The Hindu Business Line : ‘Indo-EU trade potential not fully tapped’

Kolkata, Oct. 13 Dr D. Kebschull, Chief Coordinator of the €13.3-million (Rs 78 crore) EU-India Trade and Investment Development Programme (EU-India TIDP), said here today that while the EU accounts for 25 per cent of India’s FDI approvals and 13 per cent of actual FDI inflows, it makes up less than 0.02 per cent of EU’s total FDI outflow.

Pointing out that the untapped potential of Indo-European business prospects was enormous, he said while the basic infrastructure in India has to be world class to attract greater investments, the private sector too needs to do much more.

Delivering the chief guest’s address at a workshop on “Intellectual Property Rights”, organised by EU-TIDP jointly with the Institute of International Trade here, Dr Kebschull said India needs to strengthen its trade position in the traditional markets like EU, especially when China can emerge as a major competitor. He also suggested that there was an urgent to create greater awareness among Indian businessmen to EU standards, like E-marking. Trade and investment needs confidence, especially with regard to protection of Intellectual Property Rights, he further added.

Earlier, in his introductory remarks, Mr A. Sahasranamam, Advisor to TIDP, said some of the important areas for TIDP were the Indian regulatory infrastructure and the testing facilities for products (processed foods and agri commodities) being exported into EU, information assistance to foreign investors through TIDP’s Investment Facilitation Desk and the Customs administration. He said a modernised customs administration was a key component from the point of view of foreign investors.

Intangible assets

According to Dr D.R. Agarwal, Director, Institute of International Trade, intellectual property management was growing in significance as the value of intangible assets contributed to as high as 74 per cent of the total consideration in the recent mergers and acquisitions. Quoting World Bank studies, he said intangible assets comprise nearly 80 per cent of the global wealth in developed economies.

Citing the intangible intellectual wealth, which is manifest in the form of invention, technology, patent, trade mark and copyright, he said as per published global data, copyright revenues alone at $1.4 trillion contributed to around 11 per cent of the US GDP growth ($12 trillion), and almost double of India’s aggregate GDP in 2005.