EU-India Strategic Relationship
Imperatives for Business
EICC-CBC-GOPIO Conference
Wednesday, Nov 9th 2005
European Parliament
Dr. Mohan Kaul
Director General
Commonwealth Business Council
EU-India Background
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Relationships dates back to 1963
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New meaning given to the relationship with EU
making India a Strategic Partner
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Action Plan has 4 chapters
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Political
Trade & Investment
Economic Policy
Cultural & Academic
6th EU-India summit concluded in Delhi in
September
EU-India Trade Highlights
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EU is India’s largest Trading Partner.
Bilateral Trade - € 33 billion in 2004.
17% increase from 2003
Exports to EU accounts for 25% of India’s exports
India ranks as EU’s 12th trading partner-1.7% of
the total EU trade.
India receives 25% of its FDI from EU
Main Import partners: Belgium (6.1%), United
Kingdom (4.6%), Germany(4.5%)
Main Export Partners: United Kingdom(4.8%),
Germany(4%)
UK-India Trade Highlights
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Trade in Goods £5bn+
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Trade in Services £1bn+
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UK is ranked at number 5 in the total FDI inflows to India.
Energy, Telecom & Invisibles.
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India – 2nd largest investor in the UK from Asia in terms of
number of projects, and the eight largest overall.
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60% of Indian investment into the EU comes via UK
Tip of the Iceberg
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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 Iceberg
So far wealth generation & capturing has happened in developed economies
Now it must be shared equally
What Indian Companies Need
Indian companies are moving up the value chain rapidly…but need marketing and
distribution partners in the west.
What European Companies Need
EU will not be able to innovate at the same rate, therefore must adapt to the new
Business 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
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Air Services Agreement
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Science & Technology Collaboration
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Space Collaboration
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Anti-Terrorism Co-operation
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Film Co-Production Treaty
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Sustainable Development Agreement
Emerging Opportunities
Air Services Agreement
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Expansion of passenger services – TOURISM BOOST
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New Routes
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Direct services between India-UK are set to triple this year
(56 weekly services between DEL/BOM-LHR route by winter this
year).
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Unlimited Cargo Services
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Guarantee on fair competition
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Removes the unnecessary restriction on pricing
Emerging Opportunities
Science & Technology
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Life sciences, genomic and biotechnology for
health
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Material Sciences
Nano-technologies
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Aeronautics & Space
India is now a partner in the Galileo project
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Capacity Building through collaboration with
universities
Emerging Opportunities
Anti-Terrorism Co-operation
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EU has allocated €200 million
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Major potential for Information Security
Technologies
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CBC - Scotland Yard – NASSCOM
Global Economic Crime Programme
launched on Oct 20th
Emerging Opportunities
Film Co-production treaty
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Treaties with Italy & UK
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Tax breaks for film-production
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Increased film financing
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Film Distribution Networks
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Technical Collaboration & Infrastructure
Facilities
Emerging Opportunities
Sustainable Development Pact
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Declaration signed in Oct with UK. Similar
pacts are also progressing with EU
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Collaboration to achieve globally agreed
emission reduction targets
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Scope for cleaner energy technologies
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Public Private Partnerships
Emerging Opportunities
Coming Up….
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IPR Agreement
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Research in Life-Sciences
Space
Defence
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Increase in Textile related opportunities
(Bra Wars)
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Food & Agriculture
(EU subsidies / Doha Round)
EICC – CBC Proposal
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CBC is doing major work in increasing EU-India bilateral
trade & investments
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Policy inputs
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Technology
Healthcare
Working Groups & Programmes
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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 Kaul
Director General
Commonwealth Business Council