The Hindu : National : India-E.U. parliamentary forum launched

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Sunday, Apr 03, 2005

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India-E.U. parliamentary forum launched

By Our Diplomatic Correspondent

NEW DELHI, APRIL 2. The External Affairs Minister, Natwar Singh, today launched the India-European Union Parliamentary Forum at a function organised at the FICCI headquarters.

The launch of the forum, an important initiative, came at a time when the E.U. completed the largest enlargement in its history. "India and the E.U. are the largest democracies in the world. It is only fitting that our parliamentarians should maintain close and regular contacts," he said.

Mr. Singh said enhanced interaction between the two parliaments would help in a better understanding of each other's views. "It will also encourage greater understanding of each other's working methods and scope of responsibilities."

He said the E.U. enlargement made Europe virtually the world's largest economy with a population of 450 million.

"The E.U. is already India's largest trading partner, accounting for 26 per cent of our exports and 25 per cent of imports." "It is also one of our major sources of foreign direct investment, with countries such as the United Kingdom, Germany, France, Belgium, Italy and the Netherlands accounting for a large proportion of the investment. Trade and investment relations between India and the E.U., though sizable, are still far below potential."

The economic reforms in India threw up significant opportunities for investment in power, development of ports and inland waterways, road and airport construction and food processing.

"Europe has been an industry leader in many of these sectors. European companies should take the lead in accessing the opportunities offered by these sectors. ... Indian business, on the other hand, needs to demonstrate some deft footwork ... by suitably adapting their commercial networks and product and marketing strategies to the emerging economic geography in Europe."

Mr. Singh said that as India integrated itself more and more with the global economy, foreign trade would increasingly become an important driving force of its economic growth.

"Increased trade and investment flows between India and the E.U. is critical to this process, as well as to the enhanced relationship we wish to build [with the Union]."

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