Europe meets India:

“Global Partnership in Emerging Areas of EU – India Relations”

Nayan Patel, President

Indian Merchants Chamber

9th. 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 7th. India-EU Summit in Helsinki

Recent Events

Prince AndrewThe 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 EventsGuy Verhofstadt

Prime Minister of Belgium

India an upcoming economic & political powerTwo pronged agenda - Political & EconomicBelgium – gateway to European MarketsKnowledge Based Services, Logistics, Infrastructure & Aeronautics

India & Belgium signed bilateral social security agreement on 2nd. 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 MarketsKnowledge Based Services

Higher & Technical Education

Consumer & Retail Media & Entertainment

Healthcare

Sports

PowerOil & 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 BlairPrime 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