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2011-03-17

India's Restrictive Trade Policy hampers economic ties

EU not happy over it

India's restrictive trade policy is weighing heavy on the economic ties with the European Union, says a report. India's trade regime and regulatory environment still remain comparatively restrictive, according to the "Trade and Investment Barriers Report 2011" published recently by the European Commission, the EU's executive body.

"With regard to intellectual property, some improvement in the IPR enforcement infrastructure has been reported, however there are still significant concerns about India's response to counterfeiting and piracy."

"Furthermore, in the area of procurement, the Indian legislative framework remains incomplete. Major reforms are needed to ensure compliance with international standards and a predictable environment for bidders," the EU report said.

The report argues that the current trade performance between the EU and India falls far short of its potential.

In four years, EU-India trade has increased by 31 percent to over 53 billion euro in 2009 and EU investment to India has more than quadrupled since 2003 to 3.1 billion euro in 2009.

 

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