high level visits between India and
Libya including VVIPs.
From India to Libya:
Prime Minister of India Smt. Indira Gandhi visited in 1984.
Minister of Petroleum and Natural Gas Mr. Murli Deora visited Libya
in January 2007.
External Affairs Minister Shri Pranab Mukherjee visited Libya in May
2007.
Deputy Speaker of Rajya Sabha Shri Rehman Khan visited Libya in
September 2009 to participate the 40th
Anniversary of Al-Fatah
Revolution.
From Libya to India:
Minister for Asian Affairs, Mr. Burrani visited India inMarch 2007.
Minister of Economy, Trade and Investment Mr. Alasawi visited India
in July 2007 on the occasion of 10th
session of Indo-Libya Joint
Commission.
28 Why Pranab’s libya visit is important; www.redifff.com/news/2007
215
Minister of African Affairs, Dr. Abdussalam Treki led the Libyan
delegation which participated in the India-Africa Forum Summit at
New Delhi in April 2008.
Secretary of Administration Committee of Harbours Authority
(Minister of State) Captain Ramadan, visited India in March 2009 for
negotiating the bilateral Shipping Agreement.
Dr. Treki as UNGA President visited India in 2010
Libyan Foreign Minister Mr. Abdelati al Obeidi visited India in July
2011.
Bilateral Treaties and Agreements:
India and Libya has strong bilateral economic relations. In 1978, the two
countries signed a framework agreement on “Protocol on Industrial, Economic and
Scientific Cooperation”. This was the beginning of consultations on economic
cooperation between the two countries under Indo-Libyan Joint Commission (ILJC).
Till now total of ten sessions of ILJC have been held between two countries. Both
countries have linked different important treaties and agreements.
Avoidance of Double Taxation and Prevention of Fiscal Evasion
(1981).
Agreement for Cooperation in the field of Health and Medical Sciences
(1983).
Agreement on Economic Cooperation (1985).
Cultural Agreement (1985).
Bilateral Investment Promotion and Protection Agreement (BIPPA)
(2007).
Cultural Cooperation Agreement (2007).
There is no direct flight from India to Libya. Therefore, India is studying
Libya’s proposal to link New Delhi and Tripoli by direct flights to foster closer
relationship and both sides have agreed to initiate talk in this direction. But it would
depend on the economic feasibility of the operation.
216
Joint Ventures and Projects:
The economic cooperation between the two countries spans the entire
spectrum of commercial activities. During the oil boom years, several public and
private sector Indian companies participated in construction and development
activities in Libya. Indian companies especially in hydrocarbon, power, construction
and IT sector have several ongoing projects in Libya. Indian oil majors – Indian Oil,
Oil India and ONGC Videsh (OVL) are increasingly involving themselves with
Libyan hydrocarbon sector both in Upstream as well as downstream sectors. BHEL
has successfully completed executions of prestigious Western Mountain Gas Turbine
Power Project.29
I-flex Solutions is implementing a project on core banking solutions
with the Central Bank of Libya and other five main banks.30
Also over the past
decades, Indian companies have executed several projects. These included building
hospitals, houses, schools, roads, power plants, airports, dams, transmission lines etc.
The presence of Indian companies in Libya had risen significantly in the last five
years including major PSUs like BHEL, OVL, IOC, Oil India and private companies
Punj Llyod, Unitech Ltd, KEC International, Dastur Engineering, Shapoorji Pallonji
International, SECON Pvt. Ltd., Global Steel ltd (Ispat Group co.), NIIT, Sun Pharma,
Simplex Projects and Simplex Infrastructure Ltd.
