Business prospects in Iraq

While war-ravaged Iraq grapples with its massive reconstruction phase to rehabilitate its economy ,Indian assistance and participation in this process is hampered for want of a policy decision by the government of India .Not only interaction between both Governments is restricted, private participation has also been seriously held-up due to a 2004 travel advisory against travel to Iraq that has not been formally cancelled even after March 7,2010 Iraq elections that promise positive impact in the transformational process of the country and the region around it . It is rather a time to show India’s solidarity with Iraq and offer our willingness and desire to help them vehemently in their great endeavor.However, some positive minded professionals, businessmen and companies have come together to form India chapter of the India Iraq Economic Cooperation Council. A MoU was signed yesterday in New Delhi for establishing the Council, with a chapter each in Delhi and Baghdad to help businesses on both sides to enhance and diversify economic and commercial relations between the two countries. The chairman of the executive council from the Indian side MS Ramachandran, former Chairman of the Indian oil corporation signed the MoU on behalf of the Indian side where as from the Iraqi side it was signed by Karim Mohammed Ali Al-Obied, Chairman, Samawa Chamber of commerce. To ensure that the newly formed Council’s activities are not impaired, it is a time for the Government to initiate some political moves. Removal of the 2004 advisory should be one of the first such moves which in the long run may lead to restoring of direct air connectivity between New Delhi and Baghdad to facilitate easy travel between both countries. Upgrading the level of diplomatic relations to ambassadorial level will also serve to give a long overdue signal to the business leaders to re-establish our old relationship.Needless to stress that economies of these two countries are supplementary in terms of India’s fast growing energy needs even in the long –run and Indian markets are able to meet the requirements of Iraq’s with regard to food ,infrastructure projects ,healthcare ,consumer products and various services like banking ,IT ,telecommunications .Even more importantly Indian markets offer high-quality products and performance while simultaneously evolving low cost models. With Indian economy progressing rapidly and projected to increase four-fold by the end of next decade ending 2020, this relationship is bound to benefit both the countries immensely.In addition India has a transparent, business friendly environment and a business friendly legal system. India is rated as world-power in IT and enjoys global status in the fields of business and medical education. With Indian side of the “India Iraq Economic Cooperation Council” headed by a former Chairman of the Indian oil corporation ,it hardly needs saying how advantageously this will impact the partnership in the gas and oil sector as Iraq sits on the third largest oil reserves of at least 115 billion barrels. On the occasion of signing the MoU, M S Ramachandran said “India and Iraq have had very flourishing trade and commerce ties that later dipped due to war in Iraq and currently stand confined to only handful of items. But, in contrast, more than 40000 factories in Iraq stand direly in need of India’s participation and support”. It would therefore be in the fitness of things if the government takes early appropriate action rather than hold up the matters in an over cautious approach. Karim Mohammed Ali Al-Obied who is leading the Iraqi delegation said “Though German and other European, US and Chinese firms have already got into the business of reconstruction activity in Iraq; India should not lag behind anymore and should take full advantage of the business opportunities that have been thrown open in the wake of the reconstruction phase of the country.”In order to give impetus to the much needed business activities between the two countries, government should aggressively facilitate the efforts of the “Council” with various ministries and business organization and also take up matters with Iraqi governmental organs and bodies to ensure that Indian business really spreads to different provinces of Iraq to enhance and diversify the volume or trade between both countries which is currently dominated by export of crude oil from Iraq to India.