European Union on Thursday said it wanted to help India in setting up an efficient services infrastructure, transform India?s agriculture into a commercial activity and provide access to technology and investment in manufacturing. Acknowledging that India has an advantage in trade in services, EU trade commissioner Peter Mandelson told reporters that the major hurdle facing the services sector in India was poor infrastructure.
?India has the skilled professionals in the services sector. But good infrastructure is the nervous system of the 21st Century services economy. If you don?t have that, you are denying opportunities for your people that they have a right to. We can partner India in delivering to its people efficient services infrastructure,? he said.
Mandelson said the proposed India-EU FTA would attract more investment from European firms, especially in infrastructure. India has estimated that it needs $475 billion to improve its poor infrastructure and to sustain 9% growth.
Regarding the agriculture sector, he said EU was willing to invest in agro-processing. ?We will create more opportunities in agro-processing and transform Indian agriculture into a more commercial activity.? When asked on the high tariffs in Europe on farm products that is hurting Indian farm exports, he refused to comment.
Mandelson said in the comprehensive economic agreement, the EU would want to include all the rules-based aspects. ?This is vital for creating investor confidence for foreign investment in india. Competition policy and clauses on protection of intellectual property rights in the FTA enables people to know that there is a level playing field, which in turn leads to investor confidence,? he said.
He said the proposed free trade agreement could provide a boost to India?s manufacturing sector as it would result in Indian exports greater access to European markets.