Libya has proposed that India should participate in the joint operation of
existing industries as well as investments in industrial projects and has submitted a list
of projects to the Indian side in this regard. In a significant development, India and
Libya have agreed to intensify cooperation in power, oil and gas (hydrocarbons) and
infrastructure sectors including railways. The Libyan side has invited Indian experts
to participate in its future power projects and also to participate along with
international companies in tenders floated from time to time by the Railway Board of
Libya. In the oil and gas sector, Libya has agreed to expedite approvals to enable
ONGC Videsh to join exploration projects in Libya. In august 2002, India’s
exploration major Oil and Natural Gas Corporation (ONGC), through its overseas arm
ONGC Videsh signed an agreement with the Turkish Petroleum Overseas Company
29 http://www.ibef.org/download/bharat_heavy_electricals_4dec.pdf 30 http://www.computerworld.com/s/article/98380/Banks_moving_to_change_out_core_systems
217
to buy 49 percent stake in two on-land oil and gas exploration blocks in Libya.31
Simplex Projects Ltd., a leading Civil Engineering and Construction Company, has
been awarded a contract worth Rs 2,000 crore for development of a housing project in
Libya. The project includes constructions of public building, schools, health centers,
mosque, community hall and shopping complex. The scope of work of these projects
also include construction of complete infrastructure like roads, drainage and sewage
systems.32
India’s strength in the areas of pharmaceutical, electronics, information and
technology, biotechnology, textiles, leather, consumer goods and agriculture are well
recognized. Indian organizations can supply complete plant and equipment in the
power generation and transmission, rail transport infrastructure, cement and
construction sectors. In addition there is scope for providing Indian consultancy and
managerial services for running industrial units, banks and other financial institutions.
The Libyan side reciprocated by expressing its desire to have closer ties with India
especially in these sectors.
Economic Relation between India and Morocco:
The geographical advantages make Morocco a strategic platform from an
economic standpoint. Morocco under global market economy is a significant market
opportunity for foreign and Indian companies and investors. In fact, Morocco has
implemented several economic reforms since 1980s to bolster the country’s
macroeconomic balance and accelerate its integration into the world market place.
India and Morocco have enjoyed cordial and friendly relations and over the
years bilateral relations have witnessed significant depth and growth. Both countries
have negotiated the cultural exchange programme to implement the bilateral cultural
agreement and many programmes are sponsored by Indian Council of Cultural
Relations (ICCR) to promote the Indian culture.33
Morocco is fully under Western
influence. On the one hand it has an agreement for preferential treatment with the EU
and on the other side it has signed an agreement with the US for the creation of a free
trade zone. Moreover, these trade agreements of Morocco offers Indian companies
31 http://www.ongcvidesh.com/NewsContent.aspx?ID=37&AspxAutoDetectCookieSupport=1 9
oct,2002 32 Simplex projects wins Rs2000 cr housing project in Libya; www.financialexpress.com; 9 jan,2009 33 www.cultureholidays.com
218
greater access to markets of Morocco, EU and US. In addition, Morocco also
maintains a number of trade agreements with other African and Arab countries
providing a ready platform for Indian companies for penetrating markets throughout
the region.
Morocco and India established diplomatic relations in 1957, a year after the
recognition of Morocco’s independence. Over the past 50 years the political relations
between Morocco and India have been developing steadily and smoothly. The two
countries share close or similar views on many international issues. Morocco and
India have steadily expanded excellent relationship in various fields. Former Prime
Minister of India Mr. Atal Bihari Vajpayee visited Rabat in 1999, the first ever Indian
Prime Minister to visit Morocco paving the way for developing closer and intense
relations. From Morocco, former Prime Minister Abderrehman Youssoufi visited
India in February 2000 and King Mohammed VI in 2001, both contributing
significantly towards reaching strategic partnership. King Mohammed VI also paid a
private visit to India in October 2003 and again in December 2005 which is widely
regarded in Morocco as Indication of his fondness for India. Prime Minister Driss
Jettou led a large delegation of 7-cabinet ministers, several senior officials and media
persons to India from 6-9 December 2004. The focus of the visit was to intensify the
economic and trade relations with India. Visits at Ministerial and official level taken
place regularly between the two countries.
Shri E. Ahamed, Minister of State for External Affairs visited Morocco from
23-26 May 2005 and had discussed wide range of issues of mutual interest with the
Moroccan Minister of State for Foreign Affairs Mr. Taieb Fassi Fihri. Shri Syed
Shahabuddin, Special Envoy of India visited Morocco in June 2005 and met the Prime
Minister Driss Jettou and Foreign Minister Mohammed Benaissa and sought
Morocco’s support for India’s candidature for the Permanent Membership of the UN
Security Council. Minister of State for Urban Employment and Poverty Alleviation,
Kumari Selja visited Morocco from 11-13 January 2006. She met Moroccan Minister
of Housing and Urbanization Mr. Toufiq Hjira and signed a Cooperation Agreement
in Low Cost Social Housing. Shri Ashwani Kumar, Minister of State for Industry
visited Morocco from 7-9 December 2006 leading a business delegation represented
by ASSOCHAM and was the Guest of Honour at the International Investment
Conference. He led a business delegation represented by ASSOCHAM and delivered
219
key-note address on ‘Education, Training and Employment – the Challenges of
Investment’. In his address, he highlighted India’s success story of economic
development in recent years. During the conference, Tata Consultancy Services (TCS)
signed an agreement with Moroccan government to set up a Training Centre in
Morocco. A business delegation of ASSOCHAM that accompanied Minister of State
(Industry) put forth a proposal to the Moroccan leaders to mount an exclusive Indian
exhibition in Morocco to promote Indian products and services.
