EU Gravitates Towards India For Better Trade Investments
India is on the horizon and the epicenter of business growth in the world too. As Russian war continues to trouble Ukraine, European countries are gradually being seen moving closer to India.
It might not be something being done out of choice; it’s a push coming to a shove!
China is another reason why the EU is so clear that they need to do trade with someone more stable right now. India has come up as the true winner.
For starters, EU is now looking into the long pending Free Trade Agreements with India in order to harness their business possibilities. There are rumours about European countries at looking at shifting shop to India as well.
Speaking to the media over an unrelated event, French ambassador Emmanuel Lenain said, “We don’t want to solely depend on China for manufacturing products. So, there is strong support from the government to bring some production back to the EU, and there are plans (that are being designed). But we know that there will be costs. We cannot bring everything into Europe and that’s where India comes into the picture. We know that in the next two decades at least, we won’t experience that kind of uncertainty and discomfort that we have with China.”
In her April 2020, two-day power pact visit to India, EU Commissioner, Von Der Leyen indicated that there was huge untapped potential to do business with EU. It is worth noting that trade in goods and services between the two sides as of 2020 stood at €96 billion and the EU is India’s third largest trading partner and second largest export destination as well.
As of now, according to an EY Attractiveness Survey, France has emerged as the topmost destination for foreign investments surpassing Germany and the UK. The survey has commented that, “Businesses remain optimistic that Europe will retain its status as a highly attractive long-term destination for foreign investment. But policymakers cannot afford to sit back. Many factors could undermine the continent’s long-term attractiveness, not least the war in Ukraine.”
