EU-India Trade and Investment Development programme was conceived in 2003 with the objective of fostering trade and investment between the European Union and India. The programme was started in India in 2006 and will be concluded by 2007 December 31st. Under the programme, Investment Facilitation Desks (IFD’s) have been established in Delhi, Mumbai, Kolkata and Chennai to serve as a one point contact for European business desiring to enter India and PricewaterhouseCoopers has been appointed as the consultant by the European Commission for the establishment of the IFD’s
The focus of the entire programme is to improve the economic environment in India and also to facilitate more trade and investment between the two regions. The programme have also a pivotal role in creating better employment opportunities and thereby addressing the core issue of poverty in India. The booming India’s economic Environment have thrown open the door of opportunities to the members of the European Union. With the India Global trade reaching a staggering US$ 305 billion in 2006, the share of the European Union members is abysmally low at US $ 47 billion. Among the European Union members the FDI Investments into India is concentrated among UK, France, Germany, Holland and Denmark. The programme also includes facilitating better FDI flows from the other members of the European Union apart from the members mentioned above.
The meeting in Bangalore was attended by the representatives of the European countries Trade offices, representatives of the Industry and trade consultants
Some of the issues of concern raised by the participants during the meeting are as follows
The investment climate is clouded with issues like infrastructure bottlenecks effecting the flow of investments into India
The STPI Concept has attracted many of the European firms to invest in India mainly in the Software sector.
There is no clarity on Special Economic Zones (SEZ’s )
Acquisition of land for industrial activities have become little problematic in certain states in India which can effect the flow of investment
The caps on FDI in India in certain high performing sectors like telecommunication, aviation etc can effect long term investments.
The desk has to facilitate more of investment into SME sector in India which has the potential to be the center of the investment spectrum.
Renewable Energy and carbon trading has been identified as one of the core sector which can drive the economic cooperation between India and the European Union
The Single Window clearance which facilitates investment is also clouded with delays.
The Education infrastructure in India has to be improved.
One of the statistics in the event showed that compared to 600 Danish companies operating in China only 70 companies are operating in India.
Skill shortages are seen in some sector which can derail the competitiveness.
The sectors identified for strengthening the Economic and Trade relations between India and European Union are
Textiles
Auto components
Pharmaceuticals
Biotechnology
It/ITES
Agriculture
Food Processing
Renewable Energy
Waste water Management
The focus of the entire programme is to improve the economic environment in India and also to facilitate more trade and investment between the two regions. The programme have also a pivotal role in creating better employment opportunities and thereby addressing the core issue of poverty in India. The booming India’s economic Environment have thrown open the door of opportunities to the members of the European Union. With the India Global trade reaching a staggering US$ 305 billion in 2006, the share of the European Union members is abysmally low at US $ 47 billion. Among the European Union members the FDI Investments into India is concentrated among UK, France, Germany, Holland and Denmark. The programme also includes facilitating better FDI flows from the other members of the European Union apart from the members mentioned above.
The meeting in Bangalore was attended by the representatives of the European countries Trade offices, representatives of the Industry and trade consultants
Some of the issues of concern raised by the participants during the meeting are as follows
The investment climate is clouded with issues like infrastructure bottlenecks effecting the flow of investments into India
The STPI Concept has attracted many of the European firms to invest in India mainly in the Software sector.
There is no clarity on Special Economic Zones (SEZ’s )
Acquisition of land for industrial activities have become little problematic in certain states in India which can effect the flow of investment
The caps on FDI in India in certain high performing sectors like telecommunication, aviation etc can effect long term investments.
The desk has to facilitate more of investment into SME sector in India which has the potential to be the center of the investment spectrum.
Renewable Energy and carbon trading has been identified as one of the core sector which can drive the economic cooperation between India and the European Union
The Single Window clearance which facilitates investment is also clouded with delays.
The Education infrastructure in India has to be improved.
One of the statistics in the event showed that compared to 600 Danish companies operating in China only 70 companies are operating in India.
Skill shortages are seen in some sector which can derail the competitiveness.
The sectors identified for strengthening the Economic and Trade relations between India and European Union are
Textiles
Auto components
Pharmaceuticals
Biotechnology
It/ITES
Agriculture
Food Processing
Renewable Energy
Waste water Management
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