The Indian Ambassador in Denmark speaks on India’s Future Role in Europe

 

At the signing of the agreement between LADEGAARD A/S and Vinsys IT Services (I) Pvt. Ltd., His Excellency, The Ambassador to India, Shri Yogesh K. Gupta made this speech:

 

Mr. Jens Ladegaard, Mr. Vikrant Patil, Mr. Anders Knutsen,

 

I am happy to be present here today at the signing ceremony of the collaboration agreement between M/s. Ladegaard A/S and M/s. Vinsys IT Service Private Limited, an Indian Consultancy Company, on efficient selling of Indian products and services in Europe. Though M/s. Ladegaard A/S is a young company, in a short time, it has established partnership agreements with companies in the USA, Ireland, Norway and now with India, and is working with many important clients such as IBM, Carlsberg and ISS.

 

The development of Indian economy

The economic partnership agreement that you sign today symbolizes a major change in the relationship between India and the European countries from an erstwhile colony to one of partnership. This has become possible after the political, economic and social progress achieved by India in the last 60 years and initiation of bold economic reforms in 1991. After these reforms, the Indian economy was put on the high growth path and in the last 5 years, the best period for the growth of Indian economy, the GDP growth increased to about 9% or more. This has led to tripling of the per capita income since the 1980s, emergence of a strong middle class with much increased purchasing power, liberation of the Indian economy from the shackles of artificial controls, the era of licences, limits on industrial expansion, easier flow of foreign direct investments and new management practices.

 

India today is becoming more and more integrated and engaged with the global economy, which is reflected in the large mass of foreign investment (which last year reached a figure of $20 billion) it is attracting, its growing share of global trade, a large number of multinationals and foreign companies setting up production bases in India, organic and inorganic growth of the Indian industry abroad and movement of the highly skilled personnel in both directions. India is now home to a large number of global brands and the Indian market is becoming dominated by global talent and high income earners.

 

We realize that to increase our GDP growth to higher levels, eliminate poverty and regional disparities, we need to achieve a more inclusive growth through additional investments in agriculture, rural development, education, health, infrastructure, power generation, telecommunication, transport and foreign trade sectors. Our government and the private sector are making strenuous efforts to mobilize and use additional resources efficiently, improve human capital and adapt appropriate technologies to achieve higher growth in these sectors.

 

 

European investments in India

India and the European countries share many common ideals and values such as, democracy, urge for a social welfare State, secularism, establishment of liberal multi-ethnic pluralist societies, respect for human rights and a rule-based global order. Europe is a major investor in India but only a small part of its total foreign investment has so far entered India.

 

India’s democratic and open society, large market, availability of abundant skilled and trained manpower, strong legal regime and industriousness of its Indian people should attract you to invest more in India. India is setting up green airports and ports, modernize and expand the existing ones, set up new power plants, build new highways, bridges and roads, new Indian Institutes of Technologies, Management, Information Technologies, new hospitals, townships and Special Economic Zones. There are numerous possibilities for the Indian and European companies to collaborate in these areas contributing to expansion of the existing and setting up new green field units.

 

Sustainable economic growth

We are very much aware that the economic growth in India will need to be environmentally sustainable; we are enhancing our energy efficiency and adapting ourselves to climate change effects.

 

India’s per capita energy consumption is among the lowest in the world i.e. 12.6 million btus per year, as against 180 million btus for South Korea and 181 million btus for Taiwan. We have already registered a decoupling between our GDP growth and energy consumption; as against the economic growth of over 9% per annum since 2004, energy growth has only been 3.7%.

 

Our government has adopted policies to promote increased reliance on the renewable energy for electricity generation; total installed renewable electricity capacity increased to 11,000 MW (against a total power generation of about 135,000 MW). New power generation plants based on coal are being encouraged to adopt more efficient clean technologies and the government has launched a major programme to increase share of hydro power, which is now over 35,000 MW to 50,000 MW by 2012. The new public transport systems, being introduced, are based on the use of CNG. The government has encouraged the installation of wind turbines and photo-voltaic modules which could capture the solar energy.

