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CHAPTER - 6

India’s Joint Ventures and Its Bilateral Economic

Treaties with Maghreb Countries

India has normal diplomatic relations with all the Maghreb countries. India is

the second most populous country and the world’s most populous democracy and

recently has maintained one of the fastest economic growth rates in the world.1 With

the world’s tenth largest military expenditure, and eleventh largest economy by

nominal rates or fourth largest by purchasing power parity India has potentials to

become an economic power.2

It is India’s growing international influence that

increasingly gives it a more prominent voice in the global affairs especially economic

affairs. India has a long history of economic collaboration with several countries and

is considered a leader of the developing world.

In particular since the early 1990s, India embarked on a process of economic

reform and progressive integration with the global economy that aimed to put it on a

path of rapid and sustained growth. Per capita income became more than double

during the period 1999-2009. The depth of trade and economic relations between

India and the countries of the Maghreb has grown over the years through numerous

joint initiatives, economic agreements and a series of bi-annual summit.

Maghreb region is a geopolitical creation which has an important strategic role

to play in the coming years. It can become a natural, historically formed trade hub.

The geostrategic location of the Maghreb countries has made this region extremely

pivotal in the world. The Maghreb countries lie at the crossroads of European

continent, the African continent and the Asian continent. Therefore, it is also one of

the most convenient routes of transit. It is rich in minerals especially hydrocarbons

and phosphates. As a consumer market it still remains to be exploited. All these

factors lead to increasing interest in Maghreb region by various developed as well as

developing countries. At present, Maghreb region has become a very important region

and India has major geostrategic and economic interests in this region. The future

1 “Indian economic growth rate eases”; BBC; 2007.11.30; accessed 2009.11.21 2 Ruth David (2006.07.13); “India as a global power”. Forbes. Accessed 2009.11.21

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prospects for the cooperation between Maghreb countries and India in the field of

energy security seem to be very important.

At a time when the economic liberalization and privatization are on the agenda

of both India and the Maghreb countries, it would be interesting to know the nature of

their economic relations since 1990s. For about last two decades, the relations

between India and Maghreb countries have grown and it appears that significant

changes have been underway in recent years. In this chapter we will try to analyse the

economic relation between India and Maghreb countries in the era of liberalization

since the beginning of 1990s. Our focus would be country-wise, and mainly on the

new trends in Indo-Maghreb economic relations in the form of various bilateral

agreements, Memorandum of Understanding (MoU), High level delegation, joint

ventures and contracts that have been negotiated between both at the government and

private levels. In the first place, an account will be given of the economic relations

with Algeria, followed by Egypt and Libya and finally Morocco and Tunisia.

Economic Relations between India and Algeria:

The relationship between India and Algeria was established in the same year

Algeria gained independence i.e. 1962. Since the beginning, the relations between the

two countries have been warm and cordial. Both countries have been consistently

supporting each other on vital issues at bilateral and multilateral levels. Indo-Algerian

relations have been characterized by a convergence of approach issues of international

concern. Active partnership within the NAM and agreement on issues of basic

importance to developing countries has been cementing factors over the year in this

relationship.3 For this purpose many Ministerial-level and official-level visits were

undertaken by both the countries which are as follows:

From India to Algeria:

In 1973, Prime Minister of India Smt. Indira Gandhi visited Algeria.

In 1985, Prime Minister of India Mr. Rajiv Gandhi visited Algeria.

In January 1996, Minister of External States (External Affairs) Shri

R.L. Bhatia visited Algeria.

3 www.iacci.org

204

In September 1997, Minister of External States (External Affairs) Smt.

Kamla Sinha visited Algeria.

In June 2000, Mr. Omar Abdullah, Minister of State for Commerce

accompanied by a 7 member delegation visited Algeria to co-chair the

7th

session of Indo-Algeria Joint Commission Meeting.

In October 2000, External Affairs Minister Shri Jaswant Singh visited

Algeria.

In March 2005, minister of States (External Affairs) visited Algeria.

From Algeria to India:

President Chakli Benjedid visited India in 1982, 1983 and 1987.

Foreign Minister Ahmed Attaf visited India in April 1997.

Minister of Energy and Mines Dr. Youcef Yousft visited India in June

1999.

Minister of Trade and Commerce Mr. Bakhti Helaib visited India in

August 1999.

President Bouteflika visited India as Chief Guest of Republic Day of

India in 2001.

Health Minister Dr. Abderkane Mohammed visited India on

September, 2001.

Bilateral Agreement and MOUs:

Bilateral economic and commercial ties between India and Algeria have been

steadily improving but they are still below potentials. Important Bilateral Treaties and

Agreements between India and Algeria are:

Air services agreement for improving connectivity signed in 2000.

Double Taxation Agreement signed in January 2001to avoid the

double taxation and prevent fiscal evasion with respect to taxes on

income and on capital with a view to promoting economic cooperation

between the two countries.

Phytosanitary Agreement signed in January 2001 to establish

cooperation in the field of quarantine and protection of natural

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vegetation of respective countries against diseases and destructive

agents.

Veterinary sanitation protocol signed in January 2001 to enhance

cooperation between the veterinary authorities of both countries.

Cultural Exchange Programmme for 2004-05 to strengthen the cultural

relations between the two countries by organizing painting exhibitions,

visit of artists, exchanging reading materials/books etc signed in

October 2003. This agreement was renewed for the period 2008-10.

Agreement between Press Trust of India and Algerian Press Service

signed in October 2003 to promote cooperation and professional

interaction between the two countries.

Agreement on cooperation in Small, Medium Enterprises (SMEs)

signed in October 2003.

