Palestine boom beckons India

By Atul Aneja

GAZA CITY, JULY 1. As Palestine undergoes a volatile economic and political transition, India today positioned itself for a stronger economic partnership with the emerging nation.

According to sources, Palestine is likely to experience an economic boom once independent statehood is achieved in the not- so-distant future. The key, therefore, lies in being an ``early bird'' so that India avails itself of the economic opportunities on the horizon.

Already, the area under the governing Palestine National Authority (PNA) is showing visible signs of growth. Palestine has a $4-billion economy though nearly $3 billion is spent on Israeli imports. India exports goods worth $18 million to $20 million, either directly or via Israel, Jordan or Egypt.

After independence, the Palestinian market is expected to expand dramatically. It is estimated that $20 billion to $30 billion will be pumped into the Palestinian economy. Most of it will come from the international community by way of compensation for Palestinian refugees who have been displaced since the 1940s. A sizeable chunk of this money is likely to go for infrastructure development, laying the basis for a modern economy.

Anticipating these changes, the PNA has begun working overtime for developing a full-fledged harbour on the Mediterranean in Gaza. The project is expected to be completed in the next 25 months says an optimistic Palestinian official. An international airport at Gaza has already been operationalised. A construction boom is visible in Gaza. Cross Israel into Gaza from the Ezer check-point and you will see rows of houses and multistoreyed complexes dotting the city's skyline. Anticipating a boom in real estate prices, a section of the rich in the Palestinian diaspora has begun investing in these properties.

India, on its part, seeks to invest in Palestine's future. The visiting External Affairs Minister, Mr. Jaswant Singh, today set the ball rolling, announcing a credit line in principle for Indian investments. A Finance Ministry team is expected to visit Palestine to quantify the loan. ``Knowledge-based industry'' is likely to become a thrust area, the Minister indicated.

IT sector

Seeing a market in the Information Technology sector, Indian computer software companies have already established a modest presence here. Satyam Computers, along with TCIL, has executed a software development programme for Palestinian telecommunications. Goldstar Infotech, a Hyderabad-based company, is training Palestinians for developing software in Arabic which can then be exported to the large Gulf market.

While entrepreneurs in India's ``new economy'' are keen, businessmen belonging to the ``old economy'' are yet to show enthusiasm. For instance, a much-awaited delegation from the Confederation of Indian Industry is yet to show up here.

The External Affairs Minister, called on the PNA President, Mr. Yasser Arafat, last night and reaffirmed that the political foundation for better economic relationship with Palestine was in place. Mr. Singh reiterated that India continued to back the realisation of an independent Palestinian state. Besides, he reiterated India's support for the ``land for peace'' deal which was anchored in the United Nations resolutions 242 and 338. India, he said, stood for the implementation of the internationally guaranteed Oslo peace deal between the Palestinians and the Israelis. During his visit to Gaza today, the Minister inaugurated a library-cum-student activity centre as well as a library complex in the city's Al Azhar University.

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