The Hindu : India, Romania for closer economic ties

Online edition of India's National Newspaper
Sunday, Feb 01, 2004

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India, Romania for closer economic ties

By Our Special Correspondent

NEW DELHI, JAN. 31. India and Romania today favoured further promotion of trade links in several areas, including pharma, information technology and engineering goods and help bring bilateral economic relations on a par with political ties between New Delhi and Bucharest.

While showcasing the success story woven by L.N. Mittal's Ispat group in the East European country, the Romanian President, Ion Iliescu, said his country was in the last leg of privatisation and reiterated its commitment to economic liberalisation. He indicated that Romania's expected accession to the European Union in 2007 could open new vistas for Indian businessmen in the region as his country could become a conduit for Indian companies in Central Europe.

Addressing a meeting organised by the Confederation of Indian Industry and the Federation of Indian Chambers of Commerce and Industry here, Mr. Iliescu said that there were about 180 companies in Romania which have Indian participation and yet there was enough scope for entrepreneurs from India to invest in the country clocking five per cent annual growth rate which was higher than any other nation in the region.

He said that despite having become an importer of gas and oil, his country had considerable expertise in petrochemicals and refineries. Agri-processing, agri-machinery and tourism were other potential areas for cooperation between the two countries.

The Romanian President said that due to the absence of a direct flight between India and Romania their official airline was passing through a difficult phase. He wanted the Indian aviation industry to address this concern.

The Minister of State for External Affairs, Vinod Khanna, hailed Mr. Iliescu's trip as a landmark one and suggested that industries from both countries strive to take the business relations on a par with the bilateral political relationship that had a strong historical bond.

The two countries had failed to explore the potential in trade which now stood at a low $ 73 million, the Minister said, adding that India should take advantage of Romania's strategic location as it could serve as a bridgehead to Central European countries.

The FICCI president, Y.K Modi, brought to the notice of the visiting dignitary the discrimination faced in Romania by the Indian pharma industry that had to get all its consignments checked "batch-by-batch" unlike others, besides paying an additional 10 per cent duty on their exports.

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