16th April, 2002
Ministry of Commerce  


INDIA SEEKS COOPERATION WITH LOMBARDY TO UPGRADE INDUSTRIAL CLUSTERS


India has sought cooperation with Lombardy in upgrading competitiveness of industrial clusters in the country. During a meeting with Mr. Roberto Formigoni, President of the Lombardy Region, Italy, here today, Shri Murasoli Maran, Union Minister of Commerce and Industry, suggested facilitating linkages, to begin with, between five sectors in the Lombardy industrial region and industrial clusters in India with a view to enhancing the competitiveness of identified industrial sectors. He further suggested that some of these linkages could include: setting up and operating modern tool rooms to serve the units in the clusters (on contract basis); training of shop floor and supervisory personnel in latest technology and modern manufacturing practices; to identify technology gaps in existing units as also to identify machinery, equipment and processes required to bridge these gaps and finally, to help set up performance benchmarks in terms of quality and productivity. "The cluster model of industrial growth of Lombardy, with its dynamism, flexibility and global competitiveness is a model for industries for India", Shri Maran said and expressed the hope that Mr. Formigoni’s visit to India, which is being undertaken close on the heels of the meeting of the India-Italy Joint Commission and the Destination India events in Rome and Milan last February, would lead to substantial enhancement of interaction between India and Lombardy in areas of mutual interest.

The President of Lombardy said that his visit was aimed at strengthening bilateral trade and economic relations between India and Italy in general and with Lombardy in particular. Referring to Lombardy’s experience in small and medium enterprises and industrial clusters, Mr. Formigoni mentioned that Lombardy with a population of 9 million has 800,000 small companies, which meant one company for every seven Lombard. Agreeing with Mr. Formigoni about the potential for greater trade, Shri Maran said that bilateral trade between India and Italy had crossed the US $ 2 billion mark during 2000-2001. Italy is India’s 4th largest trade partner in the EU and one of its leading investors. More than 800 foreign collaboration cases have been approved with Italy and the top sector attracted the Italian investment included transportation, food processing, metallurgy, electrical equipment, computer software and textiles. Shri Dipak Chatterjee, Commerce Secretary and Shri V. Govindarajan, Secretary (IPP), participated in the discussions.

During the discussions, the Lombardy delegation raised the issue of tariff and non-tariff barriers being faced by Italian entrepreneurs. The Indian side explained that the barriers had been dismantled to a great extent with the phase out of QRs on imports last year. Shri Maran assured that specific cases brought to his notice could be looked into and resolved. It was also mentioned that India’s FDI policy had been greatly liberalised and a mechanism for speedily resolving operational problems of foreign investors was also in place in the form of the Foreign Investment Implementation Authority (FIIA).

Lombardy is economically the most advanced of Italy’s 20 regions with a per capita income of US $ 24,000. It accounts for about 35% of Italy’s global trade with a trade turnover of nearly $ 160 billion. The high-level Lombardy delegation, which is also scheduled to visit Mumbai, Kolkata and Bangalore, included Mr. Benedetto Amari, Ambassador, Mr. Massimo Zanello, Regional Minister for SMIs, Mr. Alessandro Moneta, Regional Minister for Territory and Urban Development, Mr. Maurizio Bernardo, Regional Minister for Water Resources and Public Development Services, Mr. Rafaele Cattaneo, Vice Secretary General of Lombardy Region, Mrs. Antonella Prete, International Relations, Mr. Roberto Ronza, Adviser to President Formigoni and Mr. Marco Conticelli, Counsellor, Economic, besides a large number of representatives of the Lombardy trade and industry as well as the media.