 

There are many opportunities for Europe and India to collaborate in increasing power generation in India from the renewables and traditional sources.

 

Creating a knowledge based society

The Indian industry has made rapid strides in several sectors such as, information technology, bio-technology, pharmaceuticals, tele-communication, financial services and public entertainment. After the Indian scientists, engineers, doctors, our IT experts are playing a major role in spearheading the growth of hi-tech Industries and Services Sector in the USA and Europe.

 

The European companies have developed niche strength in areas like, power generation, shipping, food processing, transport, insurance and consultancy services. Europe can be a valuable partner in our efforts to usher in a knowledge based society.

 

New opportunities for Indian and European businesses

The increase in per capita incomes is encouraging the Indian middle class to spend a larger part of their earnings on tourism and travel, entertainment, shopping of consumer goods and invest more in the education of their children. While the number of inbound tourists has increased to 4 million per year, the number of outbound tourists has surpassed this figure.

Large numbers of Indians are now travelling to the European countries, USA, countries in South East Asia, Australia and others. There is need for the tourism and travel industry to focus on the requirements of these people and provide them adequate facilities in accordance with their requirements and tastes.

 

The entertainment industry in India is burgeoning with the Bollywood films. There are opportunities in this industry for the artists and technicians from India and the EU countries to work together, as we are doing with the Hollywood.

 

It is well-known that Europe is going to face a crunch of working age people, as its existing population ages and population growth declines. India, which is home to many world-class hospitals, will be able to provide medical tourism and other facilities to large numbers of people from the European countries, who have to wait for a long time to get attention of specialists in their own countries, and at much cheaper prices. Similarly, India will be able to meet the requirement of talented professionals including doctors, engineers and IT experts from the European countries for shorter periods.

 

Co-operation at the governmental level

I have dwelled so far on opportunities for the industries and businesses in India and Europe for mutually beneficial cooperation and tie ups. Let me now say a few words on the cooperation at the governmental level.

 

India and the European Union have established a strategic partnership since 2004 and every year, India and the EU Presidency meet at the Head of Government level in a Summit to discuss increasing the range of cooperation. The 8th India-EU Summit was held in Delhi on November 30, 2007, which was preceded by a Ministerial Troika Meeting on May 31, 2007 at Berlin.

 

India and EU are cooperating in a large number of areas such as, security, counter-terrorism, increasing Parliamentary exchanges, opportunities for higher education, cooperation in agriculture, food processing, elimination of barriers to trade, cooperation in science & technology, waste management, energy, information and tele-communication technologies.

 

The leaders of the two sides have decided to keep increasing people-to-people contacts for businessmen, professionals, members of the official delegations, scientists, researchers, academics and civil society representatives.

 

India and EU have agreed to conclude a broad-based trade and investment agreement and to work jointly to strengthen the role of the UN Human Rights Council and Peace Building Commission. Due to our common values and approaches, India and Europe will work together to promote global peace and stability, take joint initiatives for elimination of tensions and crises in regional trouble spots and work together to assist people afflicted by humanitarian emergencies and natural disasters. Our scientists and academics are working together on many research projects including the ITER Nuclear Fusion Energy Project sharing their mutual competences and knowledge.

 

Future opportunities for collaboration

The EU is India’s largest trade partner accounting for about 1/5th of India’s total external trade, a major investment partner and home to a large Indian Diaspora. The relations between India and the EU have diversified from what used to be a purely trade and economic driven relationship to one covering a wide cross-section of interaction.

 

As India grows further, there will be lot more opportunities for collaboration between India and Europe for maintenance of global peace and stability, security, fight against terrorism, disarmament, protection of environment, human rights, increase of investment, trade and technology exchanges, provide variety of services, people-to-people exchanges, interaction among the civil society and making joint efforts to resolve global problems such as, fight against the HIV/AIDS and other diseases.

 

It is important that our governments and the private sector display an open, non-protectionist and cooperative attitude and take timely initiatives to benefit from such opportunities which will help us grow together. The Indian market will become an active driver of the growth of your companies and take them to majestic heights of glory.

 

Thank you.