India is actively engaging with key European partners to expand its economic footprint, and recent high-level discussions with Belgium underscore this effort. The two nations have explored concrete ways to enhance bilateral trade, foster industrial collaboration, and attract greater investments, particularly in strategically important sectors.
High-Level Meetings in Brussels
These significant deliberations took place during the recent visit of India’s Commerce and Industry Minister to Brussels on May 2nd. The Minister held productive meetings with senior Belgian officials, including the Belgian Minister of Defence and Foreign Trade and the Minister-President of the Flanders region. These interactions provided a platform to discuss the current state of economic ties and chart a course for future growth.
Focusing on Strategic Sectors
A key focus of the discussions was on scaling up bilateral trade and fostering deeper industrial collaboration. Both sides identified several strategic sectors with high potential for mutual benefit. These include:
- Semiconductors: Given the global push for semiconductor manufacturing and supply chain resilience, collaboration in this area is crucial for both India’s ambitions in electronics manufacturing and Belgium’s technological expertise.
- Clean Energy: As the world transitions towards sustainable energy sources, opportunities in areas like renewable energy technologies, green hydrogen, and energy efficiency offer significant potential for joint projects and investments.
- Defence Production: Enhancing cooperation in defence manufacturing aligns with India’s ‘Make in India’ initiative in the defence sector and Belgium’s capabilities in specialized defence technologies.
- Pharmaceuticals: India is a global leader in pharmaceutical production, and deepening ties with Belgium, a hub for healthcare and life sciences, can lead to increased trade, research collaboration, and investment in the pharma sector.
The focus on these sectors highlights a shared vision to move beyond traditional trade and build partnerships in areas critical for future economic growth and technological advancement.
Reviewing EU-India FTA Progress
Beyond the direct bilateral relationship, the discussions in Belgium also provided an opportunity to review the progress of the ongoing negotiations for the India-European Union Free Trade Agreement (FTA). Belgium, as a founding member of the EU and home to the EU’s headquarters, plays a crucial role in these broader trade discussions.
Both India and Belgium acknowledged the importance of the EU-India FTA and recognized the need to effectively address both tariff and non-tariff barriers. Removing these obstacles is seen as essential for facilitating smoother market access for businesses from both India and Belgium, ultimately boosting trade and investment flows between India and the entire EU bloc. The review signals a shared commitment to advancing these comprehensive trade talks.
A Growing Economic Partnership
The economic relationship between India and Belgium is already substantial and shows promising growth. Belgium is currently India’s fifth-largest trading partner within the European Union. Bilateral trade between the two countries reached $15.07 billion in the fiscal year 2023-24, reflecting a healthy volume of goods and services exchanged.
Furthermore, Belgian foreign direct investment (FDI) into India has shown a positive trend. From April 2000 to September 2024, total Belgian FDI in India amounted to $3.94 billion. Notably, there has been significant recent growth, with Belgian FDI increasing by 39% (equivalent to $1.1 billion) in the past year alone. This indicates growing confidence among Belgian businesses in the Indian market and its economic prospects.
The discussions in Brussels reaffirm the mutual desire to deepen this economic partnership, leveraging the complementary strengths of the Indian and Belgian economies to unlock new opportunities for trade, investment, and industrial collaboration in key strategic areas.
Source – Fieo
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