A parliamentary Friendship Group with Indian and Algerian Parliament was

formed in April 2008. The government of India is keen to finalize the trade agreement

between the two countries. The drafts for which have been already exchanged. This

trade agreement would facilitate cooperation in trade amongst the two countries. India

is also keenly waiting for the establishment of Indo-Algeria Joint Business Council

between FICCI and Algerian Chamber of Commerce and Industry. Algerian response

is still awaited. Algerian importers are looking for Indian suppliers for those goods

which they are presently importing from China. Indian exporters should be made

aware of this growing opportunity. A 13-member business delegation visited Algeria

under the aegis of CAPEXIL from 21-22 July 2010 to participated in a ‘Buyer-Seller

Meet’.4

Joint Ventures and Projects:

Till 1990s, Indian Railways through IRCON and RITES executed projects in Algeria

mainly relating to the laying of railway lines and providing consultancy. In the light

of the improved situations in Algeria and in view of the vast potential in this country

Indian industries should have greater interaction with Algeria and make use of the

opportunities. Kalpataru of India also executed the construction of 400 KV

transmission line erection project with Sonelgaz Company of Algeria for a stretch of

4 Annual Report of India 2010-11; p46

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160 km. In 2010, it has also signed a contract with Sonelgaz, Algeria for the turnkey

construction of 220 KV transmission lines of 100 km and 60 kV lines of 120 kms.5

KEC International of India with its Algerian partner Sonelgaz executed the project of

construction of 400 KV transmission line erection project for a stretch of 180 km

worth US$ 22.5 million.6 With the Algerian company Sonelgaz, Engineers India Ltd

of India won three projects in Algeria which are establishment of trading centre for

Sonatrach Engineers; reconstruction of the refinery in Skikda; reconstruction and

modification of refineries in Algiers.7

TCIL of India established the Technical

Consultancy with its Algerian partner Sonelgaz and involved in various projects in

Algeria which are setting up a private telecom network; Erection of OPGW; Erection

of Lashed Cables.8 TCIL of India also ventured a project of design work in the cyber

city of Sidi Abdellah in Algeria with Algerian Ministry of Posts and

Telecommunications.9 Gammon India Limited announced that the Company's Wholly

Owned Subsidiary has been awarded a 220 KV Transmission Line Turnkey Contract

aggregating to US$ 22.5 Million in Algeria.10

Other Indian companies like Gulf Jyoti

International (a subsidiary of Jyoti StructuresLtd.) have secured new projects in power

transmission during 2010.11

Another Indian company Dodsal Engineering and

Construction FZE is executing an LNG train project worth US$ 250 million.12

Few

construction companies like Shapoorji Pallonji and Simplex Infrastructures Ltd are

establishing their offices in Algeria. In pharmaceutical sector, Sun Pharmaceuticals,

Mission Viva Care, Zydus Cadila and Famy Care are having their presence in Algeria.

Projects and Development India Ltd. is providing consultancy in project management

and engineering services for Sonatrach-Oman joint venture for production of urea.

The Algerian government has sought India’s help in developing its space and

Information Technology sectors. The two sides are in touch with each other in this

regard. GAIL of India expressed their interest to participate in a major project on the

anvil, the envisaged Trans-Sahara gas pipeline project linking Nigeria to Algeria and

onwards to the European market. The company also offered pursuing equity in LNG

5 http://www.moneycontrol.com/company-facts/kalpatarupowertransmission/history/KPT 6 http://www.kecrpg.com/press-release/kec-wins-projects-rs-550-crore-12-17-2009 7 http://articles.timesofindia.indiatimes.com/2004-11-05/india/27146571_1_sonatrach-eil-refineries 8 http://findarticles.com/p/articles/mi_m0NVN/is_4_24/ai_112985407/ 9 http://www.business-standard.com/india/news/tcil-forays-into-core-sector-consultancy/227507/ 10 http://www.reuters.com/finance/stocks/GAMM.NS/key-developments?pn=2 11 http://www.gulfjyoti.com/ 12 http://dz.linkedin.com/pub/viswan-ap/17/6b8/831

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infrastructure and in CNG projects in Algeria for which they are prepared to work

closely with the local agencies. Another company of India ONGC expressed interest

in working jointly with Sonatrach through the two MoUs already signed with them.

The leading up-stream company of India also offered to give training to the Algerian

oil sector personnel in diverse areas covering reservoir management, seismic studies

etc. Indian companies would pursue working with Naftec for identifying prospective

refining projects for participation by Indian companies and offering PMC services etc.

IOC offered to work together with Algerian companies in the areas of Refinery

upgradation, setting up of new refineries, bitumen formulations, consultancy services

pertaining to process units commissioning etc.13

Economic Relation between India and Egypt:

Egypt and India are tied together by a historical long standing close bilateral

relationship based on mutual respect, appreciation of regional and global role as well

as common endeavor to enhance bilateral ties in all fields of economic interest. And

both the governments have been working together for the suitable environment for

greater trade, investment and economic cooperation.

India and Egypt enjoyed an exceptionally close relationship during the Nehru-

Nasser era, and signed a Friendship Treaty in 1955. At that year Egypt under Col

Gamal Abdul Nasser and India under Jawaharlal Nehru became the founders of the

Non-Aligned Movement (NAM). During the 1956 war Indian Prime Minister

Jawaharlal Nehru supported Egypt to the point of threatening to withdraw his country

from the British Commonwealth. In 1967, India also supported Egypt and the Arab

during the Arab-Israeli war.

President Mubarak visited India in 1982, and again in 1983 to attend the NAM

Summit. He also paid a State visit to India on 16-19 November 2008. During this visit

following agreements were signed: Extradition Treaty; Agreement on abolition of visa

requirement for holders of diplomatic, special and official/service passport; MoU on

Cooperation in the field of Health & Medicine; MoU on Cooperation in the

Exploration and Use of Outer Space for peaceful Purposes; MoU on Trade &

13 www.sarkaritel.com; new Delhi; 23 April 2007

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Technical Cooperation. In 1995 the Jawaharlal Nehru Award for International

Understanding was conferred on President Mubarak.

On the other hand since 1980s there have been four Prime Ministerial visits

from India to Egypt. Prime Minister Rajiv Gandhi visited Egypt in 1985; Prime

Minister P.V. Narasimha Rao visited Egypt in 1995; Prime Minister I.K. Gujral

visited Egypt in 1997; and Dr. Manmohan Singh visited Egypt in 2009. Prime

Minister of India Dr. Manmohan Singh participated in the XV NAM Summit held in

Sharm El-Sheikh in July 2009. The Minister of State for Planning and Science and

Technology visited Cairo to attend the Middle East and North Africa Economic

Conference in November 1996 which afforded opportunities to explore additional

measures of cooperation in economic and technological fields.14

The Egyptian Foreign Minister Mr. Aboul Gheit visited India on 15-16

December, 2006 to attend the 5th

Session of the Joint Commission co-chaired by the

Minister of External Affairs of both India and Egypt. In this Summit five agreements

were signed including the Partnership Agreement; an MoU on bilateral air services;

the work Plan on agricultural Cooperation; the Executive Programme on Cultural

Exchanges; and Executive Programme on Cooperation in the field of Science and

Technology.

