Qatar and India should Leverage on Synergistic Bilateral Opportunities

Doha Bank has received license to commence Banking operations in India and as a pre cursor to its entry into Indian Financial Market it hosted a knowledge sharing session on "Opportunities in Qatar and GCC" on 2nd April 2014 at Trident Hotel, Mumbai. The event was attended by H.E. Sheikh Fahad Bin Mohammad Bin Jabor Al-Thani, Chairman of the Board of Directors of Doha Bank, H.E. Sheikh Abdul Rehman Bin Mohammad Bin Jabor Al-Thani, Managing Director of Doha Bank, H.E. Sheikh Abdulla Mohamed Jabor Al-Thani - Member, Board of Directors of Doha Bank and Mr. Ahmed Abdulla Ahmed Al-Khal - Member, Board of Directors of Doha Bank. Dr. R Seetharaman, Doha Bank Group Chief Executive Officer invited the dignitaries. The event was well attended by heads of several Indian corporates, senior bankers and economists.

Speaking at the knowledge sharing session Dr. R. Seetharaman gave insight on Global economy. He said" according to IMF outlook in Jan 2014, Growth in advanced economies would accelerate markedly in 2014 to 2.2%.As a result of the December budget agreement in US, fiscal consolidation impact on growth will be limited in 2014. However severe winter can impact US growth. In many emerging market and developing economies, stronger external demand from advanced economies will lift growth, although domestic weaknesses remain a concern. The emerging economies such as Turkey, Argentina and Ukraine faced political crisis in 1st Quarter of 2014.Growth in China rebounded strongly in the second half of 2013, due to an acceleration in investment however concerns of slower growth and Shadow banking emerged in 1st Quarter of 2014.The Central Banks in some of the emerging economies also raised interest rates. Russia's control over Crimea has resulted in surge in prices of agricultural commodities."


Dr. R. Seetharaman gave his outlook on Indian economy. He said "India's Gross Domestic Product (GDP) grew at the rate of 4.8% during July-September 2013, better than India's growth in April - June 2013 of 4.4%. The economic growth is expected to be below 5% for 2013-2014. India's Wholesale-price index (WPI) rose 4.68% from a year earlier in February 2014 compared with 5.05% in January 2014.India's Consumer-price inflation (CPI) slowed to 8.1% in February 2014 when compared with 8.79% in Jan 2014.India's current account deficit was at $4.2 billion during Oct - Dec 2013 at 4 year low on account of decline in gold imports. Indian stock market surged close to 7% YTD and Indian rupee strengthened below 60 per US$ on huge capital inflows on account of huge capital inflows and on the hopes of a stable government in the forthcoming elections."

Dr. R. Seetharaman gave insights on bilateral trade between GCC - India. He said "GCC - India has increased by 8% in 2012-13 when compared to previous year over $159bn. Imports of GCC from India increased by 13% in 2012-13 when compared to previous year to $51bn.Exports of GCC countries to India increased by 6% in 2012-13 when compared to previous year to $108bn. India and GCC identified sectors like oil and gas, fertiliser and information technology as key areas of cooperation. In the financial year that ended in March 2013, remittances from the GCC to India rose to US$24.93bn from $16.43bn in 2011. GCC will continue to grow in its stature as a major remittance source bloc to India."

Dr. R. Seetharaman explained the bilateral trends between Qatar - India. He said "Qatar is the largest supplier of LNG to India. There is a large market for Qatar's LNG, oil and petrochemical sectors in India. RasGas entered into a 25 year, 7.5 MTA sale and purchase agreement with Petronet and has been supplying the Indian market since 2004. The bilateral trade between the Qatar and India during 2012-13 exceeded US$ 16 bn. In May 2013 Qatar bought a 5% stake in Indian telecoms firm Bharti Airtel Ltd for $1.26bn.In March 2014 India and Qatar agreed to enhance trade ties between them. Many Indian Companies such as L&T, Tata Projects, Voltas, and Punj Llyod have active relationships in the Qatari market. "

Dr. R. Seetharaman gave insights on opportunities in GCC. He said "Projects worth more than US$450bn are expected to be launched in 2014. Qatar, UAE and Kuwait are expected to implement projects worth more than US$70bn, US$85bn and US$70bn respectively in 2014. GCC airports are planning to increase their capacities. India and GCC nations can harness strong energy relationship by extending their partnership to manufacture value added products such as refining, petrochemicals, plastics, fertilizers and pharmaceuticals. GCC is expected to attract US$57bn into petrochemical industry over the next five years. The growing demand for healthcare services coupled with regulatory changes and emphasis on quality healthcare makes the GCC huge potential for the Indian Healthcare companies. Qatar plans to spend more than $1bn in next 5 years to build and equip hospitals and medical cities. Indian economy an ideal source for sourcing and developing agro based value chain in the GCC region. Indian investors in turn have huge opportunities for investment in knowledge and skill based services in GCC, particularly in fields like IT. With greater emphasis on education sector and push for scientific research facilities in the GCC, universities and research institutes from India can use their expertise and the market opportunities to expand in the region. "

In his concluding remarks Dr. R. Seetharaman said Qatar and India should leverage on their synergistic bilateral opportunities.

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