India-European Union Relations

and (Belgium), including date of establishment of diplomatic relations:

India enjoys traditional, warm and friendly relations with Belgium. Trade relations go back to the 17th century when ships sailed from Ostend to Indian ports. India established diplomatic relations with Belgium in 1948 and there has been regular interaction at high levels since then.

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Political relations:

India and Belgium share common values of democracy, pluralism and rule of law and are committed to multilateralism in international relations. On the political side, India’s aim is to enhance interaction at the highest political level. During the visit of EAM in September 2004 and June 2005, he held detailed discussion with his Belgian counterpart Mr. Karel de Gucht on matters of bilateral international regional importance. Foreign Secretary Mr. Shyam Saran held in-depth discussions with the Belgian side during his visit in June, 2005. In a significant development Belgium has decided to co-sponsor the G-4 Resolution on UNSC reforms.

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Important Bilateral Treaties and Agreements, with brief notes:

• Agreement on Avoidance of Double Taxation- August 1997

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• Bilateral Investment Protection Agreement signed between India and BLEU in November 1997.

• Cultural Agreement- September , 1973

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• Air Services Agreement- April, 1967

Commercial and Economic Relations, with trade, aid and investment details:

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Commercial and Economic relations are governed by Agreement on Economic, Industrial, Scientific and Technological Cooperation between BLEU and India in March 1990 and other EU and WTO Agreements. Belgium has emerged India’s second largest trade partners within EU with bilateral trade in 2004 at 6.49 billion euros, 75% of which is in diamonds. India’s aim is to diversify bilateral trade which is dominated by diamonds to areas of information and communication technology, pharmaceuticals, biotechnology where there is a tremendous potential for synergy. A delegation from Belgium led by the Chairman of the Senate Finance Commission visited India in January 2004 to study India’s economic and financial policies. At the popular level Belgium, but more so Antwerp, is known as the world’s diamond trade centre to which the Indian community based there has contributed greatly.

The liberalization of the Indian economy in the 1990s aroused Belgian interest in India. The initial interest translated into an increasing number of official and business visits to India in recent years. Crown Prince Philippe led three economic missions to India(1995,1998, 2005). The visits generated enormous interest on either side resulting in several viable deals in the form of joint ventures and technology tie-ups. According to the Secretariat for Industrial Assistance(SIA) Belgium’s total investment approvals into India for the period 1991- Sep.,2004 touched a record figure of Rs. 46,402.5 million (approx. US $ 1.2 billion), with 1998 being a particularly good year account for about 80% of this amount. The actual investment flows for this period, however, have not kept pace with the approvals. There are an estimated 231 joint ventures, most in the small and medium 8 category. Belgium Company Tractabael is the largest investor. BARCO and BEKAERT are established in India for many decades. During the 2005 visit of the Economic Mission, 5 MoUs were signed. CII signed 3 MOUs with Belgian companies Agoria, VBO, Flanders Institute of Logistics. IBA Pharma of Belgium and MK Ali Manekia, a non-resident Indian signed MoU for research and development activities in the health sector. IBA Molecular Imaging signed the MoU with Indian Diagnostic Laboratories of Dewang Chand Agrawal for Molecular Research.

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Major items of Indian exports to Belgium are iron & steel products, minerals fuels, oils and products thereof, apparels and clothing accessories, organic chemicals, fishery products, man made staple fibres, electrical machinery etc. Major items of imports to India from Belgium are precious stones and metals, boilers, machinery and mechanical appliances, iron & steel products, pharmaceuticals, organic chemicals, plastic & its products, electrical machinery & equipments, photographic & cinematography equipments, measuring equipment, wood pulp etc. In the case of investment, some Indian companies have acquired business in Belgium. Matrix India took over Docpharma; Crompton Greaves India acquired Pauwels Group and Jubilant of India took over PSI.

S&T Relations, cooperation in other fields such as Railways, Space, IT,

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Biotechnology, Infrastructure, Mining etc:

A Belgian software and satellite manufacturing company Verhaert signed a contract with ISRO in April, 1998 for launching a 100 kg satellite through PSLV-C3 in the year 2000. The satellite was subsequently launched successfully from Sriharikota in August, 2001. This is the first time that an European company has ever come to a commercial agreement with ISRO for launching low orbit Satellites. An MOU for cooperation in space technology was signed between ISRO and the Techspace Aero during the Belgian Crown Prince’s visit in November, 1998. A seminar on cooperation in space sector and space related technologies was held in Bangalore during the visit of Crown Prince Philippe of Belgium in March, 2005. Belgian companies are participating in EU’s Galileo project with which India is negotiating a cooperation agreement.

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Cultural Troupes – Incoming and Outgoing over last few years:

From India

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A bilateral Cultural Agreement was signed with Belgium in September, 1973. A Cultural Exchange Programme(CEP) covering the years 1996-98 was signed with the Flemish Community in March, 1996. An India Study Centre was set up in Antwerp in 1996. There is a school of Indian classical music in Brussels and that of Indian classical dance in Ghent, both run by Belgian artists. Many Indian artists, even outside the CEP, visit Belgium. Embassy is planning an important cultural event in 2006 focusing on India’s diverse and 9 composite culture. Under CEP, an India-based ICCR –sponsored professor is currently teaching Hindi at the Belgian University of Ghent. Several Indian students are studying in Belgian universities, under scholarships provided by the Flemish/Belgian governments. The following ICCR sponsored troupes have performed in Belgium.