Minister of Petroleum and Natural Gas Mr. Murli Deora led a high level

delegation to Egypt on 22-25 April 2007. During the visit he discussed on bilateral

cooperation with Minister for Petroleum of Egypt.

Bilateral Treaties and Agreements:

Traditionally India has been one of Egypt’s most important trading partners in

the Asian Continent. The Indo-Egypt Bilateral Trade Agreement has been operative

since March 1978 and based on the Standard of Most Favour Nation clause involving

free trade in foreign exchange has replaced the earlier Trade Agreement of 1953. The

Indo-Egypt-Yugoslavia Tripartite Agreement under which tariff concession of up to

50 percent were available for 129 commodities, expired on 31st March 1993 and this

agreement has not been renewed. There are several other bilateral trade agreements

that exist between India and Egypt. These agreements are:

14 www.indianembassy.org

209

Agreement on Cultural, Education and scientific Cooperation 1958

Agreement on Technical & Scientific Cooperation 1969

Agreement on avoidance of Double Taxation 1969

Agreement on the establishment of the Joint Commission 1983

Agreement on combating international terrorism and trans-national and

organized crime 1995

Agreement on cooperation in the field of information Technology 1995

Air services Agreement 1997

Agreement for the Promotion & Reciprocal Protection of Investments

1997

Agreement on Tourism Cooperation 1997

MOU on Trade Promotion 1998

MOU for cooperation in the field of agricultural research signed

between ICAR and Agricultural Research Center of the Ministry of

Agriculture and Land of Egypt in 1998.15

Bilateral Investment Protection Agreement; November,2000

The Partnership Agreement 2006

MOU in the field of Micro, Small and Medium Enterprises was signed

on October 2009

MOU on Renewable Energy Cooperation was signed in January 2011.

Joint Commission:

Indo-Egyptian Joint Commission headed by both foreign ministers was

established in September 1983 to promote bilateral cooperation for mutual benefit in

various fields such as agriculture, economy, trade, industry, education, health, culture,

consular affairs, tourism, science and technology.

Joint Business Committee:

A protocol was signed between the Egyptian Federation of the Chamber of

Commerce and Federation of Indian Chamber of Commerce and Industry (FICCI) on

9th

April 1997 for setting up “Joint Business Committee”. Until now there has been

15 www.indembcairo.com

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only two meetings first in New Delhi in January 1998 and second in Cairo at the year

of 2000, and the 3rd

meeting was to take place in New Delhi in due time.

Joint Business Group:

Business communities in both countries have always been actively engaged

with each other. During the visit of the Prime Minister of India to Egypt in October

1997, Indo-Egypt Joint Business Group was formed at the initiative of Egyptian

Prime Minister. The Joint Business Group comprised nine top Indian businessmen

and eleven Egyptian businessmen. JBC has aims to form new joint ventures and

investment projects between the two countries. The meeting of JBC was held on

January 2002 at Bangalore. This meeting has led to identify the following areas of

cooperation with Egyptian Industry: steel, construction, tractors, agricultural

equipment, pumps and diesel engines, pharmaceuticals, tourism and auto components,

information technology, textiles, biotechnology.

Joint Ventures and Projects:

India is seemingly interested in tapping Egypt’s expertise in various areas.

However, the country’s principal focus is on infrastructure development and desert

agricultural methods. With the deregulation of the financial environment and

liberalization process in Egypt, an increasing number of Indian companies are looking

at Egypt as production base both for the domestic and regional markets. According to

the Egyptian sources, India is the 12th

largest foreign investor in Egypt with a total

investment of approximately US$ 800 million to US$ 1,000 million in close to 40

projects.16

And this amount is expected to rise to US$ 5 billion over the next three

years.17

Indian companies have a strong presence in Egypt. Alexandria Carbon Black

(ACB) was set up in 1994 by Grasim India Ltd (subsidiary of Aditya Birla Group)

with TREMCO and ATC as Egyptian partners which has been the leading successful

joint venture between Indian and Egyptian companies.18

A new Acrylic Fibre Plant

had been set up by Alexandria Fibre Co. of Egypt and the Aditya Birla Group jointly

16 Egypt state information service: Mubarak starts historic visit to India to boost strategic partnership

between the two countries; www.mfa.gov.eg 17 www.desiegypt.com/investment.htm 18 Alexandria Carbon Black Co. SAE (Egypt);

http://www.adityabirla.com/our_companies/international_companies/alexandria_carbon_black.htm

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in 2006.19

Egypt is a modern country with latest trends in hospitality and it has a

strong infrastructures and India is also contributing through its hotel industry. The

Oberoi Group of India has been managing a hotel and Nile Cruises named Oberoi

Zahra.20

ESSEL of India has set up a joint venture with Mashoor Pack of Egypt for

manufacturing laminated tooth paste tubes for Proctor and Gamble in Egypt.21

ESSAR of India also signed a contract with National Iron and Steel Company of

Egypt worth US$ 30 million for supply of hot briquetted iron (HBI). Joint Ventures

between Asian Paints and SCIB Chemical (Orascom Group) was established in

October 2004. HDFC facilitated the setting up of EDFC (Egyptian Housing

Development Company) by acquiring 10 percent equity and providing technical as

well as management assistances. IFFCO has signed an agreement with Al-Nasr

Mining Co to establish a phosphoric acid plant in Upper Egypt entailing an

investment of over US$ 350 million. Ranbaxy has an Egyptian subsidiary for

manufacturing pharmaceutical formulations. TELCO has tied up with a local private

sector company ETAMCO for assembling pick-ups, trucks and mini buses. Bajaj

Auto and Bajaj Tempo have tied up with ELTRAMCO for assembling two wheelers

and Matador vans respectively. Bajaj Auto dominate the three-wheelers market in

Egypt. Ashok Leyland in collaboration with the Engineering Automobile

Manufacturing Co of Egypt are assembling and selling mini buses in Egypt. Mahindra

& Mahindra was reported to have entered into an agreement with Bavarian Auto

Trading Co. for setting up a CKD assembly unit for utility vehicles and pick-ups in

Egypt. TATA Motors have an office in Egypt and recently they launched their entire

range of vehicles in the Egyptian market. Satyam Mahindra Computers (previously

known as Satyam Computers) and WIPRO have set up its global delivery centers in

Cairo. Marico, and Indian Consumer Goods Company acquired ‘Fiancee’ a hair care

brand from Egypt Ready Group. SBI has a Representative Office in Cairo.

