Description
Presentation on the relationship between India and European Union (EU) in terms of trade between them.
Presentation on
India & Euro
Members of Euro Zones
Members of European Union :- 27 member States
Austria Belgium Bulgaria Cyprus Czech Republic Denmark Estonia Finland France Germany Greece Hungary Ireland Italy Latvia Lithuania Luxembourg Malta Netherlands Poland Portugal Romania Slovakia Slovenia Spain Sweden United Kingdom
Establishment of the EU
Objectives:
?Remove frontier controls ?“Mutual recognition” of product standards ?Open public procurement to non nationals ?Lift barriers to banking and insurance competition ?Remove restrictions on foreign exchange transactions
The Euro:?The EU (except for UK, Sweden & Denmark) has been a monetary union since 1 Jan. 1999 ?The EU-12 have replaced their national currencies with a common currency the € ?Each has sacrificed policy independence to a unified central bank – the ECB ?Each country in the € must accept ECB decisions on interest rates and the external value of the currency against the $
The “one-size-fits-all” moneTary policy
The Euro: Advantages
•Savings from using only one currency •Easy to compare prices, resulting in lower prices •Reduce FX Risk, Shop Around •Forces efficiency and slashing costs. •Creates liquid pan-Europe capital market.
•Increases range of investments for individuals and institutions
•As of 2004 Euro is strong against the dollar and is expected to rise
Disadvantages :?Countries lose monetary policy control.
?European Central Bank controls policy for the “Euro zone”
?Country economies are different
?Strong Euro makes it harder for Euro zone exporters to sell their goods
Why to trade with European Union:•There is an increase in number of EU member country. •EU’s member country jointly accept single currency EURO. •EU’s give importance to India because fast growing country & good market for business. • Now a day’s, India – EU (talk) is going on for Free Trade Agreement and EU will give permission to India. •Cheap Land and Labour
India’s Relations with EU
•India was among the first countries to establish diplomatic relations with the EEC (European Economic Community) in 1960. •The 1994 cooperation agreement signed between EU and India took bilateral relations beyond merely trade and economic cooperation. Together with the Joint Political Statement signed in 1993 it opened the way for annual ministerial meetings and a broad political dialogue. Since then, dialogues have been held at different levels and at regular intervals. •In 2004, EU and India entered into a strategic relationship. The EU has strategic partnerships with only five other countries: USA, Canada, Russia, Japan and China. Since then, Joint Action Plans are being made and updated regularly. • India has signed Bilateral Investment Protection Agreements (BIPA) with 16 of the 25 EU Member States. •Double Taxation Avoidance: India has Double Taxation Avoidance Agreements (DTAA) with 18 out of 25 EU Member States. Negotiations for signing DTAAs with Lithuania, Estonia, Latvia, Slovakia and Slovenia are in advanced stages.
TRADE RELATIONS
•Between 2000 and 2007, EU27 trade in goods with India more than doubled in value: exports rose from 13.7 billion euro to 29.5 bn, while imports increased from 12.8 bn to 26.3 bn. As a result, the EU27 surplus in trade with India increased from 0.8 bn in 2000 to 3.2 bn in 2007. This increased surplus was mainly due to a surplus in manufactured goods, which rose from 0.9 bn in 2000 to 4.7 bn in 2007. India accounted in 2007 for 2.4% of EU27 exports and 1.8% of EU27 imports, and was the EU27's 9th most important trading partner. •For India, EU is the largest exporting destination (over 22% of our exports) and the largest importing source (19% of our imports).
•Among the EU27 Member States, Germany (7.3 bn euro, 25% of EU exports) was by far the largest exporter to India in 2007, followed by Belgium (5.4 bn or 18%) and the United Kingdom (4.3 bn or 15%). The United Kingdom (5.3 bn or 20%) was the largest importer, followed by Germany (4.3 bn or 17%) and Italy (3.4 bn or 13%).
