'Spanish BPOs are untapped business'
The investment climate in Colombia is far better than what is popularly perceived.
By G Ganapathy Subramaniam, |
On recovery path after decades of turbulence, Colombia is keen to strengthen business ties with India and accelerate its economic growth. The investment climate in Colombia is far better than what is popularly perceived, South American country���s minister of commerce, industry and tourism Luis Guillermo Plata said. The young minister feels bilateral investment flows would benefit both economies and a bilateral investment promotion agreement should be signed soon. Excerpts:
What are the economic co-operation goals that you are focusing on?
Economic engagement between India and Colombia is very little now. We see potential for improving business ties and stimulate investment flows. Indian companies will find it attractive to do business in Colombia. Pharma companies, infotech players like TCS and Infosys, and petroleum major Reliance Industries are already there.
We want more Indian companies to invest in our country. We also want conducive climate for our companies to invest here. There are several areas where companies from the two countries can work together. For example, we produce emeralds which can be used by the Indian gems & jewellery sector.
Is there scope for engagement in the services sector?
Considering contracts like distance, how is business being facilitated at the government level?
We are discussing an investment promotion agreement and we are hopeful that it will be signed soon. Once this is done we would like to initiate talks on a double taxation avoidance agreement. During this visit, I am meeting a large number of business delegates from India. We are also planning a visit of the Colombian president to India, probably later this year. The idea is to improve the business climate.
What are you doing to boost the confidence of investors?
Therefore, we want people to come there and get a first-hand experience. Last year we had 1.2 million tourists visiting our country. There was a significant growth, but the number was the same as 1980. We have lost more than two decades due to unrest and we are making up for it.
What are the economic co-operation goals that you are focusing on?
Economic engagement between India and Colombia is very little now. We see potential for improving business ties and stimulate investment flows. Indian companies will find it attractive to do business in Colombia. Pharma companies, infotech players like TCS and Infosys, and petroleum major Reliance Industries are already there.
We want more Indian companies to invest in our country. We also want conducive climate for our companies to invest here. There are several areas where companies from the two countries can work together. For example, we produce emeralds which can be used by the Indian gems & jewellery sector.
Is there scope for engagement in the services sector?
ADVERTISEMENT
Definitely. We are very keen on BPOs. Indian companies have the expertise to run BPOs and we have people who are fluent in Spanish. Since there are 500 million people speaking Spanish all over the world, this could be a business opportunity. In the services sector, this could be a good beginning for bilateral cooperation. Engagement in the BPO sector could be far simpler than other segments like finance or biotechnology.Considering contracts like distance, how is business being facilitated at the government level?
We are discussing an investment promotion agreement and we are hopeful that it will be signed soon. Once this is done we would like to initiate talks on a double taxation avoidance agreement. During this visit, I am meeting a large number of business delegates from India. We are also planning a visit of the Colombian president to India, probably later this year. The idea is to improve the business climate.
What are you doing to boost the confidence of investors?
ADVERTISEMENT
The major challenge we face is in improving the perception about Colombia. We went through a tough period and we are in the process of reconstructing our economy. To some extent, we have succeeded too. For example, GDP growth in 2007 was 7.5% and we attracted investments to the tune of $9.28 billion. However, the perception of our country has not improved. Perception is lagging reality. We need to correct this perception. If people visit Colombia, they can see for themselves.Therefore, we want people to come there and get a first-hand experience. Last year we had 1.2 million tourists visiting our country. There was a significant growth, but the number was the same as 1980. We have lost more than two decades due to unrest and we are making up for it.
ADVERTISEMENT
What type of visa regime do you have?
We have an open and liberal regime for issue of visas. Most visas are issued within 24 hours and we issue more than 60 visas a week. There are no complaints from Indian business about getting visas to visit our country. We also keep in touch with our Indian counterparts to keep the visa system hassle-free. However, caution is necessary in some cases to check illegal immigration.
Are you also seeking a free trade agreement (FTA) with India?
Not at this juncture. The complimentary between the two economies is limited when it comes to trade in goods. That is the reason why we are focusing on investment flows.
What level of interaction does Colombia have with India?
ADVERTISEMENT
We support India���s efforts to speed up the Doha round agreement. We have been interacting closely with several countries on key issues like NAMA and farm subsidies. Unfortunately, progress has been slow and the Doha round is still hanging fire. Due to issues like food scarcity in many parts of the world, trade liberalisation is getting increasingly difficult. Once we get the investment protection and avoidance of double taxation agreements in place, we will seek an FTA.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
ADVERTISEMENT
