India’s $1 trillion infrastructure drive to lure UAE investors


07/02/2014 09:30 AST

Investors from the UAE are better placed to benefit from the exciting opportunities in India given the strong bilateral economic ties, top tanking officials of Builders’ Association of India (BAI) said on Thursday.

BAI, the apex body of the Indian engineering and construction industry, has more than 13,000 members.

Under the current five-year plan, India eyes a total investment of more than $1 trillion by 2017 in infrastructure development. Such massive investment will boost Indian construction sector’s contribution to the country’s gross domestic product (GDP) in the next few years. Currently, the sector accounts for eight per cent of the GDP, Bhagwan J. Deokar, Chairman, National Convention Committee and past president of BAI, said. Addressing a press conference on the eve of BAI’s 26th convention to be held in Dubai, Deokar said India is among the fastest growing economies in the world. Despite a slowdown in growth rate, which is currently at five per cent, on the back of strong economic fundamentals, India is poised to rebound, providing the construction sector a major fillip while offering overseas investors new opportunities to be part of the country’s amazing growth story, Deokar said.

More than 1,000 delegates from India are gathering at Atlantis, Palm Jumeirah, to discuss the challenges and opportunities in the Indian construction industry at the three-day event. Indian Ambassador to the UAE, T. P. Seetharam, Mirza Hussain Al Sayegh, Deputy Chairman, Oilfields Supply Center and Engr. Mohamed Al Noori, Director, Environmental Centre for Arab Towns at Dubai Municipality, will address the convention.

Dr. J.R. Gangaramani, President and Executive Chairman of Al Fara’a Group, said India requires quality infrastructure. “This simple fact is the long-term driver of the construction sector as infrastructure investments are the most important growth driver for construction companies,” he said.

“While short-term factors will keep the sentiments subdued, over the long term, demand will remain strong. The proposed increase in allocation in the twelfth five-year plan (2012-2017) will translate into a healthy business for construction companies,” Gangaramani said.

With non-oil trade between India and the UAE crossing $75 billion and total trade (including hydrocarbon) reaching $85 billion in 2012, economic ties are growing strong. The growth opportunities and lucrative investment environment in India are poised to attract investors and construction majors from the UAE, said Gangaramani.

India’s construction industry has contributed an estimated Rs6707.78 billion to the national GDP in 2011-12.

The sector is labour-intensive and, including indirect jobs, provides employment to more than 35 million people. Indian Planning Commission has proposed an investment of around $1 trillion in the 12th five-year plan, which is double of that in the Eleventh five-year plan, said C. G. Deochake, chairman of BAI.

“Indian construction industry is about to enter in a golden era where new investments in infrastructure is going to push the industry’s growth to a new level,” said Deochake.

The proposed increase in allocation will translate into a healthy business for construction companies.

For more on this Click Here

Khaleej Times
Economic and Business News
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | News Archive
Most Viewed Companies
Ticker Price Volume
GFH 0.5 1,361,733
QNBK 135 62,706
BKSB 0.14 70,617
DANA 0.62 13,288,208
SABIC 98.09 2,208,800
EEC 18.02 328,623
ALINMA 16.47 22,194,374
Recent News

GCC project awards to stay steady at $117bn this year
The total value of contract awards in the GCC projects market this year is expected to stay steady at $117 billion compared to last year, a report said.

The GCC projects market had a mute

No ban on Qatari riyal exchange, Saudi says
Saudi Arabia’s central bank said on Sunday it has not banned trading in the Qatari riyal after the country severed diplomatic ties with Doha more than two months ago and clarified that visiting Qata

Saudi Arabia’s stocks rise for third day on Al Rajhi gains
Stocks in Saudi Arabia, the region’s biggest equity market, rose for a third day boosted by gains in the kingdom’s largest lender by market capitalisation.

Benchmark indexes in other GCC m

Dana Gas moves to lift court injunction in sukuk case
Dana Gas, a Sharjah-based oil and gas exploration firm, has filed an application with the emirate’s Federal First Instance Court to lift an injunction, protecting it against claims related to its US$

Qatar gains as Gulf stocks find support from robust oil price
The Qatar index rose 0.3% to 9,134 points yesterday, as most stock markets in the Gulf rose modestly, lifted by a rally in oil prices at the end of last week. Three small to mid-sized Saudi Arabian

GulfBase GCC Index
Search By
  • Company Symbol
  • Company Name
  • Mutual Fund Name
  • News Content
Send this page to a friend

Poll

Looking ahead, what change you are more likely to make in investing in your domestic stock market?