The Hindu : Industry begins dialogue with EU

Online edition of India's National Newspaper
Sunday, Jun 15, 2003

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Industry begins dialogue with EU

By Our Special Correspondent

NEW DELHI JUNE 14. In a bid to bring about closer ties with an expanded European Union (EU), the Confederation of Indian Industry (CII) will now hold a regular dialogue with it. The first round of such talks was held with the European Commission last week while a video-conference was held on June 11 with key interlocutors.

CII officials feel this kind of dialogue, being held in consultation with the Government, can help negotiations on both bilateral and multilateral issues. Industry's views on market access can be conveyed to the EU, which is showing greater interest in closer economic ties with India than ever before.

According to the CII's policy adviser, T.K. Bhaumik, there is little awareness that the E.U. is now looking closely at two large markets, seeking engagement in a broader perspective than before. While the interest in China has been evident for quite some time, he felt that it is not well known that the EU has now begun to focus equally on India and is putting considerable faith in its potential for growth.

Referring to the industry initiative with the EU, he said the CII feels this is the right time to start a dialogue since the bloc is on the verge of becoming a giant grouping. The induction of 10 more states have already brought about a huge expansion, but this is just the beginning. By 2007, it will be an even larger entity. If the vision is extended, he suggested that over the next 15 to 20 years this regional grouping could include Russia and the CIS states, making it an economic and political powerhouse.

Underlining the need for India to evolve a EU strategy, he said this should be undertaken well before this economic bloc becomes a much bigger entity. Already the Commission had shown its willingness to accommodate India's point of view as far as possible, he pointed out.

Giving his impressions of the EU's attitude to India, he said there was considerable confidence that this already huge economy will grow at the rate of 7 to 8 per cent. The talks with Indian industry revealed its confdence in this country's potential to sustain a high growth rate despite some temporary setbacks.

Highlighting the growing political clout of this economic bloc, he said it would be wrong to look at it only as a trading arrangement. Indications were clearly there that it would gradually transform itself into a more cohesive political entity in the long run for which both Indian industry and Government need to be fully prepared, he maintained.

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