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Trade with EU to touch $572 bn under FTA by 2015, FICCI
04 Feb '08
2 min read
India's trade engagement with EU could touch $572 billion under the FTA which is likely to be fully implemented by 2015, according to latest FICCI study on “India-EU Trade & Investment: Current Status and Issues”.
This engagement includes both trade in goods and services, in which trade in services would be having a major share of around 57% of the total trade.
FICCI study stated that India's trade in goods could be around $251 billion and trade in services around $320 billion with EU under the FTA by 2015.
However, FICCI study expressed concern over the growing trade deficit in goods between India and EU. FICCI said that trade deficit which was $492 million only in 2001-02 has spiraled to $3 billion by 2006-07, i.e. over 6 times.
FICCI study also emphasized the need for resolution of number of issues under the FTA negotiations for increasing the share of India's exports in EU market, both for goods and services.
Currently, India's share is only 1.8% in EU's world imports of goods, and only 1.3% in EU's world import of services, FICCI pointed out.
Some of the important barriers to trade and investment faced by Indian business in EU market are lack of harmonization of micro-biological standards in EU countries; costly certificates required for exporting fruits to EU; costly conformity procedures for CE mark; aflatoxin limits in groundnuts; delay in approvals by EC for Indian milk product units; Visa issues; lack of recognition of qualifications and work experience; VAT etc, according to FICCI study.
This engagement includes both trade in goods and services, in which trade in services would be having a major share of around 57% of the total trade.
FICCI study stated that India's trade in goods could be around $251 billion and trade in services around $320 billion with EU under the FTA by 2015.
However, FICCI study expressed concern over the growing trade deficit in goods between India and EU. FICCI said that trade deficit which was $492 million only in 2001-02 has spiraled to $3 billion by 2006-07, i.e. over 6 times.
FICCI study also emphasized the need for resolution of number of issues under the FTA negotiations for increasing the share of India's exports in EU market, both for goods and services.
Currently, India's share is only 1.8% in EU's world imports of goods, and only 1.3% in EU's world import of services, FICCI pointed out.
Some of the important barriers to trade and investment faced by Indian business in EU market are lack of harmonization of micro-biological standards in EU countries; costly certificates required for exporting fruits to EU; costly conformity procedures for CE mark; aflatoxin limits in groundnuts; delay in approvals by EC for Indian milk product units; Visa issues; lack of recognition of qualifications and work experience; VAT etc, according to FICCI study.
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