'Exports prospects to EU bright'

India has great growth potential for exports to the European Union (EU) countries. Though China is a competitor, India has opportunities of tapping a wider market as it is concentrating on good quality products.

The export opportunities to EU comprises a gamut of items like textiles, drugs, auto parts, wooden products, IT, scientific opportunities and processed food.

The scope for export of these and other items from India, more so from Karnataka, was highlighted at a training-of-trainers (ToT) programme.

The programme was organised in Mysore by the Federation of Karnataka Chambers of Commerce & Industry (FKCCI) and the Mysore Chamber of Commerce & Industry (MCCI).

Highlighting the export opportunities, German Confederation of Small Business and Skilled Crafts (ZDH) and Foundation for Economic Development and Vocational Training (SEQUO) Partnership Programme Project Co-ordinator Jugergen Henkel said that though some EU members have voiced their opinion against EU, the economic advantages of EU are very relevant.

Later speaking to Business Standard on the stand of France and Netherlands, Juergen Henkel said, "European Union is not in question. Economic benefits are so high, it will not affect."

"Germany has benefited from increasing exports to many other countries, including EU members. Why would they give up these expectations," he queried.

Referring to Germany's strict import conditions, he said, "Germany has to do more homework to import from India. There is scope for liberalisation."

FKCCI president S Balu said the programme targetted SME entrepreneurs for promoting exports to EU countries, Germany and Denmark in particular. "The project, started in April 2004 extending to over two years, is aimed at increasing trade flow into the EU through a series of training programmes."

The direct beneficiaries under the ToT programme will be 100 male and at least 20 female trainers from business associations in South India. The indirect beneficiaries are expected to be 2,400 entrepreneurs in the states of Karnataka and Tamil Nadu.

In the present era of globalisation, businessmen need to compete globally. For this, they must cut their cost and make their products qualitative to meet the world expectations, said deputy commissioner S Selva Kumar, in his inaugural address.

MCCI president H N Ramathirtha told the participants to remember that they are supplying to a sophisticated market, which is highly competitive also. They should also develop effective communication skills for effectively competing in the global market.

Though the 25 countries of the EU have their own rules and regulations, potential was in abundance for SMEs to export to those member-countries, particularly from Karnataka, said R C Purohit.

In global trade. India's share is only 1 per cent, while that of China is 5 per cent, Japan eight per cent and USA and EU 20 per cent each. "Even if we increase our exports by 1 per cent, it will be phenomenal," said industrialist Tallam Venkatesh.

Though EU is going through the process of market integration, India has good trade relations and the bilateral trade is steeply increasing. Businessmen should take opportunity of this and step up exports to EU member nations, he added.