The Hindu Business Line : India, Italy see scope to expand trade

BILATERAL TALKS: Mr Kamal Nath, Minister for Commerce and Industry, and Ms Emma Bonino, Italian Minister for International Trade and European Affairs, at a bilateral meeting in the Capital on Friday. — Kamal Narang

New Delhi , Jan. 5

India and Italy emphasised on Friday the need to move forward to begin negotiations for a trade and investment agreement between India and the European Union as decided at the Helsinki Summit in October 2006.

The visiting Italian Minister for International Trade and European Affairs, Ms Emma Bonino, had extensive bilateral talks with the Union Commerce and Industry Minister, Mr Kamal Nath, on Friday, with both sides underscoring the scope for a much higher level of trade and economic engagement between the two countries.

Ms Bonino's visit is designed to lay the groundwork for the visit of the Italian Prime Minister to India next month with a strong contingent of 400-business delegation.

Only for trade

The Italian Minister endorsed Mr Nath's view that the proposed India-EU trade and investment pact was meant strictly for trade and investment and therefore, extraneous elements should not be brought into it as there were other fora to deal with such issues.

From India's perspectives, Mr Nath raised the issue of difficulties encountered by Indian professionals and businesspersons in obtaining visas and work permits to Italy to which Ms Bonino assured that the matter would be resolved soon. The Italian Minister also drew Mr Nath's attention to the delay in the issue of visas to businesspersons and visitors to India from Italy.

Pointing out the importance of infrastructure in India as a big business opportunity, Mr Nath urged the expeditious setting up of a joint working group on infrastructure. Ms Bonino indicated that cooperation in infrastructure would indeed be a focus area during the forthcoming visit of the Italian Prime Minister.

Italian investments

Mr Nath said that India would welcome Italian investments in setting up institutes of design, especially in the textiles, leather and jewellery sectors, which would enable both sides to capitalise on their synergies by upgrading design capabilities in these key areas. Both the ministers also took note of the vast opportunities for cooperation in the small and medium enterprises .

Italy is India's fourth largest trading partner in the EU and bilateral trade has shown a robust growth of about 20 per cent for the past two years. In 2005-06, bilateral trade amounted to $4.3 billion. Sectors identified for enhanced cooperation include leather, agro-food, gems and jewellery, auto components, textiles and garments.

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