Speech by EU Ambassador to India Hervé Delphin at the official launch of the Federation of European Business in India (FEBI)

Honourable Minister Shri Piyush Goyal,

Dear Ambassadors,

Distinguished Representatives of the Indian Administration,

Dear Representatives of the Industry and Business,

Mr. President, Members of Board, Secretary General and Members of FEBI,

Dear Guests!

Namaskar ! Welcome !

Today marks a symbolic moment. We gather here to celebrate the official inauguration of the Federation of European Business in India (FEBI).

As the Honorary President of FEBI, I am proud to officially announce that FEBI has been born as the official EU Chamber of Commerce in India.

This represents an important milestone. Not just for FEBI as an organisation; not just for EU business in India but also for EU-India relations as a whole !

It has been quite an extraordinary journey since EU Delegation to India came up two years ago, with the idea to create a European chamber of commerce in India.

It is now a moment to thank those who have been involved in the development of FEBI: my colleagues from the EU Delegation, representatives of Member States' missions, their bilateral chambers of commerce and EU companies. Without you this idea would have never come into being. My special thanks go to the FEBI president, Rémi Maillard, Vice President, Sanjay Tiwari, the Vice-President, the other Members of Board of Directors as well as to the Secretary General Ms. Sonia Prashar.

The EU Delegation has been the patient godmother and the caring mid-wife who helped give birth to FEBI. It is now for you to take over the torch and lead FEBI into adulthood! I am confident that under the skilled leadership of its Board, FEBI as a self-standing and independent organisation, will play an important role in the economic ecosystem of India.

The creation of FEBI was somehow overdue, considering the expanding footprint of European companies in India. As we know business companies vote with their feet.

The geostrategic and geo-economic importance of India had become more manifest, the opportunities for business more tangible. This has been reflected in the constant sustained growth of EU-India two-way trade, at an average rate of over 10% a year. Today the EU is the largest trading partner of India in goods, accounting for 12% of India's total trade. The EU block is one of the leading trading partners in services. It is also one of the main sources of FDI in this country, representing 21% of total FDI to India.

European companies play an increasingly important role in India's economy. There are about 4,500 EU companies present in India, which directly or indirectly give jobs to 6.7 million Indians. These are usually high quality and well-paid jobs. Most of these companies are led by Indian managers and draw on Indian talent. They not only create high-quality jobs, but contribute to India's economic growth, investments, exports, increase productivity of Indian economy, bring know-how, develop human resources and foster innovation.

They come to India, they invest in India, they 'Make it in India', dear Minister !

European companies will play their part and contribute to India achieving its goals of becoming a manufacturing hub and a developed country.

As we are among friends this afternoon, let me be honest. We are doing well. But we could and should do better!

If one considers the respective size of our economies EU (the 2^nd) and India (the 5^th largest in the world) andthe size of our markets, EU-India dual trade should be at least twice if not three or four times higher than what it is at present. We should move from current €120 bln to 250 or 300 bln easily or even 500 bln per year.Unlike with its other big trading partners, India has a trade surplus with the EU meaning that it exports more than it imports (with more than 17% of India's exports going to the EU). Expanding trade will be good for India in the first place!

Trade can indeed increase if, together we establish the right conditions for the EU-India economic and commercial ecosystem to flourish.

This brings me, as expected, to mention the negotiations on the EU-India Free Trade Agreement.

As you know, the 9^th round of the FTA negotiations took place in Delhi two weeks ago. The 9^th in the space of two years, which is quite unprecedented by our standards. Yet, despite the best efforts of the negotiating teams, progress has been marginal. Fundamental differences are yet to be overcome.

Both sides have to re-calibrate. Don't get me wrong! Recalibrating does not mean aiming at a cheap, low-cost version of an FTA. Interest for both sides should be a meaningful FTA.

Both sides must reflect on potential packages of mutual concessions, which would see both parties move into trade policy territory where they have never ventured so far. The EU will be ready to do its share, but this will also require India to cover a large part of the distance that still separates us for the time being.

The time has come for such a political call. As soon as the new European Commission will be confirmed by the European Parliament and in place - by end of year, it should be time for meetings at political level to take stock and identify the pathway to an agreement. EU Commissioner-designate for Trade, Mr. Maros Sefcovic, has the FTA with India clearly on his radar and even in his mission letter!

Let us not lose sight of what is at stake. A commercially meaningful trade agreement would be an essential contribution to, if not a litmus test, to a new ambitious EU-India Strategic Agenda as called by Leaders on both sides.

An EU-India Summit is to take place next year in Delhi. It will be a pivotal moment to give to our relations new impetus and its full strategic meaning. All strategic considerations point to EU and India as 'natural partners' when it comes to the matching of respective interests.

The fact that the EU proposed to India to establish a Trade and Technology Council (TTC) - only the second one the EU has with its partners, the other one being with the US- speaks for itself of the mutual interests and benefits. The TTC also presents a great potential, serving as a catalyst for deepening the links between our tech and digital sectors (clean tech, green energy), from research to innovation and market uptake and building resilient value chains.

This brings me back to FEBI.

FEBI's main mandate is to bring the voice of the European business and carry out policy advocacy vis-à-vis the Indian Government but also the European Governments on what could foster a friendly pro-business environment and what business opportunities they envision.

In a world of diversification and de-risking of supply chains, India has every interest in positioning itself as the preferred "place to go" to. This can be achieved by maximising the success stories of European businesses in India but also by addressing issues that constrain European businesses such as e.g. Quality Control Orders, stringent import licenses or local content requirements, legal uncertainties regarding investment protection, taxation.

Addressing this, would result in more European investment to India, more manufacturing in India, more jobs in India. That is the reason why alongside the FTA, the Investment Protection Agreement and the TTC, FEBI stands as a cornerstone of the EU-India economic agenda.

That is the reason why FEBI is a 'force multiplier' and 'win-win' enterprise.

I am sure that FEBI will prove its worth very quickly, will see its membership increasing significantly, and will stand as the expression of confidence and commitment of Europe towards India.

Long live FEBI, Long live the EU-India partnership !

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