Trade with Belgium goes beyond diamonds

Bengaluru: Non-diamond trade dominated by small and medium enterprises has created certain dynamics for bi-lateral trade between Belgium and India.

“Small enterprises in pharmaceuticals, biotech, clean energy and automotive ancillaries are shaping the bi-lateral trade to take it to the next level,” said Mr Pierre Vaesen, Belgium ambassador to India.

“At present the bi-lateral trade is largely driven by gems and jewellery which constitutes about 80 per cent of the bilateral trade. We want to diversify this trade to other sectors,” he added.

Belgian business interests in India cover ports, construction, banking and finance, chemicals and fertilisers, and solar energy. Zeebrugge port has been showcased in India to take up modernisation of ports.

“There has been increasing interest on India from Belgian companies and we are looking forward for reforms to take-off in India, especially foreign direct investments, in certain key sectors like retail, aviation and agriculture sectors,” said Mr Vaesen.

Belgium has emerged second biggest trade partner of India after Germany. Indian exports to Belgium touched €3.6 billion in 2010 and is expected to maintain the same trend in 2011. In the last decade (2000 to 2010), about 150 Belgian companies have invested $350 million in India and in return about 75 Indian companies have made Belgium their home to tap European markets.

In terms of geographic spread of Belgian companies, Mr Vaesen said western region (Mumbai and Pune) tops the list with 38 per cent and is followed by northern region (New Delhi) 24 per cent and South (Karnataka) 14 per cent and East (West Bengal) one per cent.

According to Mr Jayant Nadiger, Trade Commissioner of Flanders Belgium, “The Flemish Trade office has been operational for South India based in Bangalore since 1999. Flanders Belgium Industry has been active in south India since then in sectors like logistics, manufacturing, services, research and development among others.”

“Baekart, LMS, Xsysys, UCO, are among some of the Flemish companies present in South India and a few from this region have also established business in Flanders. ,” he added.