Minister of State for Industry, Shri Ashwani Kumar visited Morocco again
from 23-26 May 2007 to participate in the Symposium on ‘South-South Cooperation
in the fields of energy and industry – a challenges and opportunities’. Minister of
Chemicals, Fertilizers and Steel Shri Ram Vilas Paswan visited Morocco from 24-26
March 2008. During the visit he met the Prime Minister, the Minister of Energy &
Mines and the Minister of Commerce of Morocco and discussed about the joint
research for mining of phosphates and steel; setting up of industries in Morocco; and
boosting trade exchanges. In October 2010, Minister of State for Commerce and
Industry Shri Jyotiraditya Scindia visited Morocco and discussed various aspects of
bilateral trade and commerce. He also participated in the World Economic Forum for
Middle East and North Africa held in the city of Marrakech.
From the Moroccan side, the Foreign Minister of Morocco, Mohammed
Benaissa visited India from 25-27 June 2006 and met Indian Prime Minister, Minister
of State (External Affairs) and Minister of Agriculture as well as the Minister of
Culture. The two sides held discussions on various issues of mutual interest.
Moroccan Parliamentary delegation led by Abdelwahed Radi, President of the House
of Representative (Lower House of Moroccan Parliament) visited India from 27th
November to 1st December 2006. Mrs Nouzha Chekrouni, the then Minister of
Delegates to the Minister of Foreign Affairs and Cooperation visited India to
participate in the Satyagraha Conference in January 2007 and Mr. Omar Hilale,
Secretary General of Ministry of Foreign Affairs and Cooperation visited India in
February 2008. Minister of State for Foreign Affairs Dr. Mohammed Ouzzine visited
India in February 2010 to participate in the “2nd
India Arab Investment Projects
Conclave” organized by FICCI in New Delhi.
220
Bilateral Treaties and Agreements:
Morocco maintains good economic relations with India which have witnessed
an improvement of bilateral trade which has expanded in the past few years mainly
after the visit of His Majesty King Mohammed VI to India during the year 2001. To
strengthen and fortify the economic relations, India and Morocco has shaped two
important institutional infrastructures:
A. Indo-Moroccan Business Council (MIJBC): The Morocco-Indian Joint
Business council was set up on February 2000 to help promote trade between
the two countries, contribute to industrial and technological collaboration
between their enterprises and economic institutions. The Council has proved
to be a useful mechanism for interaction between the Moroccan and Indian
companies. The MIJBC has held three meetings New Delhi (February 2001);
Casablanca (June 2001) and New Delhi (December, 2004). The fourth session
of the Council was scheduled to be held in Morocco.
B. Indo-Moroccan Joint Commission (MIJC): In virtue of the Indo-Moroccan
Trade Agreement of 1981, a Joint Commission was established consisting of
representatives of the two countries to ensure the execution and smooth
working of this Agreement. Since its establishment, the Joint Commission has
held three sessions at Rabat (May 1985); New Delhi (July 1995) and Rabat
(January 2001). The fourth session of Joint Commission is scheduled to be
held in New Delhi and proposes to further strengthen the bond between the
two countries in terms of trade and business opportunities.
