Some estimates indicate that the level of bilateral India-EU trade may go up to Euro 100 billion after signing and subsequent operationalisation of the FTA. In 2009 India-EU bilateral trade in goods was Euro 53 billion while that in services was Euro 16.3 billion.

The Prime Minister left for Brussels to attend the 11th India-EU Annual Summit on December 10 jointly hosted by the President of the European Council, Mr. Herman Van Rompuy, and the President of the European Commission, Mr. Jose Manuel Barroso.

This would be the first such summit after the Lisbon Treaty came into force from December 1, 2009. First India-EU Summit was held in Lisbon in 2000 and at this summit, a decision was taken to hold annual summits. India and EU decided to elevate their relationship to the level of strategic partnership at the Fifth Summit in 2004. A Joint Action Plan, setting out a road map for India-EU interaction and diverse sectors, was adopted at the Sixth Summit in 2005.

Negotiations for India-EU FTA have reached an advanced stage. Severely hit by the recent global financial crisis, the EU is eager to conclude a trade deal with India which would boost the prospects of revival of the European economy. President Obama in his recent visit to India has struck deals which would create 50,000 additional jobs in the US. The EU, too, wants to take such an advantage and is eager to barter with India for technology transfers, cooperation in nuclear and renewable sources of energy, transfer of green technology, cooperation in education and space technology and support for reforms in the UN Security Council which would ultimately pave the way for India’s permanent membership of this body.

EU is an important trading partner of India and also a significant source of investment. The bilateral trade in goods in 2009 was €53 billion in value while services traded in the same year at €16.3 billion. The two sides have been in discussion to conclude a Broad-Based Trade and Investment agreement. Negotiations are progressing well and we are hopeful of concluding the agreement in early 2011.

An India-EU Business Summit will be held on the margins of the Summit on the theme “EU-India Partnership Opportunities for Sustainable Development”. It would have 2 sessions on “Clean Technologies in Energy” and “Transport and Infrastructure” and a CEO Round Table on “Growth and Partnership Opportunities”.

A Joint Declaration on culture is expected to be signed between the Department of Culture and the EU Commission.

Dr Singh will also attend the India-Belgium Summit in Brussels at the invitation of Prime Minister of Belgium, Mr. Yves Leterme. Belgium is a key partner in Europe, and has been supportive of India on many important issues. India-Belgium discussions will explore ways of diversifying our trade basket and promoting cooperation in high-technology sectors.

India-Belgium bilateral trade turnover is about $ 7 billion, of which 75% is in diamonds. Several Indian companies, particularly in IT and software sectors, such as Aricent, HCL, TCS and Infosys have established a base in Belgium.

There is potential for diversification of trade, cooperation in the field of transport, and in steel, bio-technology and pharmaceuticals, aeronautics, science and technology, automotive parts etc. There is potential to develop investment in areas such as energy, ports, construction, banking and finance, solar energy and bio-technology.

On December 11, 2010, Prime Minister will visit Germany where he will have meetings with the German President H.E. Christian Wulff and with Chancellor Angela Merkel.

“Our engagement with Germany is strong and multi-faceted. I look forward to reviewing with Chancellor Merkel the developments in our bilateral cooperation in the areas of high technology, trade, investment, energy, education, vocational training, skills development and culture,” said Dr Singh.

The India-Germany relations are also marked by rapidly growing economic and trade ties. Germany is India’s largest trading partner in the EU, one of the top investors and a source of technology.

Bilateral trade has been growing in the recent years to reach Euro 13.4 billion in 2008. In 2009, due to global economic crisis, it decreased marginally to Euro 13.09 billion. This year, bilateral trade has revived and is growing by over 15% and has reached Euro 9.80 billion during January-August, 2010. Germany was the eighth largest investor in India in 2009 with FDI inflows of $ 599.93 million. For the period April, 2000 - August 2010, Germany was the eighth largest investor cumulatively with FDI inflows of $ 2868 million.