NEW DELHI, 4 July 2006 — Several key agreements were signed yesterday between India and Spain after Prime Minister Manmohan Singh held talks with his Spanish counterpart Jose Luis Rodriguez Zapatero.
With an eye on boosting Spanish investment here, Zapatero arrived here on Sunday evening accompanied by Foreign Minister Miguel Angel Moratinos, a 50-member delegation of businesspersons and a large media contingent. Marking the 50th year of establishment of Indo-Spanish ties, Zapatero’s visit is also the first of a head of state from either side in 13 years.
India and Spain signed agreements on providing legal assistance in criminal matters and on institutionalizing their political dialogue. A memorandum of understanding was signed between Spain’s Technology Board (TDB) and India’s Center for Development of Industrial Technology (CDIT).
The primary purpose of Zapatero’s visit is to boost economic relations. Signaling this, Indian officials said: “India’s economic linkages with Spain are growing: Bilateral trade has increased from around $900 million in 2000 to $2.7 billion in 2005. There is a growing trend of setting up of Indo-Spanish joint ventures in India. Some major Indian companies in automotive, pharmaceutical and information technology sectors are present in Spain.”
India is also keen to use Spain as a springboard for investments in European and Latin American markets.
On its part, Madrid is interested in increasing Spanish presence here and is hopeful that Zapatero’s visit will overcome the “historical” ignorance between the two countries, Spanish officials said. At present, around 40 small or medium-sized Spanish firms have offices in India. Sectors that Spain is interested in increasing investment here are electrical, civil aviation, railroad, highway, tourism, automobile manufacturing, communications, constructions and others.
Madrid’s “Look-Asia” policy intends to expand Spain’s commercial range beyond European Union, they said.
While addressing Indian executives, Zapatero said: “We foresee an explosion of Spanish presence in India. Spain can learn from Indian sectors such as IT and biotechnology while Spain can give support to the infrastructure sector of India, which would need 100 billion euros ($127.7 billion) in the next 10 years,” he said.
India being an “exciting destination,” Spain would give its official backing to programs and joint ventures in sectors such as food processing, tourism, renewable energy, financial services and infrastructure projects here, he said. “The fact that our banks have begun opening branches in India is an example of growing cooperation in the financial services sector,” Zapatero added.
The Spanish prime minister addressed an India-Spain business meeting, which was followed by a lunch hosted in his honor jointly by business associations Confederation of Indian Industry (CII), Federation of Indian Chambers of Commerce and Industry (FICCI) and Associated Chambers of Commerce and Industry (Assocham).
Madrid gave a green signal last week to opening of a second trade office in India.
