Indian SMEs on the path to success in Syria
Syria has a diversified economy which is heavily dependent on its agriculture and energy sectors. In recent times, the Syrian government has implemented several economic reform programmes to facilitate economic growth. As a result, Syria's lucrative business landscape has attracted several foreign investors in recent years.
Trade ties with India
India and Syria share cordial trade relations. India mainly exports fabrics, chemicals, pharmaceuticals, metals, jute products and transport equipment to Syria. Alternately, Syria exports pulses, raw cotton, phosphates, raw wool and spices to India.
In the past few years, bilateral trade relations between India and Syria have been strengthened primarily due to the concerted efforts taken by Indian and Syrian SMEs. Notably, total trade between the two countries grew to $693.49 million in 2007-08 from $487.94 million in the year-ago period, marking a 42% increase.
Opportunities to be tapped
According to market experts, Syria has tremendous potential for Indian SMEs in sectors such as tourism, manufacturing, energy, IT and infrastructure.
Syria's telecom segment is also a thriving sector which is growing at a steady pace. Seeing the potential of this burgeoning segment in the near term, a number of Chinese telecom companies are partnering with their Syrian counterparts to explore this untapped market. Indian Telecommunications Companies can also grab a significant share in the Syrian telecom market by setting up their technology parks there.
Another sector for growth is the tourism industry of Syria. The Syrian government has projected earnings from this sector to increase to £100 billion by 2010. Industry experts, however, opine that the lack of proper infrastructure and investment will curb growth. Indian hospitality players can nonetheless cash in on the demand for luxury hotels, resorts and spas in Syria by offering their services there. Considering that all tourism-based projects are exempted from taxes, Indian SME can ensure a higher return on investment (RoI).
Both countries have actively pursued initiatives to boost bilateral trade ties. Several business delegations from India and Syria have explored growth opportunities for Indian and Syrian SMEs. Significantly, in 2003, the Indian government announced financial aid of $1 million to set up a National Biotechnology Centre in Damascus. A Joint Indo-Syria Council has also been set up to facilitate greater interaction between Indian and Syrian SMEs. These efforts are expected to play an important role in boosting bilateral trade relations between India and Syria in the coming years.
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About the Author:
David Parks is a well known author and has written articles on Paper Manufacturers, B2B Portal, Rubber Manufacturers, suppliers, Manufactures and many other subjects.