The Hindu Business Line : Getting Europe `ready' for investments in India

The original event, which will be held in New Delhi from March 24-26, has been organised by the European Commission in collaboration with the Confederation of Indian Industry (CII) under the auspices of `Euro India 2004 Co-Operation forum on the Information Society Technology'. This week's event here was organised to provide insight into business and cultural perspectives of India.

India has aroused wider expectations among the European business houses and investors and is seen gaining fast access.

According to the European Commission handout, the Indian economy currently ranks as the fifth largest economy in the world. It is already ranking above France, Britain, Italy and Russia, according to current indicators based on PPP — purchasing power parity. India has third largest GDP in Asia after Japan and China.

Hence, for average European business houses the prime attraction in India is the emergence of some 300 million consumers of branded consumer goods and this is growing at the rate of eight per cent per year. It is also stated that demand for certain consumer goods is growing at twelve per cent per year.

There is special European interest in drug and pharmaceutical industry, Information technology and infrastructure sectors. This is followed by telecom, engineering, and defence sectors, where European companies are scouting for Indian collaborators in joint ventures.

The current Euro-Indian two-way trade is hovering around the $25-billion mark and this is rated as `fairly modest' compared to plus $150 billiontwo-way EU trade with China.

The various European participants at the seminar pointed out that the common use of English language throughout India is a `prime' attraction for the European investors. This is followed by western system of governance based on rule of law and multi-party democracy. The European businesses are at home with Indian practice of commerce, judiciary and even accounting based on western principles. This criteria is rated as an `added and special' advantage for India. According to European analysts, the Indian GDP growth may hover between six and eight per cent per annum, which compares favourably with GDP growth in China.

The Euro India 2004 has been structured for Indian and European business houses to find common areas of investment and possible collaborations. Although, participation in seminar will be free, the participants are to pay for their travel and hotel expenses.