Nile Tex is a 100 percent Indian company manufacturing PVC water-storage

tanks. Dabur India Ltd has started production of its hair oils and other cosmetic

products in a 100 percent owned facility at the Ramadan Industrial City. M/s Auto

Tech Engineering is another 100 percent Indian company manufacturing auto valves.

TATA Exports signed an agreement with El-Nasr TV Co. of Egypt worth US$ 3.5

19 http://www.adityabirla.com/our_companies/international_companies/alexandria_fiber.htm 20 http://www.cruisecritic.co.uk/reviews/cruiseline.cfm?CruiseLineID=133 21 http://groups.google.com/group/4ah3mkdrh6/web/procter-and-gamble-egypt

212

million for supply of TV Electronics components. Reliance Petrochemicals is yet

another important Indian player doing business in Egypt. In 2003, Indian giant

Reliance signed a contract with the Egyptian General Petroleum Corporation (EGPC)

to import 8 shipment of raw oil. In August 2004, the Indian company Gas Authority

of India Ltd.(GAIL) procured 15 percent of the Egyptian Company’s Natural Gas

which deals with marketing and distributing natural gas in Egypt.22

In 2005, OVL

negotiated a 33 percent stake in an offshore block operated by Shell in the north-east

Mediterranean. On November 2005, India Farmers Fertilizers Co-operative Ltd.

(IFFCO) in collaboration with El-Nasar Mining Company (ENMC) launched Indo-

Egyptian Fertilizer Company (IEFC) for setting up a state of the art Phosphoric Acid

Project.23

Gujarat State Petroleum Corporation (GSPC) of Gujarat reported in

December 2006 that it had bagged two exploration blocks in Egypt in partnership

with a Canadian Company. The Oil and Natural Gas Corporation is running

multimillion projects. In March 2007, the Sanmar Group completed acquisition of a

unit of Trust Chemicals of Egypt. In June 2007, South Asian Petrochem Ltd entered

into a shareholders’ agreement with Echem of Egypt to set up a US$ 250 million PET

resin plant in Egypt. In 2008, India’s KEC International Ltd. received its largest order

worth US$ 141.83 million from Egyptian Electricity Transmission Company. The

order was funded through the European Investment Bank and the Egyptian National

Bank. The order included design, supply and construction of power transmission

towers and laying of 196 km of transmission lines in Egypt.24

Kirloskar Brothers have

got an approval for manufacturing diesel engines and irrigation pump sets in Egypt

and have started production. Therefore, Indian companies have given a very good step

in exploiting the business environment in Egypt.

Economic Relation between India and Libya:

Libya is located in northern Africa, bordering the Mediterranean Sea, between

Egypt and Tunisia. With population of 6.46 million, Libyan economy is dependent on

revenues from the hydrocarbon sector which contributes about 95 percent of export

earnings, 25 percent of GDP and 80 percent of government revenues. Libya is an

OPEC member and holds the largest proven oil reserves in Africa. It is one of the

22International relations between Egypt and Asia; www.mfa.gov.eg 23 Egyptian Asian Relations; www.mfa.gov.eg 24 Arab Republic of Egypt; www.mfa.gov.eg

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richest countries in Africa with a GDP per capita of US$ 14,878.24 in 2010.25

However, most of this wealth does not reach the general population, and this was one

of the key causes of the uprising, together with a reaction to the repressive policies of

the regime. Libya is estimated to have lost two third of the oil output while fighting

between government and rebel forces and international sanctions halted all oil exports

from Africa’s third largest producer. Even after fighting ends, it could take years to

restore full production as facilities have been bombed and foreign oil industry workers

have mostly fled the country.26

The opening up of Libya’s economy to the world market has also meant a

change in attitude towards Arab and African countries. Libya has been moving away

from Arab countries, perhaps because it is still resentful of their lack of support when

it was feeling the weight of the embargo. An instance of this change is its

rapprochement with Israel.27

The other important change is the development of

Libya’s African aspect. Libya which has been facing American sanctions, is broad-

basing its trade and economic engagements with rest of the world. In this process, it

looks at countries like India to fill the technological gap particularly in the

Information Technology sector. With this background, India can play as a very

important partner to promote the economic relation with Libya. In political terms,

Libya is becoming an important influence in Arab and African continents because it

has vast amount of hydrocarbon reserves

Despite being separated by geography, India and Libya enjoy strong bilateral

ties. For India, which is looking for energy equity, Libya can be an important country.

To strengthen India’s relation with the African Union, Libya is the important country

to cement the relation. Being an oil producing country, Libya required manpower in

various sectors. Therefore, India is a in a position to balance the interest of both

countries. India has supported Libya in international forums. India welcomed the UN

Security Council resolution 1506 adopted on September12 2003, lifting sanctions

imposed on Libya.

After 23 long years, the Indian leadership visited Libya, the important and

interesting Maghreb country with a booming economy. External Affairs Minister Mr.

25 Encyclopaedia: Middle East and North Africa 26 www.economywatch.com 27 Rossiiskaya Gazeta; 24 May 2004

214

Pranab Mukherjee visited Libya in 2007 which showed that India is trying to revive

and reaffirm its traditional ties with the Maghreb countries. His visit was too late but

desired. As Asia and Europe are trying to carve out a new agenda, India is also keen

to promote cooperation between Asia and Africa. India and Libya can play a major

role in bringing Asia and Africa closer as Libya is the northern gate for Africa, and

India is an active member seeking to play an essential role in Asia; while former

President of Libya, Muammer Gaddafi also said “the sky is the limit for cooperation

between the two countries.” On his visit he discussed about the oil and petroleum

sectors as well as human resource development with Mr. Gaddafi. In one of the

meeting with businessmen he said, “ India has unlimited interest to promote the

historical friendship relations with Libya, and to broaden the prospects of cooperation

between the two countries especially in the economic, commercial, cultural and joint

investment fields.”28

There has been a series of high level visits between India and

Libya including VVIPs.

From India to Libya:

Prime Minister of India Smt. Indira Gandhi visited in 1984.

Minister of Petroleum and Natural Gas Mr. Murli Deora visited Libya

in January 2007.

External Affairs Minister Shri Pranab Mukherjee visited Libya in May

2007.

Deputy Speaker of Rajya Sabha Shri Rehman Khan visited Libya in

September 2009 to participate the 40th

Anniversary of Al-Fatah

Revolution.

From Libya to India:

Minister for Asian Affairs, Mr. Burrani visited India inMarch 2007.

