The Hindu Business Line : India, Sweden agree to catalyse cooperation in trade, academia

Strengthening ties: The Union Minister of Commerce and Industry, Mr Kamal Nath, with the Sweden Trade Minister, Ms Ewa Bjorling, at a meeting in the Capital on Monday.

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New Delhi, March 31 India on Monday sought active cooperation from Sweden in the field of higher education, besides identifying complementarities in high-tech areas of IT, biotech, automotive industry and electronics.

At the bilateral meeting between the Union Commerce and Industry Minister, Mr Kamal Nath, and the visiting Swedish Minister of Foreign Trade, Ms Ewa Bjorling, here, it was agreed that the two countries should catalyse cooperation by involving industry, academia and local universities.

Both sides discussed the development of trade and economic relations. Expressing his appreciation for the Swedish government’s desire for enhanced engagement with India, Mr Nath highlighted: “Sweden has strong interest to deepen and diversify relations with India, especially in the area of trade and economic development, as also in frontier areas of high technology”.

Trade talks

Mr Nath expressed satisfaction that based on the recommendations of the High Level Trade Group, both sides have started negotiations for a broad-based Trade and Investment Agreement and two rounds of fruitful negotiations have already been held between India and the EU. As regards the Indo-Swedish Joint Commission, Mr Nath stated that he recognises the importance of early holding of 15th meeting of the Joint Commission in 2008.

Underlining India’s liberalised overseas investment norms, Mr Nath said that more than 13 Indian IT companies have their offices in Sweden. Wipro, TCS, Infosys, and L&T among others have bagged important projects in Sweden. Some of them have their development centres in Sweden and their cumulative exports are estimated at $80 million. A few Indian pharma companies have also formed collaborative relations to establish joint R&D facilities in Sweden.

Doha Round

On the issue of multilateral trade, Mr Nath informed the Swedish Minister that India looks forward to the conclusion of the Doha Round by 2008. “India has been engaging constructively and actively with other fellow member countries of the WTO towards this end. For India, it is important that the Doha Round negotiations are brought to a successful conclusion. Such a conclusion can only be possible if we are faithful to the mandate and the outcome reflects a clear balance between market opening and the development needs of the majority of the membership. India is ready to show the necessary flexibility to achieve such an outcome but the onus for movement lies largely with the developed countries,” he said. The bilateral trade between India and Sweden in 2006-07 was $2,322 million, compared to $1,498 million in 2005-06. The main export items to Sweden include readymade garments, cotton, manufactures of metals, cotton yarn, and fabrics, machinery and instruments, and carpet. The major import items from Sweden include electronic goods, computer software in physical form, machinery except electrical and electronics, gold and iron and steel.

FDI inflows

Sweden ranks 13th and cumulative FDI inflows (net of ADRs/GDRs) from Sweden is $561.9 million (0.87 per cent), excluding FDI inflows received for acquisition of existing shares (up to 1999), RBI’s NRI Schemes, stock swapped and advance pending for issue of shares.

Top sectors attracting FDI inflows (from January 2000 to October 2007) from Sweden are miscellaneous mechanical and engineering industries (21.27 per cent), electrical equipments (including computer and pharmaceuticals (9.84 per cent), industrial machinery (6.88 per cent) and electronics (5.73 per cent), an official release said here.

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