This is borne out by the huge FDI in the past few years that touched almost US $ 16 billion in the last financial year. The tax reforms in India would further impress the Austrian companies as value-added tax has already been introduced in India about 2 years back, while the goods and services tax is likely to be introduced by 2010, the Minister informed.
Outlining the huge advantages, which India offers in terms of large number of young people in India that could take care of shortage of working hands in the developed countries, the Minister stated that the huge skilled human resource base in India could be combined with Austrian technology and investment to create mutually beneficial situation.
Shri Kamal Nath expressed happiness that the Austria-India Business Interest Group set up in Vienna and Indo-Austria Business Economic Forum set up in India are playing an important role in creating awareness about opportunities on both the sides.
The Road Show organised to supplement these efforts held in Austria with a focus on automotive, transport, energy and infrastructure sectors was a great success, he informed.
Shri Kamal Nath called on the need to encourage the strong SME sector in Austria with 85% of the companies having less than 100 employees for establishing business relations with the SME sector in India to provide a strong foundation for economic relationship.
The bilateral trade between India and Austria is showing a consistent growth. During 2005-2006, bilateral trade was of the order of US $ 476 Million and touched US $ 588 Million during 2006-07.
Major export items to Austria include drugs, pharmaceuticals & fine chemicals, machinery & instruments, cotton yarn, fabrics etc and footwear leather & leather goods.
The major imports from Austria are machinery except electrical & electronics, transport equipments, iron & steel, organic chemicals etc.
The main areas of bilateral cooperation could be tourism, waste management & recycling, rail transport, telecommunications, energy production & distribution and aviation.
Press Information Bureau Government of India
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