Minister of Economy, Trade and Investment Mr. Alasawi visited India

in July 2007 on the occasion of 10th

session of Indo-Libya Joint

Commission.

28 Why Pranab’s libya visit is important; www.redifff.com/news/2007

215

Minister of African Affairs, Dr. Abdussalam Treki led the Libyan

delegation which participated in the India-Africa Forum Summit at

New Delhi in April 2008.

Secretary of Administration Committee of Harbours Authority

(Minister of State) Captain Ramadan, visited India in March 2009 for

negotiating the bilateral Shipping Agreement.

Dr. Treki as UNGA President visited India in 2010

Libyan Foreign Minister Mr. Abdelati al Obeidi visited India in July

2011.

Bilateral Treaties and Agreements:

India and Libya has strong bilateral economic relations. In 1978, the two

countries signed a framework agreement on “Protocol on Industrial, Economic and

Scientific Cooperation”. This was the beginning of consultations on economic

cooperation between the two countries under Indo-Libyan Joint Commission (ILJC).

Till now total of ten sessions of ILJC have been held between two countries. Both

countries have linked different important treaties and agreements.

Avoidance of Double Taxation and Prevention of Fiscal Evasion

(1981).

Agreement for Cooperation in the field of Health and Medical Sciences

(1983).

Agreement on Economic Cooperation (1985).

Cultural Agreement (1985).

Bilateral Investment Promotion and Protection Agreement (BIPPA)

(2007).

Cultural Cooperation Agreement (2007).

There is no direct flight from India to Libya. Therefore, India is studying

Libya’s proposal to link New Delhi and Tripoli by direct flights to foster closer

relationship and both sides have agreed to initiate talk in this direction. But it would

depend on the economic feasibility of the operation.

216

Joint Ventures and Projects:

The economic cooperation between the two countries spans the entire

spectrum of commercial activities. During the oil boom years, several public and

private sector Indian companies participated in construction and development

activities in Libya. Indian companies especially in hydrocarbon, power, construction

and IT sector have several ongoing projects in Libya. Indian oil majors – Indian Oil,

Oil India and ONGC Videsh (OVL) are increasingly involving themselves with

Libyan hydrocarbon sector both in Upstream as well as downstream sectors. BHEL

has successfully completed executions of prestigious Western Mountain Gas Turbine

Power Project.29

I-flex Solutions is implementing a project on core banking solutions

with the Central Bank of Libya and other five main banks.30

Also over the past

decades, Indian companies have executed several projects. These included building

hospitals, houses, schools, roads, power plants, airports, dams, transmission lines etc.

The presence of Indian companies in Libya had risen significantly in the last five

years including major PSUs like BHEL, OVL, IOC, Oil India and private companies

Punj Llyod, Unitech Ltd, KEC International, Dastur Engineering, Shapoorji Pallonji

International, SECON Pvt. Ltd., Global Steel ltd (Ispat Group co.), NIIT, Sun Pharma,

Simplex Projects and Simplex Infrastructure Ltd.

Libya has proposed that India should participate in the joint operation of

existing industries as well as investments in industrial projects and has submitted a list

of projects to the Indian side in this regard. In a significant development, India and

Libya have agreed to intensify cooperation in power, oil and gas (hydrocarbons) and

infrastructure sectors including railways. The Libyan side has invited Indian experts

to participate in its future power projects and also to participate along with

international companies in tenders floated from time to time by the Railway Board of

Libya. In the oil and gas sector, Libya has agreed to expedite approvals to enable

ONGC Videsh to join exploration projects in Libya. In august 2002, India’s

exploration major Oil and Natural Gas Corporation (ONGC), through its overseas arm

ONGC Videsh signed an agreement with the Turkish Petroleum Overseas Company

29 http://www.ibef.org/download/bharat_heavy_electricals_4dec.pdf 30 http://www.computerworld.com/s/article/98380/Banks_moving_to_change_out_core_systems

217

to buy 49 percent stake in two on-land oil and gas exploration blocks in Libya.31

Simplex Projects Ltd., a leading Civil Engineering and Construction Company, has

been awarded a contract worth Rs 2,000 crore for development of a housing project in

Libya. The project includes constructions of public building, schools, health centers,

mosque, community hall and shopping complex. The scope of work of these projects

also include construction of complete infrastructure like roads, drainage and sewage

systems.32

India’s strength in the areas of pharmaceutical, electronics, information and

technology, biotechnology, textiles, leather, consumer goods and agriculture are well

recognized. Indian organizations can supply complete plant and equipment in the

power generation and transmission, rail transport infrastructure, cement and

construction sectors. In addition there is scope for providing Indian consultancy and

managerial services for running industrial units, banks and other financial institutions.

The Libyan side reciprocated by expressing its desire to have closer ties with India

especially in these sectors.

Economic Relation between India and Morocco:

The geographical advantages make Morocco a strategic platform from an

economic standpoint. Morocco under global market economy is a significant market

opportunity for foreign and Indian companies and investors. In fact, Morocco has

implemented several economic reforms since 1980s to bolster the country’s

macroeconomic balance and accelerate its integration into the world market place.

India and Morocco have enjoyed cordial and friendly relations and over the

years bilateral relations have witnessed significant depth and growth. Both countries

have negotiated the cultural exchange programme to implement the bilateral cultural

agreement and many programmes are sponsored by Indian Council of Cultural

Relations (ICCR) to promote the Indian culture.33

Morocco is fully under Western

influence. On the one hand it has an agreement for preferential treatment with the EU

and on the other side it has signed an agreement with the US for the creation of a free

trade zone. Moreover, these trade agreements of Morocco offers Indian companies

31 http://www.ongcvidesh.com/NewsContent.aspx?ID=37&AspxAutoDetectCookieSupport=1 9

oct,2002 32 Simplex projects wins Rs2000 cr housing project in Libya; www.financialexpress.com; 9 jan,2009 33 www.cultureholidays.com

218

greater access to markets of Morocco, EU and US. In addition, Morocco also

maintains a number of trade agreements with other African and Arab countries

providing a ready platform for Indian companies for penetrating markets throughout

the region.

