EU-India Strategic RelationshipImperatives for Business

EICC-CBC-GOPIO ConferenceWednesday, Nov 9th 2005

European Parliament

Dr. Mohan KaulDirector General

Commonwealth Business Council

EU-India Background Relationships dates back to 1963

New meaning given to the relationship with EU making India a Strategic Partner

Action Plan has 4 chapters Political Trade & Investment Economic Policy Cultural & Academic

6th EU-India summit concluded in Delhi in September

EU-India Trade Highlights

1. EU is India’s largest Trading Partner.

2. Bilateral Trade - € 33 billion in 2004.

3. 17% increase from 2003

4. Exports to EU accounts for 25% of India’s exports

5. India ranks as EU’s 12th trading partner-1.7% of the total EU trade.

6. India receives 25% of its FDI from EU

7. Main Import partners: Belgium (6.1%), United Kingdom (4.6%), Germany(4.5%)

8. Main Export Partners: United Kingdom(4.8%), Germany(4%)

UK-India Trade Highlights Trade in Goods £5bn+

Trade in Services £1bn+

UK is ranked at number 5 in the total FDI inflows to India. Energy, Telecom & Invisibles.

India – 2nd largest investor in the UK from Asia in terms of number of projects, and the eight largest overall.

60% of Indian investment into the EU comes via UK

Tip of the Iceberg

The potential could be lot more Look at India-China trade It’s growing at 70% y-o-y and is estimated to

touch $20bn by 2008

Can this happen to EU-India trade - Yes Need better understanding on both sides

(WORKING GROUPS)

Tip of the IcebergSo far wealth generation & capturing has happened in developed economiesNow it must be shared equally

What Indian Companies NeedIndian companies are moving up the value chain rapidly…but need marketing anddistribution partners in the west.

What European Companies NeedEU will not be able to innovate at the same rate, therefore must adapt to the newBusiness models

A. Use India as a low cost production base to sell into the large domestic markets

B. Use that base also to re-export E.g. Auto-Component and Automobile manufacturers

Major Progress Air Services Agreement

Science & Technology Collaboration

Space Collaboration

Anti-Terrorism Co-operation

Film Co-Production Treaty

Sustainable Development Agreement

Emerging OpportunitiesAir Services Agreement

Expansion of passenger services – TOURISM BOOST

New Routes

Direct services between India-UK are set to triple this year(56 weekly services between DEL/BOM-LHR route by winter this year).

Unlimited Cargo Services

Guarantee on fair competition

Removes the unnecessary restriction on pricing

Emerging OpportunitiesScience & Technology

Life sciences, genomic and biotechnology for health

Material SciencesNano-technologies

Aeronautics & SpaceIndia is now a partner in the Galileo project

Capacity Building through collaboration with universities

Emerging OpportunitiesAnti-Terrorism Co-operation

EU has allocated €200 million

Major potential for Information Security Technologies

CBC - Scotland Yard – NASSCOMGlobal Economic Crime Programme launched on Oct 20th

Emerging OpportunitiesFilm Co-production treaty

Treaties with Italy & UK

Tax breaks for film-production

Increased film financing

Film Distribution Networks

Technical Collaboration & Infrastructure Facilities

Emerging OpportunitiesSustainable Development Pact

Declaration signed in Oct with UK. Similar pacts are also progressing with EU

Collaboration to achieve globally agreed emission reduction targets

Scope for cleaner energy technologies

Public Private Partnerships

Emerging OpportunitiesComing Up….

IPR Agreement Research in Life-Sciences Space Defence

Increase in Textile related opportunities (Bra Wars)

Food & Agriculture(EU subsidies / Doha Round)

EICC – CBC Proposal CBC is doing major work in increasing EU-India bilateral

trade & investments

Policy inputs Technology Healthcare

Working Groups & Programmes New Technology Tourism & Civil Aviation LifeSciences including Pharma & BioTech Creative Industries Economic Crime Financial Services Manufacturing

Thanks - Join the Programmes

UK

Sanmit Ahuja

Head of India Affairs, CBC

Belgium

Sunil Prasad

Secretary General, EICC

Thank You

Dr. Mohan KaulDirector General

Commonwealth Business Council