1. EU-India Strategic Relationship Imperatives for Business EICC-CBC-GOPIO Conference Wednesday, Nov 9 th 2005 European Parliament Dr. Mohan Kaul Director General Commonwealth Business Council

2. EU-India Background Relationships dates back to 1963 New meaning given to the relationship with EU making India a Strategic Partner Action Plan has 4 chapters Political Trade & Investment Economic Policy Cultural & Academic 6 th EU-India summit concluded in Delhi in September

3. EU-India Trade Highlights 1. EU is India’s largest Trading Partner. 2. Bilateral Trade - € 33 billion in 2004. 3. 17% increase from 2003 4. Exports to EU accounts for 25% of India’s exports 5. India ranks as EU’s 12 th trading partner-1.7% of the total EU trade. 6. India receives 25% of its FDI from EU 7. Main Import partners: Belgium (6.1%), United Kingdom (4.6%), Germany(4.5%) 8. Main Export Partners: United Kingdom(4.8%), Germany(4%)

4. UK-India Trade Highlights Trade in Goods £5bn+ Trade in Services £1bn+ UK is ranked at number 5 in the total FDI inflows to India. Energy, Telecom & Invisibles. India – 2 nd largest investor in the UK from Asia in terms of number of projects, and the eight largest overall. 60% of Indian investment into the EU comes via UK

5. Tip of the Iceberg 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)

6. 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

7. Major Progress Air Services Agreement Science & Technology Collaboration Space Collaboration Anti-Terrorism Co-operation Film Co-Production Treaty Sustainable Development Agreement

8. Emerging Opportunities Air Services Agreement Expansion of passenger services – TOURISM BOOST New Routes Direct services between India-UK are set to triple this year (56 weekly services between DEL/BOM-LHR route by winter this year). Unlimited Cargo Services Guarantee on fair competition Removes the unnecessary restriction on pricing

9. Emerging Opportunities Science & Technology Life sciences, genomic and biotechnology for health Material Sciences Nano-technologies Aeronautics & Space India is now a partner in the Galileo project Capacity Building through collaboration with universities

10. Emerging Opportunities Anti-Terrorism Co-operation EU has allocated €200 million Major potential for Information Security Technologies CBC - Scotland Yard – NASSCOM Global Economic Crime Programme launched on Oct 20 th

11. Emerging Opportunities Film Co-production treaty Treaties with Italy & UK Tax breaks for film-production Increased film financing Film Distribution Networks Technical Collaboration & Infrastructure Facilities

12. Emerging Opportunities Sustainable Development Pact Declaration signed in Oct with UK. Similar pacts are also progressing with EU Collaboration to achieve globally agreed emission reduction targets Scope for cleaner energy technologies Public Private Partnerships

13. Emerging Opportunities Coming Up…. IPR Agreement Research in Life-Sciences Space Defence Increase in Textile related opportunities (Bra Wars) Food & Agriculture (EU subsidies / Doha Round)

14. EICC – CBC Proposal CBC is doing major work in increasing EU-India bilateral trade & investments Policy inputs Technology Healthcare Working Groups & Programmes New Technology Tourism & Civil Aviation LifeSciences including Pharma & BioTech Creative Industries Economic Crime Financial Services Manufacturing

15. Thanks - Join the Programmes UK Sanmit Ahuja Head of India Affairs, CBC Belgium Sunil Prasad Secretary General, EICC

16. Thank You Dr. Mohan Kaul Director General Commonwealth Business Council