Morocco and India established diplomatic relations in 1957, a year after the

recognition of Morocco’s independence. Over the past 50 years the political relations

between Morocco and India have been developing steadily and smoothly. The two

countries share close or similar views on many international issues. Morocco and

India have steadily expanded excellent relationship in various fields. Former Prime

Minister of India Mr. Atal Bihari Vajpayee visited Rabat in 1999, the first ever Indian

Prime Minister to visit Morocco paving the way for developing closer and intense

relations. From Morocco, former Prime Minister Abderrehman Youssoufi visited

India in February 2000 and King Mohammed VI in 2001, both contributing

significantly towards reaching strategic partnership. King Mohammed VI also paid a

private visit to India in October 2003 and again in December 2005 which is widely

regarded in Morocco as Indication of his fondness for India. Prime Minister Driss

Jettou led a large delegation of 7-cabinet ministers, several senior officials and media

persons to India from 6-9 December 2004. The focus of the visit was to intensify the

economic and trade relations with India. Visits at Ministerial and official level taken

place regularly between the two countries.

Shri E. Ahamed, Minister of State for External Affairs visited Morocco from

23-26 May 2005 and had discussed wide range of issues of mutual interest with the

Moroccan Minister of State for Foreign Affairs Mr. Taieb Fassi Fihri. Shri Syed

Shahabuddin, Special Envoy of India visited Morocco in June 2005 and met the Prime

Minister Driss Jettou and Foreign Minister Mohammed Benaissa and sought

Morocco’s support for India’s candidature for the Permanent Membership of the UN

Security Council. Minister of State for Urban Employment and Poverty Alleviation,

Kumari Selja visited Morocco from 11-13 January 2006. She met Moroccan Minister

of Housing and Urbanization Mr. Toufiq Hjira and signed a Cooperation Agreement

in Low Cost Social Housing. Shri Ashwani Kumar, Minister of State for Industry

visited Morocco from 7-9 December 2006 leading a business delegation represented

by ASSOCHAM and was the Guest of Honour at the International Investment

Conference. He led a business delegation represented by ASSOCHAM and delivered

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key-note address on ‘Education, Training and Employment – the Challenges of

Investment’. In his address, he highlighted India’s success story of economic

development in recent years. During the conference, Tata Consultancy Services (TCS)

signed an agreement with Moroccan government to set up a Training Centre in

Morocco. A business delegation of ASSOCHAM that accompanied Minister of State

(Industry) put forth a proposal to the Moroccan leaders to mount an exclusive Indian

exhibition in Morocco to promote Indian products and services.

Minister of State for Industry, Shri Ashwani Kumar visited Morocco again

from 23-26 May 2007 to participate in the Symposium on ‘South-South Cooperation

in the fields of energy and industry – a challenges and opportunities’. Minister of

Chemicals, Fertilizers and Steel Shri Ram Vilas Paswan visited Morocco from 24-26

March 2008. During the visit he met the Prime Minister, the Minister of Energy &

Mines and the Minister of Commerce of Morocco and discussed about the joint

research for mining of phosphates and steel; setting up of industries in Morocco; and

boosting trade exchanges. In October 2010, Minister of State for Commerce and

Industry Shri Jyotiraditya Scindia visited Morocco and discussed various aspects of

bilateral trade and commerce. He also participated in the World Economic Forum for

Middle East and North Africa held in the city of Marrakech.

From the Moroccan side, the Foreign Minister of Morocco, Mohammed

Benaissa visited India from 25-27 June 2006 and met Indian Prime Minister, Minister

of State (External Affairs) and Minister of Agriculture as well as the Minister of

Culture. The two sides held discussions on various issues of mutual interest.

Moroccan Parliamentary delegation led by Abdelwahed Radi, President of the House

of Representative (Lower House of Moroccan Parliament) visited India from 27th

November to 1st December 2006. Mrs Nouzha Chekrouni, the then Minister of

Delegates to the Minister of Foreign Affairs and Cooperation visited India to

participate in the Satyagraha Conference in January 2007 and Mr. Omar Hilale,

Secretary General of Ministry of Foreign Affairs and Cooperation visited India in

February 2008. Minister of State for Foreign Affairs Dr. Mohammed Ouzzine visited

India in February 2010 to participate in the “2nd

India Arab Investment Projects

Conclave” organized by FICCI in New Delhi.

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Bilateral Treaties and Agreements:

Morocco maintains good economic relations with India which have witnessed

an improvement of bilateral trade which has expanded in the past few years mainly

after the visit of His Majesty King Mohammed VI to India during the year 2001. To

strengthen and fortify the economic relations, India and Morocco has shaped two

important institutional infrastructures:

A. Indo-Moroccan Business Council (MIJBC): The Morocco-Indian Joint

Business council was set up on February 2000 to help promote trade between

the two countries, contribute to industrial and technological collaboration

between their enterprises and economic institutions. The Council has proved

to be a useful mechanism for interaction between the Moroccan and Indian

companies. The MIJBC has held three meetings New Delhi (February 2001);

Casablanca (June 2001) and New Delhi (December, 2004). The fourth session

of the Council was scheduled to be held in Morocco.

B. Indo-Moroccan Joint Commission (MIJC): In virtue of the Indo-Moroccan

Trade Agreement of 1981, a Joint Commission was established consisting of

representatives of the two countries to ensure the execution and smooth

working of this Agreement. Since its establishment, the Joint Commission has

held three sessions at Rabat (May 1985); New Delhi (July 1995) and Rabat

(January 2001). The fourth session of Joint Commission is scheduled to be

held in New Delhi and proposes to further strengthen the bond between the

two countries in terms of trade and business opportunities.

Following bilateral agreements and Memorandum of Understanding (MoU) exist

between India and Morocco:

Trade Agreement, 26-09-1960;

Trade Agreement, 03-08-1963;

Trade Agreement, 17-11-1981;

Agreement on Economic and Technical Cooperation, 20-11-1981;

Cultural and Scientific Cooperation Accord, 12-01-1983;

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Mutual Cooperation Agreement between the Moroccan Export

Promotion Center (CMPE) and the Federation of Indian Export

Organizations (FIEO), 22-04-1996;

MOU on regular Consultations between the MAEC of Morocco and

the MEA of India, 25-06-1998;

Convention for the Avoidance of Double Taxation and the Prevention

of Fiscal Evasion with Respect to Taxes on Income, 30-10-1998;

Agreement concerning the Promotion and Protection of Investments,

13-02-1999;

Tourism Cooperation Agreement, 13-02-1999;

Agreement for Cooperation between Maghreb Arab Press (MAP) and

Press Trust of India (PTI), 13-02-1999;

Agreement for Cooperation in the fields of Merchant Shipping and

Maritime, 22-02-2000;

