EU asks India to provide stable investment climate

NEW DELHI: The EU today asked India to provide stable business climate in order to attract more investments from Europe.

Speaking at a function of PHDCCI , João Cravinho, Ambassador, Head of Delegation of the European Union to India, said "If India can provide stability and predictability, it will attract more investments".

He said that the European Union's investments in countries like the US, China, Russia and Brazil are huge as compared to India.

"Thus the scope of FDI from EU in India is very large," he added.

The 27-nation bloc is India's largest trading partner and is one of the largest sources of foreign direct investment (FDI), he said.

"Though economic relations between India and EU have been multi-dimensional and have expanded over time, they are far below the potential," he said.

At present, India and EU are negotiating a comprehensive free trade agreement. The pact aimed at drastically reducing duties on goods and facilitating investments.

Speaking on the occasion, PHDCCI President Sandip Somany said that EU being the most competitive market in the world, it is necessary for Indian companies to enter the that market.

The two-way trade stood at USD 91.3 billion in 2010-11. A Ficci report said that trade between the two sides is likely to more than double to exceed $207 billion by 2015, if the trade pact is formalised.