As Iraq attempts to get back on its feet after a devastating war, restarting its shattered economy is an area where India could play a major role and bag projects to "reconstruct" it, industry experts say.
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"The reconstruction of Iraq is one of the most urgent challenges facing the international community. In the post war period, rebuilding its economy means a chance for Indian business to rebuild traditional commercial ties with them and forge new areas," says Y K Modi, senior vice president, Federation of Indian Chambers of Commerce and Industry.
The Iraqis are keen to set up joint ventures in textiles, garments, light engineering goods, automobile parts, construction material, cement, ceramic, glass, food, data processing and other fields, he says.
Indian companies could get major sub-contracts in reconstruction projects in Iraq worth $20 billion next year, says Anil Aggarwal, chairman of FICCI's India-Iraq Joint Business Council.
"Indian companies would have to be there and interact with the United States companies and Iraqi, Kuwaiti and Jordanians for sub-contracts as these companies would be getting majority of the contracts," Aggarwal says.
US Embassy Charge d'Affaires Robert Blake, however, says, "Indian firms are well positioned to benefit from such opportunities because of India's long standing economic, social and cultural ties with Iraq."
Indians can make a big contribution in helping rebuild Iraq's economy as they have an advantage over persons from European countries, Agarwal says.
"Indians have the added advantage of being preferred by Iraqis as compared to Germans and Britishers," he says.
Elaborating on the aid given to Iraq, secretary in the external affairs ministry, R M Abhayankar, says, "India has already committed $6-7 million for construction of a maternity and paediatric hospital in Najaf," a decision which the US has commended.
"India has been quick and generous in pledging support for Iraq's reconstruction. It announced a $20 million package to provide immediate medical, food and technical support for the Iraqis," Blake says.
Yousif M Abdul Rahman Al Ani, leader of an Iraqi delegation, who was recently here, says though Iraq was facing some problems due to low revenues, "it is expected that in the long run, Iraq will not have any difficulties in financing its development projects."
There was an increased demand for medical equipment and pharmaceuticals in Iraq, Abhyankar says, adding business houses should "not strictly go by commercial considerations" and add a humanitarian element to trade.
Indian companies would have to address issues like banking and introduction of the new currency in Iraq before making long-term investments, he says.
Al Ani says the new economic policy was based on free economy and measures have been taken by the government to improve the performance and efficiency of both private and public sectors.
Referring to the new foreign investment regulations, Al Ani says, "This will permit foreign investments and joint ventures in Iraq."
"The best prospect for Indian firms in the new term, in addition to supply of different commodities, may include agricultural products and equipment, heavy machinery, health care products and equipment including pharmaceuticals, oilfields and refineries equipment, electronics and communication equipments, computers and other high technology goods and services," Ani adds.
India has supported Iraq by participating in the 'Oil for Food' programme and has been providing food items, life saving medicines, textiles, spares for oil industry etc.
As per the 'Oil for Food' programme, Indian companies have received export orders worth more than $1 billion from different sectors and ministries in Iraq.
The list includes tea, wheat, generators, pumps, motors, LPG cylinders, electric transformers, distribution boards, medicines, pharmaceuticals, equipments for oil industry etc, Modi says.
International support is crucial for Iraq to move closer to full independence, Blake says, adding the upcoming 'Reconstruction Conference' in Madrid on October 23-24 will be an opportunity for all donors to provide maximum support to Iraq.
India's participation in the reconstruction process will provide a boost to such efforts, he says.