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Belgium can serve as the gateway to Europe for India as uncertainty grips the terms of Britain’s exit from the European Union, said the Belgian Ambassador to India Francois Delhaye.
Speaking at the ‘Invest in the gateway to Europe: Belgium’ conference jointly organised by the Belgian Embassy and FICCI on Thursday, Delhaye said: “We do not know which form it (Brexit) will be. It will probably have a profound impact on the European Union.”
BusinessLine was the media partner for the event.
Brexit is expected to have a huge impact on the EU, which is a single market. For instance, goods could become more expensive as they move from the UK to the EU, and vice versa. EU member- countries are vying for investment as Brexit nears.
With Brexit on the horizon, Delhaye said, “Many companies are hedging against what is happening and are looking at secondary locations in Europe. Belgium has a lot to offer.”
Areas of partnerships
Belgium is one of the more open countries in the world and is well-connected to other parts of Europe. After Germany, Belgium is the second largest partner of India among EU countries. The total bilateral trade between the two countries is €12.6 billion, as per figures furnished by the Belgian government. Exports from Belgium to India represent €7.9 billion and India to Belgium is close to €4.7 billion.
In addition there are 175 Belgian companies in India and over 1,500 interacting with India. Around 80 Indian companies are located in Belgium, and are active in various sectors.
While most of these export activities are driven by sectors such as automation industry, pharmaceuticals, chemical industry, diamond trade, machinery and equipment, there is scope for more diverse industries.
There are many areas where the two countries could form partnerships. The Belgian food industry is booming. It leads in system quality control and food safety systems throughout the food chain from frozen vegetables to quality meat products and plant-based alternatives.
Business in Belgium
Recently a joint-venture partnership was signed between a Flemish and an Indian company for the production and processing of Flemish potatoes.
Alexis Bossuyt, Trade and Investment Commissioner, Flanders, Invest and Trade, said India is one of the largest producers of fruits, vegetables, cereals and marine products. “While India could grow as a ‘global sourcing hub’, Flanders could serve as a ‘global distribution hub’ and a gateway to the European market for processed food items.” Flanders Food Pilot Project plays an important role in customisation of Indian processed food items for their acceptance in the European market.
But how easy is it to set up a business in Belgium? Babette Desfossez, Customs Attache, said: “It takes only a week to open a company. One needs to come to Belgium only once to open a bank account. The rest can be done by representation.” This is complemented by fiscal policy such as double tax avoidance regime and tax incentives for research, development and innovation.
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