Search the Internet           Tips

India eyeing reconstruction work in Iraq

Minister of State for External Affairs Ajit Panja's recent visit to Iraq (from September 23-25) was an exploratory tour, to acquire for India a slice of the pie when the country's anticipated economic reconstruction takes off, top ministry sources said on Thursday.

"With international oil prices going haywire, there is considerable pressure on the United Nations to lift the economic sanctions on Iraq. If that happens, India would like to have a slice of the pie pertaining to Iraq's economic reconstruction. That is why Panja visited Baghdad," the sources explained.

They pointed out that prior to the sanctions imposed on Baghdad in the wake of the Gulf War in 1991, Iraq was the second largest producer of crude oil among the Organisation of Petroleum Exporting Countries. It was producing more than two million barrels of crude per day. This had sustained Baghdad's ambitious developmental programmes.

According to the sources, the Gulf War had completely destroyed the Iraqi economy.

They estimated the reconstruction work to be valued at $150 billion.

"The figure is arrived at after taking into account the Iraqi people's pre-Gulf War living standards," the sources pointed out.

Iraq has the second largest oil reserves after Saudi Arabia. It is expected to last for at least 50 years even if the country produces three million barrels per day.

"Considering the skyrocketing prices of oil today, Iraq is bound to make an offer to barter its oil for economic reconstruction," the sources said. "Prices are not likely to go down soon," they said.

Other countries too are aware of the immense potential for economic reconstruction in the war-ravaged country. Already, according to the sources, French, Japanese and Turkish delegations have visited Baghdad to 'avail of the economic opportunities'.

Significantly, India has consistently maintained cordial relations with Iraqi President Saddam Hussain who is described as ' Indira Gandhi's personal friend' in South Block, according to the sources.

The sources pointed out that in recognition of India's cordial relations with his country, neither President Hussain nor any Iraqi leader has resorted to fiery rhetoric against New Delhi on the communal situation in India unlike some other Islamic countries.

Before 1990, Iraq was India's biggest trading partner in the Persian Gulf.

Back to top

Tell us what you think of this report