Indian officials hope their country and the European Union will have a comprehensive trade and investment agreement by next year.

The optimistic assessment came at the end of the one-day India-EU summit in New Delhi, where Indian Prime Minister Manmohan Singh was quoted as saying, "We are engaged in negotiations over a broad-based trade and investment agreement with the EU. I am hopeful that by the next summit it will be in place."

The 27-member EU is India's largest trading partner and one of its largest foreign investor, although China too is increasingly competing with India for the same, the Voice of America reported Saturday.

An Indian economist was quoted as saying a trade pact with EU will not come in one sweep but in phases because some industries and agricultural groups on both sides may be affected adversely.

The VOA report said India wants to bring its manufacturing base at par with its much-praised services sector to provide additional incentive to conclude the trade deal.

But India also has to contend with Europe's greenhouse gas emissions standards. India says it needs to increase fossil fuel use to expand its economy and reduce poverty. // Copyright 2007 by United Press International


Publication date: 03 December 2007   

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