Belgium Can Provide Technical Solutions To Modernize Indian Railways Says Minister
During the visit of Belgium King Phillipe and Queen Mathilda to India from November 5 to 11, cooperation in the field of innovation was purported to be the key area of focus according to a statement made by Belgian Ambassador to India Jan Luykx prior to the visit.
Billy Borsus, Minister-President of the Walloon government, accompanied the royal couple to India in a delegation and participated in a seminar on the ‘Innovative Belgian technologies for the heavy industry’.Borsus feels India and Belgium can uncap the immense potential of trade via an FTA and a strong Belgian presence in the Indian Railways sector.
Edited Excerpts from his interviews.
India and Belgium had signed an MoU for effective co-operation, development and modernization of Railways in 2012, what is the current status of the MoU’s and what are its developments? What best does Belgium offer at this time?
Belgium can offer a variety of technological solutions in the railways sector. We have advanced technologies for the railways sector. We can help in station Equipment, to Rolling stock, infrastructure design and électrification, and passenger comfort. We showcased it effectively in one of the seminars during the state visit to New Delhi. Belgian companies can provide real-time solutions, from passenger information, systems for trains and metros and advanced coupling systems.
Is there a potential trajectory of an increase in FDI inflows to Belgium from India and vice versa?
Belgium is largely a country of SMEs, just like India. The majority of these companies operate stepwise when exploring a new market such as India. This gradual approach first implies finding the right local partners, distribution channels, and geographical focus areas. Investing in a local sales or manufacturing unit (FDI inflow) comes at a later stage. Currently, about 150 Belgian companies already have some form of physical presence in India.
Even though bilateral trade has increased over the years between the two countries, what do you feel are the impediments and challenges which have dampened trade relations and not let it reach its full potential?
Both countries would certainly benefit from a broad Free Trade Agreement (FTA) covering as many sectors as possible. A number of non-tariff barriers are still complicating imports in a number of sectors. Both parties understand the importance of trying to reach an FTA. Although the ongoing discussions between the EU and India to reach an FTA have been going on for a number of years, they are highlighting the will of the different parties to come to an agreement.
Given that Belgium ’s exports to India include gems & jewellery; chemicals & chemical products, base metals & articles, mineral products, etc. have policy changes in India such as GST, and Demonetisation been impediments or a catalyst with the respect to the terms of trade between the two countries?
GST and demonetisation are two policy changes that have had considerable impact in India. However, their impact abroad is much more limited, especially when it comes to demonetisation (as most foreign transactions are non-cash based). Belgian companies, in general, are of course welcoming any measure that is bound to simplify the business environment in India, and GST is a measure that can potentially simplify the operations of Belgian companies that already have a form of presence within India.
How have Belgium and India worked together or collaborated on major global issues such as nuclear disarmament, climate change, trade, and global economic architecture?
Belgium and India have both been involved in multilateral talks on these global issues together with the majority of nations in the world. They share similar principles when it comes to world peace and security, climate change mitigations, or improvements in worldwide trade.
