Europe meets India: “Global Partnership in Emerging Areas of EU – India Relations” Nayan Patel, President Indian Merchants Chamber 9 th. November 2006

Introduction 2006 marks 43 years of formal EU-India relations India and many countries of the EU have shared strong historical, trade and economic relations Comprehensive Economic Cooperation Agreement (CECA) with the EU

Recent Events INDIA CALLING 2006 – Leveraging the India – UK Business Relationship - London EU is India’s largest trading partner EU is also the leading investor in India and a major destination for Indian investors UK is now the third biggest investor in India India is the second largest foreign investor in the UK The EPFIN Group is in India to strengthen India EU Partnership The 7 th. India-EU Summit in Helsinki

Recent Events Prince Andrew The Duke of York  Described India as a better investment destination for British companies than China.  India had an advantage for British investors because of the common language, the existence of rule of law and democracy  People should not be afraid of outsourcing: they should embrace it.  Technology, education and values of Indian BPOs contributed to the success of British Companies

Recent Events Guy Verhofstadt Prime Minister of Belgium  India an upcoming economic & political power  Two pronged agenda - Political & Economic  Belgium – gateway to European Markets  Knowledge Based Services, Logistics, Infrastructure & Aeronautics India & Belgium signed bilateral social security agreement on 2 nd. November 2006

What India is looking for? Better recognition of Certification for Degrees Free mobility for Service Providers Jobs for rising pool of Technologists

What the EU wants? Greater access to Industrial Goods Reduction in Import Duties Liberalization of Financial Sector

To bridge this Gap  High level group on trade, co-chaired by Indian Commerce Secretary and his EU counterpart to meet in December on the Trade & Investment Agreement  London Stock Exchange (LSE) wooing Indian companies

India’s Growth Stories India retains a robust growth outlook. The long tem growth is expected to be still brighter India ranks 43 in Global Competitiveness Index

Emerging Opportunities Urban Infrastructure & Roads Finance & Banking Commodity Markets Knowledge Based Services Higher & Technical Education Consumer & Retail Media & Entertainment Healthcare Sports Power Oil & Gas

India’s Growth Stories Series of acquisitions by Indian companies indicates that Indian corporates are fast taking global leadership position Indian firms have acquired 307 companies worth over $20 billion India is thus set to become a net FDI exporter

India’s Demographic Dividend India’s population is over 1 billion, 400 million are estimated to be middle class consumers India offers a young vibrant market with 54% of the population less than 25 years of age Domestic consumption of goods and services set to double over the next 10 years Number of households with high income estimated to increase by 60% in next four years to 44 million

EU’s Initiatives Radical strategy for energy market Unified VAT tax in EU – India needs to learn Reduction in the cost of trading shares between bourses in the 25 member states Ushering in a PAN-European Securities Market

EU’s Initiatives “The country has to remain a leader in innovations to prevent research funds migrating to emerging economies such as India & China” Tony Blair Prime Minister of UK

Concluding Remarks IMC interested in intensifying India-EU interactions India and the EU have much to contribute towards fostering a rule, based on international order Common challenges — globalisation, terrorism, energy security and environment

Concluding Remarks Need to upscale and bridge the skill gaps of the Indian workforce - an area where EU could be of great help IMC has initiated a Value Added Vocational Training Program Setting up of an EU Information Desk & Trade Facilitation Centre under the aegis of TIDP, sponsored by EU and Govt. of India

IMC’s Objective To build a strategic business partnership between India and the EU Project select countries in EU and India as attractive investment destinations Encourage technical collaborations and joint ventures Motivate expatriate Indians to participate in building a powerful, modern and vibrant India

Future India is changing… There is a ‘can do’ attitude and a confidence that India can match the best in the world All this is just a beginning in India’s long road ahead in the 21st century world economy…

We are working hard to evolve a new Indian economy involving 1.1 billion people in which the entire world has a stake… We invite you to join us in this exciting journey

Thank You