India is hopeful about signing the Free Trade Agreement (FTA) with European Union (EU) and is encouraging the other side to finalise the details of this deal, which it says should benefit the two dwindling economies. Both parties have different views regarding the duties on car imports, with the Indian tariff being at least ten times that of the European tariff on imports from India. They also have conflict over the access to EU market by Indian software companies.
At Antwerp, Belgium, Indian Trade Minister, Anand Sharma, said, "For us the services sector is very, very important. We recognise the interest of the EU on wines and spirits, on automobiles." He further added, "So it's not that there is a lack of recognition. It is fine-tuning the details that is on the table. It is not the substantive issues at all... Most of the issues stand concluded to the best of my understanding."
Sharma hinted that he will be meeting the European Trade Commissioner, Karel De Gucht on June 26, 2012 to discuss the progress. The third largest economy after China and Japan in Asia, India has been witnessing boom in the IT and outsourcing for over 20 years. This is despite the fact that manufacturing process has slowed down due to red taping and outdated infrastructure. According to Sharma, India is focussing on a 26 per cent growth in the manufacturing share of Gross Domestic Product (GDP) within ten years. The share currently stands at 16 per cent and will receive an investment worth USD 1 trillion in next five years to develop the infrastructure.
As per the trade minister, he can foresee overseas manufacturers investing in both sectors, especially in the planned industrial sites. The FTA will assist the emerging companies in the country to expand their horizons into the EU, which is the largest trading partner to the country. EU had brought Indian goods and services worth 40 billion Euros in 2010 and is now eyeing the diverse youth market of 1.3-billion-strong possible customers of India.
The negotiations on the trade agreement started back in 2007 and the parties decided that the agreement would be finalised by the end of 2012. The trade minister is quite optimistic about sealing the deal with the EU; however, he refrained from revealing any particular time frame for the same. He laid emphasis on the need for a FTA considering the economic turbulence faced by both the sides. He stated, “An ambitious free-trade agreement between the European Union and India will be the best message that the global economy can have in the challenging times.”
As per the trade minister, he can foresee overseas manufacturers investing in both sectors, especially in the planned industrial sites. The FTA will assist the emerging companies in the country to expand their horizons into the EU, which is the largest trading partner to the country. EU had brought Indian goods and services worth 40 billion Euros in 2010 and is now eyeing the diverse youth market of 1.3-billion-strong possible customers of India.
The negotiations on the trade agreement started back in 2007 and the parties decided that the agreement would be finalised by the end of 2012. The trade minister is quite optimistic about sealing the deal with the EU; however, he refrained from revealing any particular time frame for the same. He laid emphasis on the need for a FTA considering the economic turbulence faced by both the sides. He stated, “An ambitious free-trade agreement between the European Union and India will be the best message that the global economy can have in the challenging times.”
