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European Union (EU) and India on Friday announced the establishment of an Investment Facilitation Mechanism (IFM) for EU investments in India.
Importance of IFM
- The mechanism will allow for a close coordination between the European Union and the Government of India with an aim to promote and facilitate EU investment in India.
- Key objectives of paving the way for identifying and solving problems faced by EU companies and investors with regard to their operations in India.
- IFM will cover new investors as well as those already established in India.
- The IFM is also going to serve as a platform for discussing general suggestions from the point of view of EU companies and investors
- IFM would boost and encourage the EU investors to avail the investment opportunities available in India.
- EU-India aims to oppose protectionism and to work in favour of a fair, transparent and rule-based trade and investment environment.
EU investment
Trade and Investment are key elements of the EU-India Strategic Partnership launched in 2004. Along with being the first trade partner in goods and services, EU is one of the biggest provider of foreign investment in India, with a stock exceeding $81.52 billion. There are currently more than 6,000 EU companies present in India, providing direct and indirect employment to over 6 million people.
Source : The Hindu
GS II : Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests