India offers 'food for energy'

India will reciprocate with food security in return for energy security from Gulf countries, External Affairs Minister Pranab Mukherjee has said.

“Today we are a reliable supplier of food products the Gulf countries and this will only expand in keeping with expansion of Indian agriculture. I thus see India’s requirement for energy security and that of the GCC countries for food security as opportunities that can be leveraged to mutual advantage,” he said in a 30-minute address at the Emirates Centre for Strategic Studies and Research (ECSSR) here on Monday night.

Speaking on “India’s Foreign Policy and India-Gulf Relations: Meeting the Challenges of the 21st Century”, he called for transforming the buyer-seller relationship in the energy sector between India and the GCC states into something more substantial and enduring. This could be done through cross investments with Indian companies participating in exploration and development projects in the Gulf, while Gulf companies could invest in India’s downstream and petrochemical sectors.

Mukherjee said as a result of high oil prices and prudent fiscal policies, the GCC countries had generated extraordinary investible surpluses, were looking beyond their traditional partners in the West and perceived India as an important partner in this regard. “I personally see that investments will constitute a new, abiding and mutually beneficial area in our ties for the foreseeable future,” he added.

The Minister said the foundations of India’s new terms of engagement with the Gulf region lay in the challenge to mobilise $500 billion to meet specific targets in infrastructure development set out in India’s 11th Five Year Plan and the need to expand electric power production six to seven times between now and 2032.

Food, energy security

He said the UAE’s energy resources and investible funds made it a natural partner for India which is seeking precisely these resources to sustain her high growth rates which were over eight per cent per annum across the board and between 9-12 per cent in certain sectors.

In return, India perceived itself as partner in the development of UAE’s services sector and knowledge-based economy.

“I am delighted to see that Dubai is now positioning itself to emerge as a global services provider, while Abu Dhabi is already a major source of investment on the global scene,” he said.

On the changes in profile of Indian community in the Gulf, he said with more professionals beginning to come to the region, today the community comprised only 65 per cent blue collar workers as against 85-90 per cent about 20 years ago.

India and Iran

Touching on Iranian President Ahmedinejad’s recent visit to New Delhi, he reiterated that India saw Iran as a major economic partner, particularly in the area of energy security, considering its geographical location, heritage and natural resources.

Intenational engagement with Iran was important to promote peace and stability in Afghanistan as well as in West Asia, notably in Iraq, Palestine, Syria and Lebanon.

Mukherjee hailed Iran’s effort to harness nuclear energy for peaceful purposes but said that in the light of some concerns pertaining to Iran’s nuclear weapons programme, Teheran should use use IAEA platform to address the issue “without the accompanying cacophony of recrimination and threats of violence”.

Democracy in Pakistan

He welcomed revival of democratic process in Pakistan but remained deeply concerned about the strength of extremist elements in Pakistan which not only posed a danger to India and Afghanistan but were capable of severly wounding the body politic of Pakistan itself.

"Unless countered resolutely, such forces could become a source of grave instability in our region,” he said. India seeks cooperation from Gulf countries to set up vibrant partnerships to combat terrorism and carry forward the cause of development, he added.

Later, Mukherjee had a meeting with the UAE Foreign Minister Shaikh Abdullah Bin Zayed Al Nahyan during which they reviewed the progress made by the UAE-India joint committee, ways to enhance ties in security and military fields, cooperation in addressing the global increase in food prices, Iran’s occupation of three UAE islands, Iran’s nuclear programme issue with the IAEA, the situation in Lebanon, the Middle East peace process, Iraq developments and latest events in the Indian subcontinent. Sheikh Abullah hosted a dinner banquet in honour of the visiting minister.

Bilateral issues, regional security

Mukherjee on Tuesday met General Shaikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi. Shaikh Abdullah Bin Zayed Al Nahyan was also present at the meeting.

Talmiz Ahmad, India's Ambassador to the UAE said the meeting covered substantial ground on bilateral matters and they also reviewed the regional security situation.

Also on Tuesday, the Indian minister was briefed at the Dubai Economic Council (DEC) by Mohammed Abdullah Al Gargawi, Minister of State for Cabinet Affairs, regarding Dubai’s plans for the future and operations of various Dubai-based companies in India.

It was proposed that foreign ministers of both countries will meet annually under the auspices of Indo-UAE joint commission. It was also proposed that the India-GCC political dialogue which normally happens on the sidelines of the UN General Assembly would now be institutionalised and will take place either in New Delhi or any of the Gulf capital.

The Indian minister was also briefed about a private renewable energy project of Masdar group in Abu-Dhabi. Ambassador Ahmed said the Abu Dhabi Cown Prince spoke at length about the traditional bilateral ties and the contribution of the Indian community to the UAE economy, their role in execution of major projects, and the high level of discipline and rejection of criminal activity.