EUROPEAN BUSINESS GROUP IN INDIA SEEKING AALEP SUPPORT FOR FREE TRADE AGREEMENT

The Government of India and the European Union have been negotiating the conclusion of a comprehensive Free Trade Agreement since 2007. The European Business Group in India (EBGI), recognized by the Indian Government and the European Commission as the industry lobby representing the interests of European companies in India, has been a key promoter of a comprehensive free trade agreement between India and the European Union since its inception in 1997.

EBGI's membership is currently 350 strong and growing. It stretches across its Chapters in Delhi, Mumbai and Bangalore and represents European companies from across the EU, the European Economic Area and countries in accession negotiations with the EU. Its members are drawn from business houses across the spectrum including SMEs as well as large MNCs from all major industries.

The group in India works in partnership with the Delegation of the European Union in order to:

• serve as the representative body for European Business
• develop new businesses in India
• mentor European businesses
• improve the investment climate
• promote bilateral relations between the EU and India across the board
• improve the "ease of doing business" in India by influencing economic policy
• establish and sustain a level-playing field for EU companies in India

A swift conclusion of the long overdue Free Trade Agreement with India would undoubtedly provide a much needed impetus to the wilting European economy on the one hand while opening significant inverstment and trade opportunities in both regions for Indian and European firms on the other.

It is clear that Indo-European trade relations need a boost. While the EU continues to be India's largest trading partner with a volume of trade in goods and services of EUR 86 billion in 2010, its position has been continuously weakening over the last decade relative to India's other trade partners. This negative trend can be expected to accelerate as India continues to look east as well as towards Africa and South America both as markets but also as a source of much needed raw materials. The swift conclusion of a comprehensive free trade agreement between India and the European Union would therefore provide an impetus to propel commercial relations and improve the overall global business environment. Any further delay risks throwing the agreement off track with the result that India would focus increasingly on new markets to the detriment of European businesses.

The conclusion of the FTA will not only benefit businesses engaged in trade of goods and service, manufacturing etc. but it will also foster greater cooperation in all areas of business, culture, education, sciences, security and so on. The European Business Group in India full supports any initiative designed to raise awareness of the importance of India-EU relations both within the European Union and India in general and to expedite the conclusion of the comprehensive Free Trade Agreement in particular.

The European Business Group in India looks forward to working with the EU Delegation in India to support this objective as well as with AALEP and other stakeholders in Europe to promote the required sense of urgency and awareness amongst the decision-makers.