New Delhi: India’s expanding economic force and its “Make in India” initiative arouses greater interest from European companies, which consider the country as a key partner for growth, jobs and investments.
Explaining during the second annual general assembly of the European Affairs Federation in India (February), Herve Delphin, Ambassador of the European Union delegation to India, stressed that India is already hosting a large European commercial footprint and that a free trade agreement (ALE) could unlock even more opportunities.
According to a new survey in February, more than 6,000 European companies operate in India, creating more than three million jobs. These companies invest not only, but also manufacture, innovate and export from India, directly contributing to the “Make in India” vision of Prime Minister Narendra Modi.
“EU companies perceive India as an attractive market, a market with challenges but also which offers enormous opportunities. While benefiting from these opportunities, EU companies also make substantial contributions to the Indian economy. They create jobs, invest, manufacture and innovate in India. In short, they “do in India”, said the sending.
The European Union remains the largest trading partner in India, the trade in goods reaching 120 billion euros, before the United States and China. Including the services, the bilateral trade received 180 billion euros, by the February statement.
Delphin stressed that despite strong numbers, there is “an enormous unexploited potential” since the EU and India are the second and fourth world economies.
The ambassador mentioned that to unlock this unexploited potential, “the EU and India negotiate the FTA”.
With the 14th round of the ALE negotiations should start on October 6 in Brussels, the European side stressed that an agreement would make a significant boost to the investment flows and the cooperation of the supply chain. “With an ALE, it could be much more important. Eighty percent of EU companies said they would increase investments and jobs in India,” said the Delphin.
President Ursula von der Leyen and Prime Minister Narendra Modi have already set an objective to conclude the agreement by the end of 2025. “The EU was and is still ready to conclude on a significant package. We are impatiently awaiting the next round and additional negotiations to a mutually beneficial agreement,” added the official.
In addition to the ALE, the two parties negotiate an investment protection agreement designed to create a foreseeable and secure environment for investors. The agreement will protect the right of states to regulate while providing clarity to businesses.
The EU recently unveiled a new EU-Indian strategic program linking prosperity, sustainability, technology, defense and mobility. The proposals include innovation centers, blue valleys for value chains, TTC 2.0 on critical supply chains and a gateway office to facilitate the mobility of ICT workers.
The manager noted that the history of India’s growth is at the heart of the economic vision of Europe. “February and the entire European affairs community in India are part of the history of India’s growth as well as the EU-India partnership.”
While India marked Navratri this week, the EU ambassador described him as a “auspicious sign” for a stronger partnership. (Ani)
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