India’s economy is predicted to catapult, and Morocco is in its sights to help further its expansion. India’s Minister of State for Commerce and Industry Shri Jyotiraditya Scindia and his Moroccan counterpart Abdellatif Maazouz, Minister for External Commerce, held discussions which included increasing Indian investment in the North African country.
Trade between the two countries currently stands at $1.1 billion, but the Ministers will meet again in Q1 2011 to discuss further trade and investment opportunities to increase their bilateral cooperation. While Scindia urged his country’s businessmen to take a closer look at Morocco, a couple of India’s largest companies are already eyeing the continent.
Tata, already working in Zambia for a hydropower scheme, recently announced that it was looking to delve further into South Africa’s biofuels and solar energy industries. For Morocco’s neighbor, Indian investments in Egypt are estimated to be around $2 billion in areas such as IT and the hydrocarbon sector with top Indian companies Essar, Reliance, and Tata group planning large investments. In addition, Suzlon Energy Ltd. said that it was going to shore up capital by selling shares or debt in order to help fund expansion in developing countries, including in Africa.
India’s projected GDP growth, ranging from 7% to 9% per annum, is expected to exceed 100 trillion by 2015. According to Edelweiss Capital, India’s GDP will grow four times by 2020. Morocco’s GDP is expected to slightly decline this year to 4% compared to 4.9% in 2009. However, total GDP growth for the MENA region is expected to reach 4.1% in 2010, up from 2% in 2009. The IMF said its projected economic expansion in 2011 could reach 5.1%.
Morocco could gain a great deal by increasing bilateral trade with India while also gaining Indian expertise in many priority sectors – including renewable energy. Maazouz reminded Scindia of Morocco’s strategic location, which could open the door a bit further for India to tackle the European and African markets.
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