INT. J. NEW. INN.

, 2012, 1(1), 207-209

ISSN:2277-4459

INDIAS OPPORTUNITIES & CHALLENGES WITH EU

Sudesh1
1

Economics Depts in CDLU Sirsa

1. INTRODUCTION
In addition to the historical and cultural links between the sub continent and European, India was in 1962, one of the first countries, to establish relations with the European institutions. A series of agreements have been made since then, which has helped and strengthened the economic ties between European Union and India. Joint deceleration of intent was made as a part of the EU strategy on development and cooperation with India. The Joint declaration, constituted the EU new trade and development policy towards South & East Asian countries. The Joint declaration was followed by the Indo-EU Commercial Co-operation Agreement (CCA) of 1974, which was renewed in 1981, as Commercial and Economic Cooperation Agreement (CECA) which emphasized the need for strengthening and diversifying the commercial exchanges between the two parties. The provision on industrial cooperation emphasized on important matters such as the need for permitting industrial development through transfer of technology from the developed industrial nations to India. These treaties served well Indo-EU bilateral economic relation until 1994. Meanwhile, new economic changes have taken place in the international trading scence since the early nineties. Many countries have started liberalizing their economies in order to integrate themselves with global mainstream. A new Cooperation Agreement on Partnership and Development (CAPD) came in to being in 1994. The bilateral negotiation between the two parties agreed to remove tariff and non-tariff barriers as far as possible, so as to facilitate movement of groups and services and development and diversification of trade and investment in mutual interest. The Commission Communication on as EU-India Enhanced Partnership of June 1996 sets the stages for a comprehensive relationship between equal partners and emphasizes the need for greater mutual understanding. It advocates for pursuit of equilibrium between economic growth social progress and environmental conservation. The EU-India Strategic Partnership was set up in 2004 and was followed by the EU-India Joint Action Plan in 2005which set out a road map for the Strategic Partnership. Both sides have recognized that the 207

Partnership is based on the shared values of democracy, pluralism, rule of law, respect for human rights and independence of the judiciary and media. Apart from shared values, the Strategic Partnership is also based on shared interests. Mrs. Benita Ferrero-Waldner says that, The EU is keen to work with India on the crucial issues of our day, from energy security and climate change to multilateral trade liberalization, non-proliferation, UN reform, the promotion of human rights and democracy, the fight against terrorism, peace and regional integration in South Asia. The EU-India Security Dialogue, held for the first time in May 2006, is the forum for exchanging views on global, regional and bilateral security issues of common concern. Indo-EU relations grew stronger due to summits organize at regular intervals. Till now, tenth summits have been organized, the first most important being the one held in Lisbon in 2000 and the last being the one held in Delhi in 2009. India- EU relations, regional issues both around European Union and India & global issues including climate changes, terrorism, global financial crisis, and energy security and enhancing economic policy dialogue & cooperation and developing trade & investment were discussed at the ministerial meeting.

2. OBJECTIVES & METHOLODOGY

The attempt has been made in this paper to describe Indian export to EU and Indias opportunities & challenges to EU. The study pertains to Indian exports to EU and covers the period ranging from 1997 to 2011. The study is based on secondary data. The data have been collected from Department of Commerce Govt. of India (Export-Import data Bank). Study is based on quantitative and descriptive research analysis. Percentage and growth rate method have been used for analyzing the data.

2.1. Indias Exports to EU

After reducing trading restrictions Indias exports has grown significantly to European Union. In 1997-98 growth rate of exports to European Union is 11.61 per cent and reached at its peak in 2008-09 (29.06 per cent). International Journal of New Innovations