India-EU Trade (1991-2001)(In € Million )
YEAR 1991 1992 1993 1994 EXPORTS 4756 4878 5880 6912 IMPORTS 5219 5246 6294 7053 TOTAL TRADE 9975 10124 12174 13965
1995 1996
1997 1998 1999 2000 2001
7794 8588
9465 9790 10020 12341 12941
9442 9895
10208 9539 10344 13303 12610
17236 18483
19673 19329 20364 25644 25524
EU's Major EX-IM Products (2001) (In € Mio)
IMPORTS Products Value India's share of EU total % 1.7 0.1 0.3 0.4 Products Agricultural Products Energy Machinery Transport Material Chemical Products Value EXPORTS India's share of EU total % 0.3 0.3 1.1 0.3 Balance
Agricultural 1435 Products Energy Machinery Transport Material Chemical Products 147 829 448
170 62 3333 551
-1265 -85 2504 103
1079
1.4
1266
0.9
187
Textiles and 4636 clothing
6.3
Textiles and clothing's
150
0.4
-4486
EU 27 Merchandise Trade with India by Product (2007)
10000
8000
Imports
Exports
6000
In Millions Euros
4000
Trade Balance
2000
0
-2000
Agricultural products
Energy
machinery
Transport Chemicals equipments
Textile & clothing
-4000
-6000
-8000
EU 27 Trade in services with India
Particulars
2005 Import 2006 2007* 2005 Export 2006 2007*
( in million Euros)
Net 2005 2006 2007*
Total of which:
Transportation Travel Other services of which:
5438
6978
8992
4801
5548
6616
638
1430
2376
2219 728 2438
2176 879 3920
2540 905 5536
1286 1636 1872
1365 1651 2529
1463 1852 3280
933 -907 566
811 -773 1391
1077 -947 2257
Communications services Construction services Insurance services Financial services Computer and information services Royalties and license fees Other business services Personal cultural and recreational services Government services other
87 221 28 190 186 94 1425 11 197
134 162 97 275 281 184 2492 19 277
158 339 91 297 393 305 3613 42 299
162 100 48 57 530 23 898 7 47
181 89 38 96 714 21 1334 11 46
210 130 33 85 894 58 1792 21 58
-76 122 -20 133 -344 70 527 4 150
-47 73 59 179 -433 163 1158 9 232
-52 209 58 212 -500 248 1821 21 240
Total extra-EU27
India / total extra-EU27 * Provisional data
402856
1.3%
441556
1.6%
501427
1.8%
349989
1.4%
373059
1.5%
413036
1.6%
52867
68497
88391
EU-Investment in India
?The EU is India's largest source of foreign direct investment, with EUR 2.2 bn on average for 2004-2006, compared to the United States with EUR 1 bn. ?EU investment flows to India gained significant momentum in 2007, seeing a more than fourfold increase from EUR 2.5 bn in 2006 to EUR 10.9 bn in 2007; this represented 3 % of total EU outflows to extra-EU partners. ?When comparing 2007 levels with those of 2004, the increase is even more than sevenfold. In 2007, India attracted 25 % of total EU outward flows to the BRIC group.
FDI outflows to the BRIC countries by main EU investing country (in EUR million)
Brazil 2004-2007 average
2007
Russia
2004-2007 2004-2007
India average
China
2004-2007
Extra-EU
2004-2007
BRICs
2004-2007
average
2007
averag e
2007 2007
average
2007
average 2007
*EU-27 Belgium Germany
6 1
404 7143 10 844 17 106 336 -139 73 1147 2 403 958 189 6 698
4
376 33 864
10 1
947 10454 28 719 68 2712
7780 369 2246
267928 419 912 32 : 25606 9 856 6 2 51 708
77 840 838
42976 1216 11810
Spain
France Italy Luxembourg **Netherlands Finland Sweden United Kingdom ***Other Member States
2
13
160 223 56 42 529
2467
160 -6 2 123 377 956 3
127
569 33 320 781 173 454 :
81
603 19 417 488 69 407 : 2
:
255 39 9 258 63 44 572 240 7
90
316 35 5 465 103 96 567 523
:
1179 251 42 -116 125 78 4659 1455
783
1751 394 31 -1029 -74 95 3437 -223
:
27042 : 38714 10380 -210 : :
25 188
34 730 210 78 287 -6 350 664 32 4 3
:
913 483 594 83 417 618 :
3421
3755 608 447 -493 221 975 : 16
910 1085
160 -417
121 225
902 1390
796 7 366
166396 72 390 16 29321
Minus sign stands for disinvestment. : indicates missing or confidential data. * Data for EU aggregates take into account confidential data, estimates for Member States missing data and data for Special Purpose Entities (SPEs) that in some cases are additionally collected by Eurostat and the ECB from Member States not including SPEs FDI in national data. ** Netherlands: excluding SPEs. *** Other Member States is the difference between the EU-27 and the Member States presented in Table 2. In many instances, this value is very high as the national data do not include data on SPEs, which are taken into account in the EU aggregates .