Following bilateral agreements and Memorandum of Understanding (MoU) exist
between India and Morocco:
Trade Agreement, 26-09-1960;
Trade Agreement, 03-08-1963;
Trade Agreement, 17-11-1981;
Agreement on Economic and Technical Cooperation, 20-11-1981;
Cultural and Scientific Cooperation Accord, 12-01-1983;
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Mutual Cooperation Agreement between the Moroccan Export
Promotion Center (CMPE) and the Federation of Indian Export
Organizations (FIEO), 22-04-1996;
MOU on regular Consultations between the MAEC of Morocco and
the MEA of India, 25-06-1998;
Convention for the Avoidance of Double Taxation and the Prevention
of Fiscal Evasion with Respect to Taxes on Income, 30-10-1998;
Agreement concerning the Promotion and Protection of Investments,
13-02-1999;
Tourism Cooperation Agreement, 13-02-1999;
Agreement for Cooperation between Maghreb Arab Press (MAP) and
Press Trust of India (PTI), 13-02-1999;
Agreement for Cooperation in the fields of Merchant Shipping and
Maritime, 22-02-2000;
Agreement for Cooperation in the field of Energy and Mines, 22-02-
2000;
Agreement for Cooperation between RTM (Moroccan Radio & TV)
and Doordarshan TV, 22-02-2000;
MOU between CGEM (General Confederation for Moroccan
Enterprises) and CII (Confederation of Indian Industry) for setting up a
joint Business Council, 22-02-2000;
MOU between APEBI (Moroccan Federation of Information
Technologies, Telecommunications and Off-shoring) and NASSCOM
(the trade body of the IT/BPO industry in India), 22-02-2000;
Agreement on Plant Protection and Plant Quarantine, 27-02-2001;
Agreement on Veterinary Sanitation, 27-02-2001;
MOU in the field of Geology and Mines, 27-02-2001;
MOU on Mutual Cooperation between the Moroccan MAEC and the
Foreign Service Institute, 09-01-2004;
Air Services Agreement, December 2004;
MOU in the field of Agriculture Research and Education, December
2004;
MOU for Cooperation in Power Sector, December 2004;
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MOU on Bilateral Cooperation in Housing Sector, January 200634
Joint Ventures and Projects:
For long India has been one of the major markets for Moroccan phosphate and
its derivatives. Indian dependence of agriculture is on imported raw materials for
production of phosphoric fertilizers. The government encourages Indian companies to
establish joint ventures for production of fertilizers and related products. The joint
venture facilitates the company with buy back arrangement in other countries, which
have reserves of rock phosphates. This sector has tremendous potential of growth
working in cooperation with Morocco. Consequently, fertilizer industry in India has
adopted a strategy to increase fertilizer production through.35
A renowned Moroccan Group, Office Cherifien Des Phosphates (OCP Group)
continues to sustain healthy relations with its Indian partners. The first Indian joint
venture in Morocco called IMACID was set up in 1999 to produce phosphoric acid.
The plant has been located at Jorf Lasfar. The initial joint venture partners were M/s.
Chambal Chemicals & Fertilizers Ltd of the Birla Group from India and Office
Cherifien des Phosphates (OCP) on the Moroccan side. In 2005, Tata Chemicals Ltd.
joined IMACID project as third and equal partner. This plant produces about 4,
30,000 MT per annum of phosphoric acid and nearly all of which is imported by
India. On the other hand, in 2002 Moroccan Phosphate Organization (OCP) and Zuari
Chambal of the Birla Group purchased 74 percent shares of Paradeep Phosphates Ltd.
of Orissa in India. The presence of both Birla Group and Tata Group in Morocco in
phosphate sector opens the doors to expand business opportunities in other sectors in
the future.
The Kingdom which has very strong economic cooperation with India in the
field of phosphates reiterates its call on Indian companies for investing in new
economic sectors from automobile to agriculture machinery and agro-industry, power
to tourism and IT services to pharmaceutics. Furthermore, Morocco offers a rich and
widely diversified potential which gives Indian companies the opportunity to use it as
34 www.moroccoembassyin.org 35 www.moroccanamericantrade.com
223
the gateway for trade with the EU, the US, the Mediterranean countries as well as
Africa and the Arab world.
Among other business activities, Tata Motors through HISPANO Maroc
Company is producing bus bodies in Casablanca. M/s NIIT has set up its training
centre in Casablanca on 5 November 2002 in collaboration with a local company M/s
Entalik. Ranbaxy International is in the process of expanding its presence in the
country. M/s Ranbaxy has set up a representative office in Casablanca since July 2005
to market its products and to explore joint venture possibilities. Tata Consultancy
Services (TCS) has signed an agreement with the Moroccan government to set up an
off-shoring delivery centre in Casablanca in 2007. R. J. Corp of India has taken over
Pepsi’s operations in Morocco since the beginning of 2011. Gujarat Flourochemicals
have signed an MoU with a Moroccan partner for mining and processing of fluorosis
acid in Morocco.
Indian exporter participated in trade fairs and industry exhibitions in Morocco
regularly. Indian Industry and business associations e.g. CII, FICCI and ASSOCHAM
have institutional arrangements with Moroccan industry and business associations.
