Iraqi industry looks for Indian deals

The efforts of India Inc to get a share of government, or coalition-run, reconstruction contracts in Iraq may have failed but trading opportunities in the war ravaged country have opened up.

A six member delegation from Federation of Iraq Chamber of Commerce (FICC), the apex trade body in Iraq, said in Kolkata that trading possibilities existed in abundance.

FICC members said they were eager to buy goods ranging from petrol pump equipment, to gas separartion plants, galvanised iron pipe and fittings, to ceramic tiles, shoes and even readymade garments.

"Iraq is a free country now. There is no restriction on import. On individual level, we can trade with any country. Iraq has been ravaged in war and it is also our duty to rebuild it," H N B Saffar, a key member of the delegation, said.

Saffar said theirs was the first Iraqi delegation to visit India after fall of Baghdad. The FICC team visited the Industrial India Trade Fair (IITF), organised by Bengal National Chamber of Commerce and Industry (BNCCI), here today to do business.

Each member in the team was from a different part of Iraq and all said they had started negotiations with local manufacturers.

Akram Kaji, a member of the team, said India was the cheaper sourcing option for Iraqis. "We can buy European products but they are three-times costlier than Indian goods. Chinese products are cheaper but they are of inferior quality," he said.

Indian traders and manufacturers at the meet expressed concerns about payments. "How are they going to pay us back? Are they going to trade in dollar or local currency?" a member of Engineering Export Promotion Council (EEPC) enquired.

Saffar, who passed out from New Delhi University in 1974 as management graduate, worked hard to dispel the confusion as the only person fluent in Elglish in the team.

"Since Basra port is yet to be operational, we will route the cargo through Jordan, Dubai, Lebanon or even Iran and then take it to Iraq over land. Letter of credit (LC) can also be opened in Dubai or Jordan. We have many good friends there and payment will not be an issue," he promised.

Queried if the interim government, run by the US administrator, would object such deals, FICC members said individual contacts were outside the purview of controls.