India seeks to trade more with PNG

By TODAGIA KELOLA

Papua New Guinea needs to export more of its traditional commodities to India which are needed to grow India’s economy, but at the same time PNG needs to import Indian goods and services which are competitive in price and are of quality in the global market.
That’s from the Indian High Commissioner to PNG Dr. A.M. Gondane, during a discussion on Indian Investment & Trade Potential in PNG on Tuesday.
The event was part of the Indian Trade Promotion Week in Port Moresby. Representatives of Investment Protection Agency, business corporations, academicians, traders and industrialists in Port Moresby participated in the deliberations.
High Commissioner Gondane said the bilateral trade between India and PNG overwhelmingly favoureds PNG in that India spent US$ 210 million annually in PNG while PNG spent US$20 million in India.
He said skill development was a major mission in India and India could share some of the expertise by way of development assistance in capacity building with PNG. He also mentioned the need for early conclusion of Bilateral Investment Promotion & Protection Agreement (BIPPA) and Double Taxation Avoidance Agreement (DTAA) between PNG and India for facilitating investments and technology infusion in the country.
Mr Madhu Nair, Partner, Ernst & Young, Port Moresby, gave an overview of Indian economy, its population base, school and university enrolments, labour force, its innovative culture and booming enterprise. He mentioned that the Indian economy was largely self-sufficient in the agricultural sector, has a diversified industrial base and service sector. With its robust growth and stable financial architecture, India can be a possible destination for the proposed Sovereign Wealth Fund investments for guaranteed returns.
Prem Vardhan, Executive Director, Essar Projects (PNG) Ltd, spoke highly of Papua New Guineans - drawing attention to their strength, intelligence, keenness to learn and absorb new technologies and processes. He said that the present Government had emphasised health, education and infrastructure development and Indian investments in these sectors, especially infrastructure development including highways, ports, townships, etc. would be very relevant.
He said that Indian investors were looking for reliable partners and projects for investments here. He highlighted the resource endowments of PNG like gas, minerals, forest wealth, etc. and the scope for Indian companies to invest and develop these areas.
In a lively discussion that followed the presentations, issues were raised about the scope of technology/skills transfer, obstacles for growth, bureaucratic support for the political vision to be realised, transparency and elimination of corruption, etc.
The representative of PNG’s Investment Promotion Authority assured that it is trying to conclude DTAA and BIPPA with India and Minister for Trade Richard Maru would visit India, inter alia, to discuss these agreements soon.