EU-27 FDI outflows to the BRIC countries 2004-2007 (in billion EUR) 2004 Extra-EU BRIC
Brazil Russia India China
2005 234.5 29.6
7.4 9.6 2.5 10.1
2006 275.0 27.3
5.4 10.7 2.5 8.7
2007 419.9 43.0
7.1 17.1 10.9 7.8
142.3 28.5
5.7 6.0 1.6 15.2
EU FDI outward flows to India by main EU investor in 2007
Germany United Kingdom Netherlands France
500
1000 Euro millions
1500
2000
EU-27 FDI inflows from the BRIC countries 2004-2007 (in billion EUR)
2004 Extra-EU BRIC Brazil Russia India China 58.3 9.6 4.0 0.3 0.0 5.3 2005 127.0 7.2 2.9 2.8 0.5 1.0 2006 168.9 5.2 1.2 1.5 0.5 2.0 2007 319.2 10.4 1.9 1.0 9.5 -1.9
Bibliography
•www.eurostat.com
•www.ec.europq.eu
•Euro stat Press release on 26-09-2008
•Euro Stat Press Office
doc_927660677.pptx
Presentation on the relationship between India and European Union (EU) in terms of trade between them.
Presentation on
India & Euro
Members of Euro Zones
Members of European Union :- 27 member States
Austria Belgium Bulgaria Cyprus Czech Republic Denmark Estonia Finland France Germany Greece Hungary Ireland Italy Latvia Lithuania Luxembourg Malta Netherlands Poland Portugal Romania Slovakia Slovenia Spain Sweden United Kingdom
Establishment of the EU
Objectives:
?Remove frontier controls ?“Mutual recognition” of product standards ?Open public procurement to non nationals ?Lift barriers to banking and insurance competition ?Remove restrictions on foreign exchange transactions
The Euro:?The EU (except for UK, Sweden & Denmark) has been a monetary union since 1 Jan. 1999 ?The EU-12 have replaced their national currencies with a common currency the € ?Each has sacrificed policy independence to a unified central bank – the ECB ?Each country in the € must accept ECB decisions on interest rates and the external value of the currency against the $
The “one-size-fits-all” moneTary policy
The Euro: Advantages
•Savings from using only one currency •Easy to compare prices, resulting in lower prices •Reduce FX Risk, Shop Around •Forces efficiency and slashing costs. •Creates liquid pan-Europe capital market.
•Increases range of investments for individuals and institutions
•As of 2004 Euro is strong against the dollar and is expected to rise
Disadvantages :?Countries lose monetary policy control.
