Call To Increase Investment Flows From EU

Hyderabad: If the foreign direct investment (FDI) into the country was $15.72 billion during the financial year 2006-07, the contribution of the European Union (EU) countries was a minuscule 0.2 per cent. The reasons for low EU interest is due to quality inconsistency of Indian products, infringement fears on IPR (Intellectual Property Rights), procedural delays and lack of transparency. There is need and a big potential for an accelerated growth of FDI from EU countries in the near future, a meeting of the EU-India Trade and Investment here has felt.

To make this happen, a joint programme of the EU and India called the IFD (EU-Investment Facilitation Desk) has created a two-year initiative with about €13.35-million fund. The IFD was in the process of setting up a few quality-testing labs that meet the EU and global standards. The equipment would arrive shortly and would become functional and help Indian exporters. India has to look for more FDI. The exports, which were $120 billion, need to go up substantially and the EU countries definitely offer good scope, once their worries are addressed. Several industry representatives from the State participated in the meeting.