The meeting was chaired by Prime Minister and was attended by Finance Minister Pranab Mukherjee, Commerce and Industry Minister Anand Sharma and Chairman of PM’s Economic Advisory Council C Rangarajan. The industrialists present were Ratan Tata, Mukesh Ambani, Sunil Mittal, Azim Premji, Kiran Mazumdar Shaw, Chanda Kocchar, Deepak Parekh, Kesab Mahindra and Swati Piramal among others.

One of the main topics believed to have discussed was the possible impact of European crisis on the Indian economy. PM stressed on the need to give a boost to the manufacturing sector to realize the target economic growth of 10% in medium term. PM also exhorted the industry to reach out to rural economy and contribute in the efforts in skill development. He asked industrialists to form subgroups based on their interest in areas such as food security, public-private partnerships, backward area development and corporate social responsibility and give recommendations to the government.

The industry honchos have asked the PM to provide them relief in case of European financial crisis affecting Indian industries. India Inc also favored relaxing of FDI norms for defense sector and opening up of multi-brand retail. The industrialists are also believed to have made known their concern for the sharp fluctuations in the exchange rate affecting exports. Speedy implementation of Goods and Services Tax (GST) is another demand raised by India Inc.

This is the first meeting of the industrialists with government post European crisis. The Council was set up to find ways to improve India’s trade relations with other countries.

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Murli Deora, Union Petroleum Minister met visiting Turkmenistan President Gurbanguly Berdimuhamedov, who is imploring India to revive the TAPI cross-country gas line. “We expressed our interest in developing gas field in Turkmenistan,” said Mr. Deora after the meeting.

ONGC’s overseas investment division, ONGC Videsh Ltd. and GAIL India have shown interest in acquiring stake in a Turkmenistan onshore gas fields. S Sundareshan, Oil Secretary said, “We told them that we are willing to lay pipeline to transport the gas to their preferred destination.”

Turkmenistan President is said to be keen to revive the TAPI (Turkmenistan-Afghanistan-Pakistan- India) gas line project, which proposes to lay a gas pipeline from Turkmenistan to Indian and Pakistan through Afghanistan. The $4 billion gas pipeline project had been on the discussion table for long, but the unstable political scenario in Afghanistan has rendered it impossible for making further headway.

Turkmenistan President Gurbanguly Berdimuhamedov is on a three-day maiden visit to India from Monday last. Minister Deora together with oil secretary and other top executives from state-owned oil firms met Mr. Berdimuhamedov on Tuesday.

Another project discussed at the meeting is the setting up of a petrochemical plant in Turkmenistan. The pre-condition to this project is the supply of sufficient oil to run the plant.

Turkmenistan President is scheduled to meet both Prime Minister Dr. Manmohan Singh and President Pratibha Patil in New Delhi during his visit.

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The two prime ministers held a series of discussions on a wide range of topics, which Indian PM said went beyond the scope of deals signed. Dr. Manmohan Singh went ahead to declare Russia as a “key pillar of our foreign policy and a valuable strategic partner”. There is no denying that the two countries are renewing their friendship that once flourished during the Cold War.

The major deals signed during the visit include the five for the purchase of $7bn worth of military equipment and expertise. This includes a fleet of Mig-29 fighters and an aircraft carrier. The deal also includes 12 civilian nuclear reactors to meet the energy demands of the country.

Both Russia and India are trying in their own ways to strike trade deals with each other as a countermeasure to Chinese overtures. While India is apprehensive of China’s new friendship with South Asian countries of Pakistan, Sri Lanka and Myanmar as a part of its ‘string of pearls’ strategy, Russia is insecure about the vulnerability of its eastern regions.

Russian PM Putin has expressed hope that the bilateral trade would reach the $20bn mark by 2015 from the present $8bn. With India’s increasing import requirements and Russia’s interest in reviving bilateral trade, this is very much a possibility.

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Prime Minister Dr. Manmohan Singh, while speaking at the Council for Saudi Chambers of Commerce and Industry, had welcomed Saudi investment in Indian projects, including infrastructure. He said, “India’s needs for high quality modern infrastructure are vast. We have opened our doors to foreign investment and I invite investors and entrepreneurs from Saudi Arabia to explore investment opportunities in India. I would specifically refer to the construction, manufacturing, pharmaceuticals, health, agriculture, energy, telecommunications, tourism and other service sectors.”

In return, India is offering its expertise in knowledge-based enterprises. Dr. Singh said, “India has a proven track record in the field of knowledge-based industries, which have great potential for improving the skill set of the workforce. India would be happy to share her experience with Saudi Arabia in human resources development. Cooperation in the areas of science and technology are other areas for future development.”

Dr. Singh added that the emerging economies like India and Saudi Arabia will be playing a crucial role in the restructuring of global economic and financial architecture.  According to the Indian PM, the robust growth of two economies provides ample opportunities for business communities from both sides.

The strengthening of trading ties between two countries is crucial for both. From India’s perspective, Saudi is the largest supplier of crude oil, which gains importance as the country is readying itself for a higher growth in the coming decade. For Saudi Arabia, India offers a huge market for its crude oil with its ever-expanding demand for energy.

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Prime Minister, Dr. Manmohan Singh, said that the Congress party-led government is committed to protecting the interests of this group and will be taking up the issue on top priority.

The latest crisis to affect the expat workforce is the Dubai credit debacle. It is estimated that there are 4.5 million Indians working in Gulf countries. Despite assurances that the crisis will not cast shadow on the Indian workforce, the recent developments reveal a different story.

India, along with China and Mexico, tops the list of world countries receiving maximum remittances from its population abroad. Remittances are most important for the economies of developing countries. According to the World Bank estimates, every dollar of remittance is equivalent to three dollars in real to the economy.

India’s remittance for the last fiscal year totaled a whopping $50 billion. The major source of India’s remittance is North America. However, the last few years saw the spurt of demand for labor in oil-rich Middle-eastern countries, which shifted the balance in their favor.

The recession has affected both skilled and semi-skilled workers abroad. Dr. Singh said that a ‘return and resettlement fund’ would be set up to provide social security net for the returning workers.

Indian Community Welfare Fund is already in place in 18 countries to lend emergency support to the Indian workers. The government is also negotiating social security agreements with countries having large Indian emigrant population. While agreements are already in force with Switzerland, the Netherlands and Luxembourg, labor agreements are being negotiated with Bahrain, Malaysia and Qatar.

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