‘EU invests 100 million dollars per annum in India’

The European Union invests $ 100 million annually in India in infrastructural development areas like telecommunications and automotive sectors. This was informed by Finnish Ambassador Benjamin Bassin during a lecture on ‘Doing Business with the European Union’ here at the Gujarat Chamber of Commerce and Industry on Friday. Highlighting the economic relations between the EU and India he said the compounded average annual growth of trade between India and EU has been to the tune of 135 per cent"’ 1999.

He said India is the largest beneficiary in terms of customs duty reduction in EU. However, he said India’s trade proportion with EU is much greater than EU's with India. In terms of exports India ranks 20th in the EU list and 18th in the imports whereas EU is second in terms of exports and imports for India, next only to the US. Highlighting other aspects of the EU, he said by January 1, 2002, Euro would have a physical existence and by June 1, 2002 all the member countries, except four, would discontinue their domestic currencies. He said the four countries not to be a part of Euro included the UK, Denmark, Sweden and Greece. Britain has its domestic reasons for non-participation and Denmark and Swedish economies are dependent on UK’s economy. The weak economy of Greece and the high rate of inflation led to its exclusion in the Euro.

Bassin says the EU is suffering from democracy deficit, but the things are all set to improve as the member nations grow in number. He informed that within three years, Poland, Czech Republic, Hungary and Estonia would also become EU partners.

This union is soon to expand its membership up to 30 countries. GCCI chairman Mukesh Patel raised his doubts about the treatment meted out to the Indian entrepreneurs by the EU. He said the anti-subsidy and anti- dumping investigations, technical and health standards and a host of other protectionist measures of the EU effectively denied full market access to the Indian companies.

Compiled from local news media.