?European Central Bank controls policy for the “Euro zone”
?Country economies are different
?Strong Euro makes it harder for Euro zone exporters to sell their goods
Why to trade with European Union:•There is an increase in number of EU member country. •EU’s member country jointly accept single currency EURO. •EU’s give importance to India because fast growing country & good market for business. • Now a day’s, India – EU (talk) is going on for Free Trade Agreement and EU will give permission to India. •Cheap Land and Labour
India’s Relations with EU
•India was among the first countries to establish diplomatic relations with the EEC (European Economic Community) in 1960. •The 1994 cooperation agreement signed between EU and India took bilateral relations beyond merely trade and economic cooperation. Together with the Joint Political Statement signed in 1993 it opened the way for annual ministerial meetings and a broad political dialogue. Since then, dialogues have been held at different levels and at regular intervals. •In 2004, EU and India entered into a strategic relationship. The EU has strategic partnerships with only five other countries: USA, Canada, Russia, Japan and China. Since then, Joint Action Plans are being made and updated regularly. • India has signed Bilateral Investment Protection Agreements (BIPA) with 16 of the 25 EU Member States. •Double Taxation Avoidance: India has Double Taxation Avoidance Agreements (DTAA) with 18 out of 25 EU Member States. Negotiations for signing DTAAs with Lithuania, Estonia, Latvia, Slovakia and Slovenia are in advanced stages.
TRADE RELATIONS
•Between 2000 and 2007, EU27 trade in goods with India more than doubled in value: exports rose from 13.7 billion euro to 29.5 bn, while imports increased from 12.8 bn to 26.3 bn. As a result, the EU27 surplus in trade with India increased from 0.8 bn in 2000 to 3.2 bn in 2007. This increased surplus was mainly due to a surplus in manufactured goods, which rose from 0.9 bn in 2000 to 4.7 bn in 2007. India accounted in 2007 for 2.4% of EU27 exports and 1.8% of EU27 imports, and was the EU27's 9th most important trading partner. •For India, EU is the largest exporting destination (over 22% of our exports) and the largest importing source (19% of our imports).
•Among the EU27 Member States, Germany (7.3 bn euro, 25% of EU exports) was by far the largest exporter to India in 2007, followed by Belgium (5.4 bn or 18%) and the United Kingdom (4.3 bn or 15%). The United Kingdom (5.3 bn or 20%) was the largest importer, followed by Germany (4.3 bn or 17%) and Italy (3.4 bn or 13%).
India-EU Trade (1991-2001)(In € Million )
YEAR 1991 1992 1993 1994 EXPORTS 4756 4878 5880 6912 IMPORTS 5219 5246 6294 7053 TOTAL TRADE 9975 10124 12174 13965
1995 1996
1997 1998 1999 2000 2001
7794 8588
9465 9790 10020 12341 12941
9442 9895
10208 9539 10344 13303 12610
17236 18483
19673 19329 20364 25644 25524
EU's Major EX-IM Products (2001) (In € Mio)
IMPORTS Products Value India's share of EU total % 1.7 0.1 0.3 0.4 Products Agricultural Products Energy Machinery Transport Material Chemical Products Value EXPORTS India's share of EU total % 0.3 0.3 1.1 0.3 Balance
Agricultural 1435 Products Energy Machinery Transport Material Chemical Products 147 829 448
170 62 3333 551
-1265 -85 2504 103
1079
1.4
1266
0.9
187
Textiles and 4636 clothing
6.3
Textiles and clothing's
150
0.4
-4486
EU 27 Merchandise Trade with India by Product (2007)
10000
8000
Imports
Exports
6000
In Millions Euros
4000
Trade Balance
2000
0
-2000
Agricultural products
Energy
machinery
Transport Chemicals equipments
Textile & clothing
-4000
-6000
-8000
EU 27 Trade in services with India
Particulars
2005 Import 2006 2007* 2005 Export 2006 2007*
( in million Euros)
Net 2005 2006 2007*
Total of which:
Transportation Travel Other services of which:
5438
6978
8992
4801
5548
6616
638
1430
2376
2219 728 2438
2176 879 3920
2540 905 5536
1286 1636 1872
1365 1651 2529
1463 1852 3280
933 -907 566
811 -773 1391
1077 -947 2257
Communications services Construction services Insurance services Financial services Computer and information services Royalties and license fees Other business services Personal cultural and recreational services Government services other
87 221 28 190 186 94 1425 11 197
134 162 97 275 281 184 2492 19 277
158 339 91 297 393 305 3613 42 299
162 100 48 57 530 23 898 7 47
181 89 38 96 714 21 1334 11 46
210 130 33 85 894 58 1792 21 58
-76 122 -20 133 -344 70 527 4 150
-47 73 59 179 -433 163 1158 9 232
-52 209 58 212 -500 248 1821 21 240
Total extra-EU27
India / total extra-EU27 * Provisional data
402856
1.3%
441556
1.6%
501427
1.8%
349989
1.4%
373059
1.5%
413036
1.6%
52867
68497
88391
EU-Investment in India
?The EU is India's largest source of foreign direct investment, with EUR 2.2 bn on average for 2004-2006, compared to the United States with EUR 1 bn. ?EU investment flows to India gained significant momentum in 2007, seeing a more than fourfold increase from EUR 2.5 bn in 2006 to EUR 10.9 bn in 2007; this represented 3 % of total EU outflows to extra-EU partners. ?When comparing 2007 levels with those of 2004, the increase is even more than sevenfold. In 2007, India attracted 25 % of total EU outward flows to the BRIC group.
