ICT IN INCREDIBLE INDIA
Thursday, November 24th, 2011Been going non-stop since arrival in Dehli some 12 hours ago with only a few hours sleep. In my meetings with government tomorrow, I will suggest alternative path to growth and closer cooperation. Will send around links of media interviews also.
Today so far we had a stimulating meeting with EU ICT equipment industry – they employ more than 40,000 people in India. I’m very worried about draft bill here that would reserve 80% of ICT equipment market for Indian products which would shut European companies out from fast-growing market. Not the fair or level playing field I believe in, and a key reason for me being here. The local companies I met today argued strongly for protectionist approach to allow domestic industry to grow. I said best way to grow is to cooperate globally, not to close Indian market off.
I also made a presentation to Indian software association. Very dynamic, confident bunch. They are worried that draft local content legislation might derail EU-India FTA which they very much want. And of course I am a huge supporter of an ambitious agreement – it’s the best way forward for us all. Such an agreement would mean €9 billion in total benefits, virtually evenly split between EU and India. In fact, EU is India’s number one export destination and the EU is India’s number one foreign investor.
[FRIDAY UPDATE]
Dehli traffic quite hectic – not sure why I am surprised. But it was interesting to hear only 5000 European cars sold in India last year because of high customs tariffs. FTA should help.
There is a scam with spectrum allocation defrauding the taxpayer for some $ 40bn making headlines. Former telecoms Minister and several businessmen in jail. Happy we have clear rules in place in EU for spectrum auctions!
Am doing interviews with journalists, TV interview with CNBC. Major interest in euro crisis.
On my meetings, it is very encouraging with Telecoms Minister Sibal. He reassured me that telecoms legislation will not discriminate against non-Indian companies. We agreed that EU and India should cooperate more closely in R&D, internet security and regulation. High-level dialogue in February, with results expected in 6 months. The EU already finances 30 projects in R&D involving 60 Indian partners amounting to more than € 50 million, but we can certainly do more.
Telecom Regulator Sarma said his ambition is to connect 225.000 villages to broadband in next 2 years. No small challenge.
All in all, a very useful visit.
P.S. I learned Minister Sibal is also a poet. So Herman Van Rompuy is in good company!
P.P.S. Did you know? EU now offers Protected Geographical Indication status to “Darjeeling” tea. That’s the first just right for an Indian product.
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