Introduction

The Kingdom of Morocco, a democratic constitutional monarchy where the crown is heredity is situated in the westernmost corner of northern Africa. Morocco borders the Straits of Gibraltar and the Mediterranean Sea to the north, Algeria to the east, Mauritania to the east and south, and the North Atlantic Ocean to the west. Morocco’s key geographical position makes it the center for cultural, political and economic exchanges in its part of the world.

The beauty of Morocco’s sites and its warm hospitality make the country an ideal vacations destination, where Europeans continue to be the largest group of visitors. The tourism sector provides employment to a large number of Moroccans.

The agricultural sector is one of the most important contributors to the Gross Domestic Product (GDP). The state has encouraged progress in the agriculture and food products industry through investments, subventions, tax-free benefits, etc. It has also opened the country to investment through the privatization of public companies.

Moroccco’s industrial sector is dynamic and constantly contributing to the GDP. Its primary industries include food products, tobacco, chemicals, mechanicals, metal, electricity, electronics, construction material, leather and textiles. All this has stimulated Morocco’s rapid growing export economy and plays an emphatic role.

Thanks to its reserves, Morocco is the world’s largest exporter of phosphates. A renowned Moroccan group – O.C.P. – continues to sustain a healthy relationship with its Indian partners. It is considered as one of the most important tradesmen of Phosphoric Acid in India.


Investment Climate

The Moroccan government actively encourages foreign investment and has made a number of regulatory changes designed to improve the investment climate in recent years. Morocco welcomes foreign participation in its privatisation program, and does not pre-screen or select foreign investment projects. 

The October 1995 investment code applies equally to foreign and Moroccan investors, with the exception of foreign exchange provisions, which favour foreign investors. The Ministry of Economy and Finance has created an investment promotion office and, in compliance with the investment code, is studying measures to reduce the paperwork associated with investment. A special ministerial committee on investments presided by the Prime Minister was created in the beginning of 1999 to activate and ease implementation of investment projects.

The investment code also codifies the existing foreign exchange regulations providing essentially free repatriation of foreign exchange related to foreign investment. The code does not apply to agriculture. Foreign investment is now permitted in all sectors except agricultural land. Other sectors such as phosphate mining and tobacco marketing are reserved for the state and are closed to foreign and domestic private investment, although the tobacco sector is now under consideration for privatisation. 

Since Independence Morocco has worked diligently and assiduously to develop its commercial relations and partnerships by concluding both bilateral and multilateral accords. Already, it has agreements in place with 12 European countries, 10 African countries, 8 Asian, 5 American and 5 Arab nations, reinforcing various policies and initiating trade and investment.

Morocco – India Relations 

The relationship between India and Morocco was enhanced and further consolidated after the visit of His Majesty King Mohamed VI, during between 26 February and 03 March 2001. Both the Moroccan Prime Minister Mr. Abderrahmane Youssoufi and the Indian Prime Minister Mr. Atal Behari Vajpayee have always made solemn attempts in the same aspect.

Trade figures between the two countries in recent years have been in favour of Morocco. In fiscal year 2000-01 Indian exports to Morocco were US$39.91 million, while imports were US$322.54 million, representing US$282.63 million in favour of Morocco. In 2001-01 Indian exports to Morocco were US$55.28 million and imports were US$266.39 million, with US$211.11 in favour of Morocco. Main items of export to India from Morocco include phosphate acid, phosphate and electronics, while Moroccan imports from India include cotton yarn, textiles as well as finished products and transport equipment. 

Morocco has very strong economic cooperation with India in the fields of phosphates. A renowned Moroccan group – Office Cherifien Des Phosphates (O.C.P.) – continues to sustain healthy relations with its Indian partners. During his ministerial meeting of 14 February 2002, Mr. Arun Shourie, Indian Minister of Disinvestment announced that the Indian government would sell 74 percent of its stake in the Indian company PPL, to a combine of K.K. Birla Zuari Chambal and Morocco based O.C.P., making PPL one of the most distinctive partners of O.C.P., and one of the most important tradesmen of phosphate acid in India.

To strengthen and fortify economic relations, India and Morocco shaped two components of institutional infrastructure – the Indo-Moroccan Business Council and the Indo-Moroccan Joint Commission. The Indo-Moroccan Business Council was set up on February 23, 2000 and held its second meeting on June 25, 2001, ensuring the follow up of the prevailing economic projects and at the same time inculcating partnership ventures between enterprises of the two countries. The third session of the said council is scheduled to be held in the year 2003 in India.

The third session of the Indo-Moroccan Joint Commission was held in Rabat during 23-25 January 2002. Mr. Rajiv Pratap Rudy – Indian Minister of State of Commerce led the Indian delegation. During the session, both India and Morocco avowed that the Moroccan partners would serve as a springboard establishing new target markets for India with the European Union as well as the Sub-Saharan African countries. In order to increase the volume of trade exchange between the two countries, Morocco suggested to export more to India including the following types of products: leather goods; cosmetics; medical plants; automobile spare parts; and, olive oil.

The volume of trade exchange between the two countries is expected to reach US$1 billion and henceforth, in order to augment the economic bilateral cooperation, delegations from both India and Morocco are expecting to exchange visits in 2002. The fourth session of the Indo-Moroccan Joint Commission is scheduled to be held in New Delhi and proposes to further strengthen the bond between the two countries in terms of trade and business opportunities.

Morocco Country Data