Ministry, Ficci plan initiatives to tap European markets
Tina Edwin
New Delhi, Jan 23: The commerce ministry plans joint initiatives with the Federation of Indian Chambers of Commerce & Industry (Ficci) to explore opportunities for business and trade with countries in east Europe and central Europe.The two feel India should use these countries as a platform to gain access to west European markets, who have imposed restrictions on products originating from here. The commerce ministry is believed to be keen on studying jointly with the chamber, the impact of integration of the east and central European countries with the European Union (EU) on trade with India. Ficci expects the study to be commissioned soon, though the ministry is yet to work out the modalities and funding for the project. The chamber believes the two regions offer a big market for Indian consumer- goods manufacturers, particularly for the white-goods companies. The ministry, alongwith the chamber, also plans to organise seminars on exploiting opportunities in these countries. In addition, it plansto organise exhibitions there to enable domestic companies display their products. Last month, at a meeting with the commerce, industry and external affairs ministries, the chmaber had proposed various measures to expand bilateral trade with these countries. Ficci secretary-general Amit Mitra felt the regions presented a large market for middle-level goods. ``Our policies should target their consumer-goods market, which are consistent with our white goods and textiles industries," Mitra said. "The economies in these areas are turning around and for the next three-five years, Indian products will be competitive there," he added. With American companies poised to take positions there, India will have to move fast if it wants to build on the existing linkages it has with the east and central European countries, Mitra said. Bilateral trade between India and this block declined again during 1996-97 after staging a brief recovery from 1994-95. Ficci, in its presentation, has said the government should
encourage domestic banks to open branches in those countries and permit their banks to open branches here to facilitate smooth opening of letters of credit, availability of export trade and bank guarantees, and to correct a number of marketing-related distortions. It has also called for developing necessary institutions for the insurance of foreign investments and to create more secure conditions for international investors. The chamber has also stated that establishment of joint ventures or collaborative projects in these countries should be facilitated to take advantage of the concessional duty/free duty and export from these countries to west European nations.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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