India’s emergence as the hub of Information Technology
along with a huge domestic market offers her as one of the best
locations for the relocation of manufacturing base/sub-contracting
by engineering multinationals as also in the areas of Technical
Services to the European Industry. This was indicated by Shri
S.N. Menon, Additional Secretary, Ministry of Commerce & Industry,
here today while inaugurating Euro-India Conference on Sub-Contracting
Collaboration, which was organised by the Engineering Export Promotion
Council (EEPC). Shri Satish Dhanda, Chairman, EEPC was present
at the function along with several European and Indian delegates.
Shri Menon said that EU accounts for more than
21% of India’s total engineering products with UK, Germany and
Italy constituting more than 65% share of it. India’s bilateral
trade with Europe is around US$ 25 billion, which is more than
27% of India’s total foreign trade. He mentioned various outward
looking policy initiatives taken by the government viz. a liberal
import policy, low tariff regime on capital goods and raw materials,
an attractive foreign investment and technology regime and added
that it had a very positive effect in strengthening the Indian
manufacturing and subcontracting sectors.
The European market for sub-contracting is estimated
to be around Euro 400 billion per annum. Shri Menon asked Indian
sub-contractors to take advantage of this enormous market. To
realise this potential there is a need to adopt a Macro-Level
Promotional Strategy for creating a positive environment of trust
in the Indian engineering industry as a reliable partner for relocation
of manufacturing base, he added.
