New Delhi: EU Ambassador to India, Herve Delphin, emphasized that India's geostrategic and geo-economic importance is "more manifest," with growing business opportunities.

Speaking at the launch of the Federation of European Business in India (FEBI) in Delhi on Friday, Delphin highlighted the steady growth of EU-India trade and called for stronger trade ties between the two economies.

"The geostrategic and geo-economic importance of India had become more manifest, the opportunities for business more tangible. This has been reflected in the constant sustained growth of EU-India two-way trade, at an average rate of over 10 per cent a year," he said.

The event was attended by key figures, including Minister of Commerce and Industry Piyush Goyal, ambassadors, and industry leaders.

FEBI was introduced as the EU's official Chamber of Commerce in India, tasked with advocating for European businesses operating in the country and promoting closer trade relations.

"Today the EU is the largest trading partner of India in goods, accounting for 12 per cent of India's total trade. The EU block is one of the leading trading partners in services. It is also one of the main sources of FDI in this country, representing 21 per cent of total FDI to India," Delphin highlighted.

He further noted that European companies play an increasingly important role in India's economy. There are about 4,500 EU companies present in India, which directly or indirectly give jobs to 6.7 million Indians.

"These are usually high quality and well-paid jobs. Most of these companies are led by Indian managers and draw on Indian talent. They not only create high-quality jobs, but contribute to India's economic growth, investments, exports, increase productivity of Indian economy, bring know-how, develop human resources and foster innovation," he added.

"They come to India, they invest in India, they 'Make it in India'. European companies will play their part and contribute to India achieving its goals of becoming a manufacturing hub and a developed country," he emphasized.

He explained that FEBI's main mandate is to bring the voice of the European business and carry out policy advocacy vis-a-vis the Indian Government but also the European Governments on what could foster a friendly pro-business environment and what business opportunities they envision.

"In a world of diversification and de-risking of supply chains, India has every interest in positioning itself as the preferred "place to go" to. This can be achieved by maximising the success stories of European businesses in India but also by addressing issues that constrain European businesses such as e.g. Quality Control Orders, stringent import licenses or local content requirements, legal uncertainties regarding investment protection, taxation," Delphin said.

Addressing this, would result in increased European investment in India, more manufacturing, and more jobs. Delphin emphasized that alongside the FTA, the Investment Protection Agreement, and the Trade and Technology Council (TTC), FEBI stands as a cornerstone of the EU-India economic agenda. "That is the reason why FEBI is a 'force multiplier' and 'win-win' enterprise," he remarked.

He noted that considering the respective sizes of the EU (the 2nd largest economy) and India (the 5th largest), EU-India dual trade should be at least twice if not three or four times higher than what it is at present.

"We should move from current EUR 120 billion to 250 or 300 billon easily or even 500 billion per year. Unlike with its other big trading partners, India has a trade surplus with the EU meaning that it exports more than it imports (with more than 17 per cent of India's exports going to the EU). Expanding trade will be good for India in the first place," he said.

He stressed that, "trade can indeed increase if, together we establish the right conditions for the EU-India economic and commercial ecosystem to flourish."

"As you know, the 9th round of the FTA negotiations took place in Delhi two weeks ago. The 9th in the space of two years, which is quite unprecedented by our standards. Yet, despite the best efforts of the negotiating teams, progress has been marginal. Fundamental differences are yet to be overcome," he said.

"Recalibrating does not mean aiming at a cheap, low-cost version of an FTA. Interest for both sides should be a meaningful FTA," he added.

Delphin called for both parties to explore mutual concessions in trade policy, noting that "The EU will be ready to do its share, but this will also require India to cover a large part of the distance that still separates us for the time being."

This report is auto-generated from a syndicated feed