The first FMB Africa Fertilizer Conference and Exhibition was held in Marrakech by
the FMB Group in conjunction with the OCP Group from April 7-9, 2010. Ten Indian
companies headed by CHEMEXCIL, Mumbai participated in this Exhibition. The
fifth Edition of the international Agricultural Fair was held in the city of Meknes from
April 28 to May 2, 2010. This event was jointly organized by the Moroccan Ministry
of Agriculture and the Association of Moroccan International Agricultural Fairs.
TAFE, Escort India Ltd. and Mahindra participated in this event along with some
other Indian companies. A team from Gems & Jewellery Export Promotion Council
of India visited Casablanca on June 21-22, 2010 to create awareness among the
Moroccan businessmen and importers about the Indian Gems & Jewellery Industry.
Subodh Bhargava, former President of CII and Chairman of TATA
Communications Ltd said that bilateral relationship needs to be elevated to a higher
trajectory and new areas of trade needs to be explored apart from the traditional trade
areas of commerce. He added that CII will constitute a Task Force for India Morocco
Economic Cooperation to accelerate bilateral economic relations between both the
224
countries. This Joint Task Force will comprise of representatives from the government
and the industry.36
Economic Relation between India and Tunisia:
Tunisia has been a hub of trade between Africa and Europe. Over the past
decade Tunisia has leaned toward the European Union to a large extent due to its
traditionally close ties with France and to the proximity and economic dynamics of
this economic zone. These relations have furthermore grown even closer due to the
agreement on the creation of a free trade zone between Tunisia and the EU which
anticipates the elimination of part of the trade barriers and which will become fully
operational in 2008. Furthermore, Tunisia has intensified its relations with the US so
that, together with Morocco, it constitutes one of the US’s major political-military
allies in Maghreb Region.37
Therefore Tunisia is highly integrated in the foreign
relations of both the EU and US.
In contrast, relations between India and Tunisia have been friendly and free of
discord. The diplomatic relations between India and Tunisia is more than fifty years
old. Tunisian leaders acknowledge with appreciation the strong support that India
extended to it in its struggle for freedom. At the international level, the two countries
share common principles and have similar approach in many issues. At the bilateral
level, a lot has been done but the path is still long because the ambitions and the
perspectives are very big.
Notable among the exchange of visits in the past were those of former Prime
Minister Smt Indira Gandhi in 1983, followed by former Prime Minister Narasimha
Rao in 1992. Former Prime Minister I. K. Gujral paid a visit to Tunisia in 1999.
However from the Tunisian side although there have been several ministerial visits
but no VVIP visit has taken place so far.
There is a Joint Commission at the Ministerial level. A mechanism for Foreign
Bilateral Consultation exists between the two countries. In addition there are Joint
Working Groups which have been meeting quite regularly. We have several
agreements and MoU in many fields. This is the legal and regulatory framework.
36 www.dayafterindia.com/detail.php 37 Political-economic relations between Russia and North Africa; www.minprom.gov.ru; 28.10.2009
225
Bilateral Agreements and MoUs:
Several agreements have been signed between India and Tunisia which includes:
Indo-Tunisian Trade Agreement (1960)
Agreement on Friendship and Technical, Economic and Scientific
Cooperation (1965)
Cultural Agreement (1969)
Agreement on Trade and Economic Cooperation (1994)
Agreement in Scientific and Technological Cooperation (1995)
Extradition Treaty (2000)
Protocol of Cooperation between Diplomatic Institutes of the two countries
(2002)
Agreement in the field of Small and Medium Enterprises (2007)
Air Services Agreement (2007)
Besides these agreements Indian government also signed various Memorandum of
Understanding (MoUs) with the government of Tunisia. The MoUs include those on
utilization of nuclear energy for peaceful purposes in 1997; on Agriculture in 2000;
on Tourism in 2000; and on Cooperation in Communication and Information
Technology in 2004. Several agreements have an action plan which must be
implemented into actions. For some agreements, achievements are satisfactory. The
scope of cooperation between the two nations is large and there are important
opportunities, but opportunities do not wait. Eagerness is needed like china.
Joint Ventures and Projects:
Indian and Tunisian business circles have a lot of partnership opportunities
because Tunisia is a doorstep of markets of more than 700 million consumers of EU.
It is a platform to three huge markets: the Maghreb, the Sub-Saharan and the
European market. On January 1, 2008, Tunisia became the first Mediterranean
country to implement a free trade zone with the EU which means that import and
exports are tax free.