Agreement for Cooperation in the field of Energy and Mines, 22-02-

2000;

Agreement for Cooperation between RTM (Moroccan Radio & TV)

and Doordarshan TV, 22-02-2000;

MOU between CGEM (General Confederation for Moroccan

Enterprises) and CII (Confederation of Indian Industry) for setting up a

joint Business Council, 22-02-2000;

MOU between APEBI (Moroccan Federation of Information

Technologies, Telecommunications and Off-shoring) and NASSCOM

(the trade body of the IT/BPO industry in India), 22-02-2000;

Agreement on Plant Protection and Plant Quarantine, 27-02-2001;

Agreement on Veterinary Sanitation, 27-02-2001;

MOU in the field of Geology and Mines, 27-02-2001;

MOU on Mutual Cooperation between the Moroccan MAEC and the

Foreign Service Institute, 09-01-2004;

Air Services Agreement, December 2004;

MOU in the field of Agriculture Research and Education, December

2004;

MOU for Cooperation in Power Sector, December 2004;

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MOU on Bilateral Cooperation in Housing Sector, January 200634

Joint Ventures and Projects:

For long India has been one of the major markets for Moroccan phosphate and

its derivatives. Indian dependence of agriculture is on imported raw materials for

production of phosphoric fertilizers. The government encourages Indian companies to

establish joint ventures for production of fertilizers and related products. The joint

venture facilitates the company with buy back arrangement in other countries, which

have reserves of rock phosphates. This sector has tremendous potential of growth

working in cooperation with Morocco. Consequently, fertilizer industry in India has

adopted a strategy to increase fertilizer production through.35

A renowned Moroccan Group, Office Cherifien Des Phosphates (OCP Group)

continues to sustain healthy relations with its Indian partners. The first Indian joint

venture in Morocco called IMACID was set up in 1999 to produce phosphoric acid.

The plant has been located at Jorf Lasfar. The initial joint venture partners were M/s.

Chambal Chemicals & Fertilizers Ltd of the Birla Group from India and Office

Cherifien des Phosphates (OCP) on the Moroccan side. In 2005, Tata Chemicals Ltd.

joined IMACID project as third and equal partner. This plant produces about 4,

30,000 MT per annum of phosphoric acid and nearly all of which is imported by

India. On the other hand, in 2002 Moroccan Phosphate Organization (OCP) and Zuari

Chambal of the Birla Group purchased 74 percent shares of Paradeep Phosphates Ltd.

of Orissa in India. The presence of both Birla Group and Tata Group in Morocco in

phosphate sector opens the doors to expand business opportunities in other sectors in

the future.

The Kingdom which has very strong economic cooperation with India in the

field of phosphates reiterates its call on Indian companies for investing in new

economic sectors from automobile to agriculture machinery and agro-industry, power

to tourism and IT services to pharmaceutics. Furthermore, Morocco offers a rich and

widely diversified potential which gives Indian companies the opportunity to use it as

34 www.moroccoembassyin.org 35 www.moroccanamericantrade.com

223

the gateway for trade with the EU, the US, the Mediterranean countries as well as

Africa and the Arab world.

Among other business activities, Tata Motors through HISPANO Maroc

Company is producing bus bodies in Casablanca. M/s NIIT has set up its training

centre in Casablanca on 5 November 2002 in collaboration with a local company M/s

Entalik. Ranbaxy International is in the process of expanding its presence in the

country. M/s Ranbaxy has set up a representative office in Casablanca since July 2005

to market its products and to explore joint venture possibilities. Tata Consultancy

Services (TCS) has signed an agreement with the Moroccan government to set up an

off-shoring delivery centre in Casablanca in 2007. R. J. Corp of India has taken over

Pepsi’s operations in Morocco since the beginning of 2011. Gujarat Flourochemicals

have signed an MoU with a Moroccan partner for mining and processing of fluorosis

acid in Morocco.

Indian exporter participated in trade fairs and industry exhibitions in Morocco

regularly. Indian Industry and business associations e.g. CII, FICCI and ASSOCHAM

have institutional arrangements with Moroccan industry and business associations.

The first FMB Africa Fertilizer Conference and Exhibition was held in Marrakech by

the FMB Group in conjunction with the OCP Group from April 7-9, 2010. Ten Indian

companies headed by CHEMEXCIL, Mumbai participated in this Exhibition. The

fifth Edition of the international Agricultural Fair was held in the city of Meknes from

April 28 to May 2, 2010. This event was jointly organized by the Moroccan Ministry

of Agriculture and the Association of Moroccan International Agricultural Fairs.

TAFE, Escort India Ltd. and Mahindra participated in this event along with some

other Indian companies. A team from Gems & Jewellery Export Promotion Council

of India visited Casablanca on June 21-22, 2010 to create awareness among the

Moroccan businessmen and importers about the Indian Gems & Jewellery Industry.

Subodh Bhargava, former President of CII and Chairman of TATA

Communications Ltd said that bilateral relationship needs to be elevated to a higher

trajectory and new areas of trade needs to be explored apart from the traditional trade

areas of commerce. He added that CII will constitute a Task Force for India Morocco

Economic Cooperation to accelerate bilateral economic relations between both the

224

countries. This Joint Task Force will comprise of representatives from the government

and the industry.36

Economic Relation between India and Tunisia:

Tunisia has been a hub of trade between Africa and Europe. Over the past

decade Tunisia has leaned toward the European Union to a large extent due to its

traditionally close ties with France and to the proximity and economic dynamics of

this economic zone. These relations have furthermore grown even closer due to the

agreement on the creation of a free trade zone between Tunisia and the EU which

anticipates the elimination of part of the trade barriers and which will become fully

operational in 2008. Furthermore, Tunisia has intensified its relations with the US so

that, together with Morocco, it constitutes one of the US’s major political-military

allies in Maghreb Region.37

Therefore Tunisia is highly integrated in the foreign

relations of both the EU and US.

In contrast, relations between India and Tunisia have been friendly and free of

discord. The diplomatic relations between India and Tunisia is more than fifty years

old. Tunisian leaders acknowledge with appreciation the strong support that India

extended to it in its struggle for freedom. At the international level, the two countries

share common principles and have similar approach in many issues. At the bilateral

level, a lot has been done but the path is still long because the ambitions and the

perspectives are very big.

Notable among the exchange of visits in the past were those of former Prime

Minister Smt Indira Gandhi in 1983, followed by former Prime Minister Narasimha

Rao in 1992. Former Prime Minister I. K. Gujral paid a visit to Tunisia in 1999.

