India eyes new avenues for collaborations to boost economic ties with Algeria

 The Dollar Business Bureau Around 70 Indian companies from various sectors will showcase their products and technological expertise at an international trade fair in Algeria, beginning Tuesday. Commerce Minister Nirmala Sitharaman, who is leading a business delegation in the African county, will inaugurate the India Pavilion along with the Prime Minister of Algeria. The Federation of Indian Chambers of Commerce and Industry (FICCI) with the support of Ministry of Commerce and Industry and Indian embassy in Algeria is organising the India Pavilion at the 48th Algiers International Trade Fair. Exhibitors from 38 countries will participate in the week-long event which will conclude on June 1. India has been given a status of ‘Guest of Honour’ country for the trade fair. Last year, this status was given to the United States of America (USA). A meeting of India-Algeria Joint Commission will also take place on the sidelines of the trade fair. The last meeting was held in 2003. The Indian delegation comprises more than 70 leading companies from sectors like auto, building and construction, food and beverages, agriculture equipment’s, auto components, tyres and engineering goods etc. India’s top brands like Tata Motors, Sonalika, Preet Tractors, L&T, IRCON, C&S Electric, Kohinoor Foods, JK International, Raymonds, Shapoorji Paloonji and Bry Air Ltd will showcase their products and expertise during the fair. The event will provide a platform to Indian companies to showcase their technological, engineering and service capabilities and offer opportunities for business interactions with Algerian counterparts. Though the bilateral trade between the two countries has shown significant increase over a decade, there is a huge potential for further expansion and opening new avenues for collaborations to boost economic engagements, FICCI said in a statement. Algeria is the fourth-largest economy in the African continent after South Africa, Nigeria and Egypt and the second largest in North Africa. The Algerian economy benefits from its vast natural resources. Its hydrocarbon reserves represent around 31% of GDP, more than 95% of exports earnings and 60% of the government’s revenue. Experts say that there is a vast untapped potential for India to enhance exports to that country.  Indian exports to Algeria have doubled since 2009-10 from US$ 572 million to US$ 1.1 billion in 2014-15. The products exported from India include automobiles and spare parts, agricultural and industrial machinery and equipment, pharmaceuticals, mobile phones / accessories, foodstuff (frozen bovine meat, chickpeas, milk powder, rice, spices, cashew nuts) and cosmetic products. At present, Algeria’s economy is growing at 3.8% annually. It is driven by private demand and investment by public enterprises, which offset a downturn in public expenditure and exports, especially oil and gas. There are many untapped and existing opportunities for Indian companies to explore, particularly in areas like hydrocarbons, phosphate and fertilizers, agriculture, agriculture machinery & equipment, automobile components and spare parts, building & construction and engineering.    

May 25, 2015 | 4:31 pm IST.