India - Iraq Economic and Commercial Relations

Trade and economic relations between India and Iraq have traditionally been close. Before the Gulf War in 1990-91, Iraq was one of the major sources of India`s oil imports and one of the biggest markets for India`s project exports, mostly in the construction sector. With the onset of Gulf crisis in 1990 and the imposition of UN sanctions, India`s trade with Iraq suffered seriously. In line with the relevant UN resolutions, India decided in June 1991 to partially lift the ban on trade with Iraq. It was expanded further under UN`s Oil for Food Programme in September 1996.

After the overthrow of the Ba`athist regime by the coalition forces in 2003, the UN sanctions have been lifted and normal trade between Iraq and other countries is getting normalized. The new government has been stressing the need for immediate reconstruction of Iraq. Restoration of oil production is of strategic importance. Other crucial areas needing immediate attention are electricity generation and transmission, water treatment, procurement of drugs, transport, agriculture, etc. Iraq will, therefore, need a great deal of foreign investment in the coming years. There will thus be considerable potential for the Indian companies to bid for the contracts or subcontracts in the reconstruction projects in the coming years.

Iraqi Ministries and State Companies have begun floating tenders for their requirements. The tender documents are now available on sale; tender documents for big projects are priced upto $ 25,000. The bidders are also required now to submit bank guarantee. In the recent past, however, many tenders have not led to actual award of contracts, the reason for which is said to be lack of funds with the Iraqi side. The Coalition Provisional Authority (CPA) is also issuing tenders, the details of which can be seen at its website www.cpa-iraq.org. Useful information about the new business opportunities or tenders can also be seen at the websites www.baghdadbusinesscenter.org; www.rebuilding-iraq.net.

In most cases it has been seen that the time indicated in the tenders for the submission of bids is rather short. It is, therefore, advisable for the interested firms to have some local representation to ensure timely submission of bids, and to monitor the situation on their behalf. The firms could also consider sending their representatives to Iraq periodically to assess the situation, and to make a market survey for their products or services in the new conditions.

The trade in private sector is expanding slowly but steadily. The number of Iraqi businessmen going to India is growing, averaging 90-100 every month. On the basis of interaction with them, the imports of following items from India seem to be gaining ground at present :-

1. Auto and watch spareparts
2. Electrical fittings
3. Ceiling fans
4. Meat
5. Paper and stationery items
6. Construction material, cement, etc.
7. Marble and Granite
8. Pharmaceutical items,
9. Imitation jewellery
10. Garments and textiles
11. Shellac
12. Ice factory machinery
13. Stainless steel utensils

Name of the Commercial Officers in the Mission: 1) Shri B.B. Tyagi, Ambassador, and 2) Shri M.C. Pandey, First Secretary.

The damaged telephone lines of the Mission are still to be restored. There is, therefore, no e-mail or incoming fax facility in the Mission at present. Pending restoration of normal telecommunications network in Baghdad, the Embassy is using the following mobile telephone : 001-914-360-5956.

• Federation of Iraqi Chambers of Commerce, Sa`adoun Street, Baghdad; tel: 9641-7187348; mobile: 9641-7171667, PO Box No.3388, Al-Alwia, e-mail: union@uruklink.net
• Baghdad Chamber of Commerce, Sink (near the Bridge), Baghdad, tel: 9641-8182002/8163234/8188207/8180220; P.O. Box No.5010.

Source : Indian High Commission, Iraq