New Delhi: IT and ITeS is one of the key sectors where India-Central Europe business partnerships and collaborations will gain significant ground, industry body Ficci said in a report on Tuesday.
Ficci said India’s bilateral trade relations with the Central European economies have not grown to levels expected of economic engagements between the two dynamic regions.
As per trade data released by the Ministry of Commerce and Industry, India’s total trade with Central European region was only 5.83% of India’s total trade with all countries in FY 2014-15.
Ficci said the 30-country Central European region is of vital importance to India in strategic and economic terms.
However, India-Central Europe trade volumes are expected to grow at an accelerated rate in the coming years as businesses on both sides forge long-term partnerships, Ficci said.
Ficci in its report titled ‘India and Central Europe: Harnessing Business Complementarities’ has tracked the emerging trends in the bilateral economic and business ties and potential areas for deep bilateral cooperation.
As per the report, IT & ITeS is one key sector that promises to unfold major cross-border partnerships.
“In keeping with India’s core strengths in the IT & ITeS space, major Indian IT & ITeS firms are scouting for business opportunities in the Central European region. A few such ventures have already gained great traction,” it said.
Ficci said reports indicate that Eastern Europe is fast becoming a go-to location for Indian IT players both for talent and for the captives that dot the region.
The report said size of the strategically located Turkish IT market is forecast to increase from $7.9 billion in 2012 to $14.4 billion by 2016, making it one of the fastest growing in emerging Europe.
It added a cultural and geographical position as a hub between Europe and the Middle East only accentuates the significance of the country’s large market size for Indian IT vendors.
Investment ties are also deepening in the pharma space, it added.
The industry body said accelerated bilateral trade flows will also pave the way for greater bilateral investment flows.
“As on date, FDI inflows from Central European countries have not grown at any significant rate although India has emerged as one of the most attractive investment destinations.
Cyprus and Switzerland are the 8th and 10th highest investing (FDI) countries in India,” it said.