Indo-Italy trade to swell to USD 10 billion in four years

Kolkata, Feb 12: Department of Foreign State in Italy has identified eight major areas for pushing the bilateral trade from the present USD 4.6 Billion to USD 10 billion by 2009 and set up an exclusive 'Go India' fund for Euro three million for the promotion SME sector in both the countries, Italian Minister of International Trade Emma Bonino said here today.

Speaking to newsmen after inaugurating the two-day Indo-Italian synergy programme here today, he said that the areas which had been identifeid for the promotion of trade volume are film making, engineering, traditional crafts, IT, bio-technology, infrastructure and logistics, chemicals and farmaceuticals and retail sector.

She said that the Italian Small Industry confederation had also set up a separate of Euro 320 million for development of infrastructure and logistics in India.

Regarding the 'Go India' fund of Euro 300 million Ms Bonino said that in order to promote the Italian SME investing in the Indian market, seven leading Italian banks have joined hands to set up the fund and provide financial assitance to those companies having an annual turnover of more than Euros 250 million.

He said Go India fund, set up only last week, is intended as a pioneer initiative to help the Indian and Italian SMEs to expand their wings in each other's country.

Their range of services included medium and long term financing with full insurance coverage.

Earlier, three MOUs were signed between the Italian and Indian firms on bulk trade, leather, food processing and in supplying of anti-pollutants.

Also speaking on the occasion, President of Italian Small Industries Confederation Giuseppe Morandini, hailing the tremendous growth of SME sector with and particularly West Bengal. He, however, underscored the need of setting up large number of SEZs in the country overcoming all the present teething problems.

Referring to the availability of low cost energy in West Bengal and many other parts of India, Mr Morandini said that this had made the state far more competitive than many others abroad and as such representatives of more than 350 leading Italian countries have come to this week long tour of India to interact and explore the opportunities of business through mutual interests.

Chairman of ABN Amro, the largest private sector bank in Italy, Francesco Spilelli said that 13 Italian banks have come to India with this delegation though at present six Italian banks are operating in India.

He said two more leading banks from his country, namely Di-Banca Di Roma and Monte-Dei Paschi, are setting up their branches in Mumbai and delhi respectively within a next couple of weeks.

However, none of the Italian banks had any plan of coming to Kolkata for now, where only ABN Amro was operating with two branches.

Referring to the areas where two-way trades could be increased in West Bengal, Ms Bonino said they included the areas like leather, food processing and gems and jewellery.

She also emphasised the need for more direct flights between the two countries but regretted that neither Alitalia, the national carier of Italy, or any private aviation Italian company had plans to come to West Bengal despite the rapid growth.

UNI