FDI outflows to the BRIC countries by main EU investing country (in EUR million)
Brazil 2004-2007 average
2007
Russia
2004-2007 2004-2007
India average
China
2004-2007
Extra-EU
2004-2007
BRICs
2004-2007
average
2007
averag e
2007 2007
average
2007
average 2007
*EU-27 Belgium Germany
6 1
404 7143 10 844 17 106 336 -139 73 1147 2 403 958 189 6 698
4
376 33 864
10 1
947 10454 28 719 68 2712
7780 369 2246
267928 419 912 32 : 25606 9 856 6 2 51 708
77 840 838
42976 1216 11810
Spain
France Italy Luxembourg **Netherlands Finland Sweden United Kingdom ***Other Member States
2
13
160 223 56 42 529
2467
160 -6 2 123 377 956 3
127
569 33 320 781 173 454 :
81
603 19 417 488 69 407 : 2
:
255 39 9 258 63 44 572 240 7
90
316 35 5 465 103 96 567 523
:
1179 251 42 -116 125 78 4659 1455
783
1751 394 31 -1029 -74 95 3437 -223
:
27042 : 38714 10380 -210 : :
25 188
34 730 210 78 287 -6 350 664 32 4 3
:
913 483 594 83 417 618 :
3421
3755 608 447 -493 221 975 : 16
910 1085
160 -417
121 225
902 1390
796 7 366
166396 72 390 16 29321
Minus sign stands for disinvestment. : indicates missing or confidential data. * Data for EU aggregates take into account confidential data, estimates for Member States missing data and data for Special Purpose Entities (SPEs) that in some cases are additionally collected by Eurostat and the ECB from Member States not including SPEs FDI in national data. ** Netherlands: excluding SPEs. *** Other Member States is the difference between the EU-27 and the Member States presented in Table 2. In many instances, this value is very high as the national data do not include data on SPEs, which are taken into account in the EU aggregates .
EU-27 FDI outflows to the BRIC countries 2004-2007 (in billion EUR) 2004 Extra-EU BRIC
Brazil Russia India China
2005 234.5 29.6
7.4 9.6 2.5 10.1
2006 275.0 27.3
5.4 10.7 2.5 8.7
2007 419.9 43.0
7.1 17.1 10.9 7.8
142.3 28.5
5.7 6.0 1.6 15.2
EU FDI outward flows to India by main EU investor in 2007
Germany United Kingdom Netherlands France
500
1000 Euro millions
1500
2000
EU-27 FDI inflows from the BRIC countries 2004-2007 (in billion EUR)
2004 Extra-EU BRIC Brazil Russia India China 58.3 9.6 4.0 0.3 0.0 5.3 2005 127.0 7.2 2.9 2.8 0.5 1.0 2006 168.9 5.2 1.2 1.5 0.5 2.0 2007 319.2 10.4 1.9 1.0 9.5 -1.9
Bibliography
•www.eurostat.com
•www.ec.europq.eu
•Euro stat Press release on 26-09-2008
•Euro Stat Press Office
doc_927660677.pptx