EU-India summit to focus on business ties

The EU-India summit in New Delhi next week (30 November) will focus on business ties, which have greatly increased in recent years, rather than on political issues, according to EU officials involved in drafting the agenda.

But while trade between India and the EU has ‘exploded’ over the past years - it reached some €40 billion last year and is evenly balanced between exports and imports - the relationship remains lopsided. The EU is India’s most important source of foreign direct investment, but investments in India amount to less than 0.5% of the EU’s global investments and the picture is similar on trade, which is far below what it could be, according to EU officials.

The two sides have held two rounds of preparatory talks on a free trade agreement they hope to conclude next year, though no timetable exists. The removal of trade barriers could lead to a doubling of the trade volume within a few years, the deputy head of the EU’s mission in New Delhi told a conference earlier this month.

India and the EU also hope to sign a landmark science and technology agreement at the summit.

Political issues likely to be discussed include India’s neighbours Pakistan and Myanmar (formerly Burma), both of which are in the throes of political crisis.

Commission President José Manuel Barroso will attend the summit together with Trade Commissioner Peter Mandelson. India will be represented by Prime Minister Manmohan Singh, Foreign Minister Shri Pranab Mukherjee and Commerce and Industry Minister Shri Kamal Nath.

The EU-India summit in New Delhi next week (30 November) will focus on business ties, which have greatly increased in recent years, rather than on political issues, according to EU officials involved in drafting the agenda.