There is only one Indian Joint Venture in Tunisia “Tunisia-India Fertilizer SA
(TIFERT)” launched in 2006 for manufacturing Phosphoric Acid. 30 percent shares of
226
this project are distributed equally between two Indian companies Coromandel
Fertilizers Ltd and the Gujarat State Fertilizers Ltd. While the remaining 70 percent
held by Tunisian enterprise. And the entire production is to be shared equally by the
two Indian partners. 38
Moreover, few Indian companies have presence in Tunisia. Bharat Earth
Movers Ltd. (BEML), Bangalore has been supplying heavy duty dumpers to the
phosphate mines of CPG (Tunisian company) for the last five-six years. KEC
International Ltd., Mumbai has been awarded a contract for construction of 600 km
225KV transmission line worth Rs 200 crore between Libya and Tunisia. M/S Jyothi
Structures is presently engaged in supply and erection of electric transmission lines
worth US$ 73 million. Kudremukh Iron Ore Ltd. is participating in the El Fouladh
International tender for supply of 50,000 meter iron pellets. Telco is in an advanced
stage of concluding an agreement with Dalmas, the motor division of the El Mzabi
Group of companies for appointing them as their agent in Tunisia as well as setting up
of an assembly plant for light commercial vehicles. Sanmar Footwear Ltd., Chennai
has selected a local Tunisian shoe company for manufacturing shoes for the British
market. This is on an experimental basis and if it succeeds, the company plans to set
up a joint venture. The company is also keen on setting up a textiles joint venture in
Tunisia for the European market.
The state monopoly for import of tobacco in Tunisia, Regie Nationale des
tabacs et des Allumettes (RNTA), decided to import 400 tonnes of tobacco from Best
India Group, Guntur against the tender for June 1999.
Also Tunisian authorities are holding discussions with TISCO and GSFC to
set up a fertilizer joint venture in Tunisia. BHEL too is proposing to set up “solar
energy” projects in Tunisia. One of the key reasons for Tunisia’s recently acquired
economic prosperity is the success of various schemes set up to attract investment e.g.
investment guarantee schemes, schemes for suspension of double taxation, duty free
access for industrial products, preferential access for agricultural products etc.
Tunisia’s economic prosperity is being fostered by the combined effects of large scale
privatization, liberalization and diversification.39
38 http://www.indiainbusiness.nic.in/industry-infrastructure/industrial-sectors/Fertilizers.htm 39 Country profile-Tunisia; www.iacci.org
227
According to the new reports, Tunisia is keen to have joint ventures with
Indian hospitals for setting up offshore hospitals in Tunisia which would cater to
European patients. A 3-member Tunisian Pharma delegation consisting of chemist
inspectors was on a 14 day visit (8-21 April, 2006) to India. These inspectors also
inspected bulk drug facilities in Hyderabad for supplying key ingredients to 18 drug
manufacturers in Tunisia. Indian drug makers led by Ranbaxy, Cipla and Hetero
Drugs are exploring opportunities for supplying drug ingredients and for setting up
manufacturing plant in Tunisia, which will provide customs duty free access to the
EU markets due to Tunisia’s FTA with the EU.40
India has an outstanding scientific
and technological expertise in many areas and this is known worldwide. So more
priority can be given in cooperation and technology transfer from India to Tunisia
especially in the fields of Biotechnology, Pharmaceuticals, Computing Information
Technology and communication etc.
The first Indo-Tunisia Joint Committee meeting was held in New Delhi on 8th
April 2008. The meeting was convened in order to initiate the cooperation agreement
in the field of small and medium sized Enterprises signed between India and Tunisia.
The Tunisian side evinced keen interest in various Micro, Small and Medium
Enterprises (MSMEs) in India, especially sharing of experience and technology in the
field of garments and textiles, electro-mechanical industries, food processing
industries and information technology. Besides cooperation in the area of incubators
and BPO, technical support to SMEs, Institutional mechanism for providing credit to
SMEs etc were also discussed. The Indian side identified various possible areas of
cooperation with Tunisia. These include capacity building for formulation of
industrial development policy and institutional framework for SMEs in Tunisia based
on local resources; industrial potential surveys and feasibility studies to identify thrust
areas and opportunities for MSMEs in Tunisia; entrepreneurship development/skills
training and setting up of vocational training centre.41
40 Commercial and economic report tunisia for april 2006; www.tradeindia.com 41 India-Tunisia in SME Cooperation; www.diplomatist.com