New Delhi:EU Ambassador to India Herve Delphin on Friday said that the geostrategic and geo-economic importance of India had become more manifest, the business opportunities more tangible. This has been reflected in the constant sustained growth of EU-India two-way trade at an average rate of over 10% a year.
Speaking at the launch ceremony of the Federation of European Business in India, FEBI, here, the Ambassador said, "Today the EU is the largest trading partner of India in goods, accounting for 12% of India’s total trade. The EU block is one of the leading trading partners in services. It is also one of the main sources of FDI in this country, representing 21% of total FDI to India".
He highlighted that European companies play an increasingly important role in India’s economy. There are about 4,500 EU companies present in India, which directly or indirectly give jobs to 6.7 million Indians. "These are usually high-quality and well-paid jobs. Most of these companies are led by Indian managers and draw on Indian talent. They not only create high-quality jobs, but contribute to India’s economic growth, investments, exports, increase the productivity of Indian economy, bring know-how, develop human resources and foster innovation", said the EU Ambassador to India.
Hailing the efforts of the EU delegation to form SEBI, the Ambassador said, "FEBI’s main mandate is to bring the voice of the European business and carry out policy advocacy vis-à-vis the Indian Government, but also the European Governments on what could foster a friendly pro-business environment and what business opportunities they envision".
He said, "In a world of diversification and de-risking of supply chains, India has every interest in positioning itself as the preferred “place to go” to. This can be achieved by maximising the success stories of European businesses in India, but also by addressing issues that constrain European businesses such as quality control orders, stringent import licences or local content requirements, legal uncertainties regarding investment protection, taxation".
Addressing this would result in more European investment in India, more manufacturing in India and more jobs in India. That is the reason why alongside the FTA, the Investment Protection Agreement and the TTC, FEBI stands as a cornerstone of the EU-India economic agenda. That is the reason why FEBI is a ‘force multiplier’ and ‘win-win’ enterprise. He noted that European companies will play their part and contribute to India achieving its goals of becoming a manufacturing hub and a developed country.
"If one considers the respective size of our economies EU (the 2nd) and India (the 5th largest in the world) and the size of our markets, EU-India dual trade should be at least twice if not three or four times higher than what it is at present. We should move from the current €120 bln to 250 or 300 bln easily or even 500 bln per year. Unlike its other big trading partners, India has a trade surplus with the EU meaning that it exports more than it imports (with more than 17% of India’s exports going to the EU). Expanding trade will be good for India in the first place", he added.
He stressed that trade can indeed increase if, together India-EU establishes the right conditions for the EU-India economic and commercial ecosystem to flourish. "The 9th round of the FTA negotiations took place in Delhi two weeks ago. The 9th in the space of two years, which is quite unprecedented by our standards. Yet, despite the best efforts of the negotiating teams, progress has been marginal. Fundamental differences are yet to be overcome", said the EU Ambassador to India.
He urged that both sides have to re-calibrate while adding that recalibrating does not mean aiming at a cheap, low-cost version of an FTA. Interest for both sides should be a meaningful FTA.
The Federation of European Business in India is the unified, independent and influential voice of the European Businesses in India, bringing together companies and national bilateral chambers to strengthen the collective EU policy advocacy voice and acting as a credible intermediary between government and businesses.
FEBI is supported by the EU Delegation in India and the Embassies of the EU Member States in India, who have constituted a Task Force composed of companies and the National Chambers of Commerce to establish it.
