NEW DELHI (NNN-Bernama) -- The rich oil-producing Arab nations are keen to make investments in India since the returns would be higher than from the US or European Union, a government official said on Wednesday.
A R Ghanshyam, Joint Secretary (Gulf) at the Ministry of External Affairs, said oil producing countries in the Arab world have surplus capital, Press Trust of India (PTI) reported.
"The sovereign funds of these governments hold several trillions of dollars, which are investable surpluses ... This money they want to invest either in China or in India.
"These countries can give rates of return more than the US or European Union," Ghanshyam said.
Speaking at a CII-organised conference here on India's Energy Cooperation with the Gulf countries, he pointed out that in the last seven months; there have been six high-level visits from the UAE to India.
"... they know this is where the money can be spent and this is happening even after the Etisalat Supreme Court decision in which the company lost a US$1 billion almost.
"They still have not given up because they have much more investments in this country, which are still producing profits for them," Ghanshyam said.
UAE's telecom player Etisalat has already announced their exit plans in the wake of Supreme Court cancelling its JV's licences granted in 2008 under then Telecom Minister A Raja.
Etisalat owns about 45 per cent stake in Etisalat DB, a joint venture between Indian player DB Group and the UAE Company, that has 1.67 million subscriber across 15 circles.
"The Middle East, which has the money and educated population, is now looking for creation of employment. They feel that India is the best bet to create employment," Ghanshyam noted.
Gulf countries fulfil about 65 per cent of India's energy needs. -- NNN-BERNAMA
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