However from the Tunisian side although there have been several ministerial visits

but no VVIP visit has taken place so far.

There is a Joint Commission at the Ministerial level. A mechanism for Foreign

Bilateral Consultation exists between the two countries. In addition there are Joint

Working Groups which have been meeting quite regularly. We have several

agreements and MoU in many fields. This is the legal and regulatory framework.

36 www.dayafterindia.com/detail.php 37 Political-economic relations between Russia and North Africa; www.minprom.gov.ru; 28.10.2009

225

Bilateral Agreements and MoUs:

Several agreements have been signed between India and Tunisia which includes:

Indo-Tunisian Trade Agreement (1960)

Agreement on Friendship and Technical, Economic and Scientific

Cooperation (1965)

Cultural Agreement (1969)

Agreement on Trade and Economic Cooperation (1994)

Agreement in Scientific and Technological Cooperation (1995)

Extradition Treaty (2000)

Protocol of Cooperation between Diplomatic Institutes of the two countries

(2002)

Agreement in the field of Small and Medium Enterprises (2007)

Air Services Agreement (2007)

Besides these agreements Indian government also signed various Memorandum of

Understanding (MoUs) with the government of Tunisia. The MoUs include those on

utilization of nuclear energy for peaceful purposes in 1997; on Agriculture in 2000;

on Tourism in 2000; and on Cooperation in Communication and Information

Technology in 2004. Several agreements have an action plan which must be

implemented into actions. For some agreements, achievements are satisfactory. The

scope of cooperation between the two nations is large and there are important

opportunities, but opportunities do not wait. Eagerness is needed like china.

Joint Ventures and Projects:

Indian and Tunisian business circles have a lot of partnership opportunities

because Tunisia is a doorstep of markets of more than 700 million consumers of EU.

It is a platform to three huge markets: the Maghreb, the Sub-Saharan and the

European market. On January 1, 2008, Tunisia became the first Mediterranean

country to implement a free trade zone with the EU which means that import and

exports are tax free.

There is only one Indian Joint Venture in Tunisia “Tunisia-India Fertilizer SA

(TIFERT)” launched in 2006 for manufacturing Phosphoric Acid. 30 percent shares of

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this project are distributed equally between two Indian companies Coromandel

Fertilizers Ltd and the Gujarat State Fertilizers Ltd. While the remaining 70 percent

held by Tunisian enterprise. And the entire production is to be shared equally by the

two Indian partners. 38

Moreover, few Indian companies have presence in Tunisia. Bharat Earth

Movers Ltd. (BEML), Bangalore has been supplying heavy duty dumpers to the

phosphate mines of CPG (Tunisian company) for the last five-six years. KEC

International Ltd., Mumbai has been awarded a contract for construction of 600 km

225KV transmission line worth Rs 200 crore between Libya and Tunisia. M/S Jyothi

Structures is presently engaged in supply and erection of electric transmission lines

worth US$ 73 million. Kudremukh Iron Ore Ltd. is participating in the El Fouladh

International tender for supply of 50,000 meter iron pellets. Telco is in an advanced

stage of concluding an agreement with Dalmas, the motor division of the El Mzabi

Group of companies for appointing them as their agent in Tunisia as well as setting up

of an assembly plant for light commercial vehicles. Sanmar Footwear Ltd., Chennai

has selected a local Tunisian shoe company for manufacturing shoes for the British

market. This is on an experimental basis and if it succeeds, the company plans to set

up a joint venture. The company is also keen on setting up a textiles joint venture in

Tunisia for the European market.

The state monopoly for import of tobacco in Tunisia, Regie Nationale des

tabacs et des Allumettes (RNTA), decided to import 400 tonnes of tobacco from Best

India Group, Guntur against the tender for June 1999.

Also Tunisian authorities are holding discussions with TISCO and GSFC to

set up a fertilizer joint venture in Tunisia. BHEL too is proposing to set up “solar

energy” projects in Tunisia. One of the key reasons for Tunisia’s recently acquired

economic prosperity is the success of various schemes set up to attract investment e.g.

investment guarantee schemes, schemes for suspension of double taxation, duty free

access for industrial products, preferential access for agricultural products etc.

Tunisia’s economic prosperity is being fostered by the combined effects of large scale

privatization, liberalization and diversification.39

38 http://www.indiainbusiness.nic.in/industry-infrastructure/industrial-sectors/Fertilizers.htm 39 Country profile-Tunisia; www.iacci.org

227

According to the new reports, Tunisia is keen to have joint ventures with

Indian hospitals for setting up offshore hospitals in Tunisia which would cater to

European patients. A 3-member Tunisian Pharma delegation consisting of chemist

inspectors was on a 14 day visit (8-21 April, 2006) to India. These inspectors also

inspected bulk drug facilities in Hyderabad for supplying key ingredients to 18 drug

manufacturers in Tunisia. Indian drug makers led by Ranbaxy, Cipla and Hetero

Drugs are exploring opportunities for supplying drug ingredients and for setting up

manufacturing plant in Tunisia, which will provide customs duty free access to the

EU markets due to Tunisia’s FTA with the EU.40

India has an outstanding scientific

and technological expertise in many areas and this is known worldwide. So more

priority can be given in cooperation and technology transfer from India to Tunisia

especially in the fields of Biotechnology, Pharmaceuticals, Computing Information

Technology and communication etc.

The first Indo-Tunisia Joint Committee meeting was held in New Delhi on 8th

April 2008. The meeting was convened in order to initiate the cooperation agreement

in the field of small and medium sized Enterprises signed between India and Tunisia.

The Tunisian side evinced keen interest in various Micro, Small and Medium

Enterprises (MSMEs) in India, especially sharing of experience and technology in the

field of garments and textiles, electro-mechanical industries, food processing

industries and information technology. Besides cooperation in the area of incubators

and BPO, technical support to SMEs, Institutional mechanism for providing credit to

SMEs etc were also discussed. The Indian side identified various possible areas of

cooperation with Tunisia. These include capacity building for formulation of

industrial development policy and institutional framework for SMEs in Tunisia based

on local resources; industrial potential surveys and feasibility studies to identify thrust

areas and opportunities for MSMEs in Tunisia; entrepreneurship development/skills

training and setting up of vocational training centre.41

40 Commercial and economic report tunisia for april 2006; www.tradeindia.com 41 India-Tunisia in SME Cooperation; www.diplomatist.com