Strengthening India-European Union ties

The Seventh India-EU Summit starting in Helsinki is likely to take up the issue of a Free Trade Agreement between the two partners which has since long been sought by business communities of both the blocs.

It’s high time that the Joint Working Group between India and EU started negotiations on a Free Trade Agreement considering the fact that the European Union remains India’s largest trading partner, accounting for 21.77 percent of India’s exports and 18.33 percent of total Indian imports as on 2003-04.

I feel that India's stronger international role and fast economic growth can help in providing a new foundation for cooperation with the Union.

However we should bear in mind that although international trade can be a powerful driver of economic growth, the exim communities should not expect an instant-coffee miracle. The governments too should look into trade reforms which are complementary to development policies.

I strongly feel that India needs to focus critically on building a business environment that deepens integration with the world economy in a widening range of manufacturing and services.

Differences in some sectors still exist and these can only be done away if both parties engage themselves in more systematic trading.

EU has now understood the vast business potential of India as fast-paced economic power and if both parties come together to create the necessary funds for infrastructure and social development programmes it will definitely be profitable for all.

Bilateral ties, though at the nascent stage, have huge potential and if India succeeds in doing away with cumbersome regulatory procedures and a poor infrastructure, I have no doubt in my mind that European investors will flock the country in thousands.