Ministry of Defence Government of India MOD – FICCI Defence Business Delegation to PORTUGAL July 11 - 12, 2019 MOD – FICCI Defence Business Delegation to PORTUGAL July 11 - 12, 2019 Contents INDIA-PORTUGAL TRADE RELATIONS. 1 DELEGATES PROFILE . 5 MOD – FICCI Defence Business Delegation to PORTUGAL July 11 - 12, 2019 Contents INDIA-PORTUGAL TRADE RELATIONS. 1 DELEGATES PROFILE . 5 INDIA-PORTUGAL TRADE RELATIONS Introduction Portugal has become a diverse and increasingly service-based economy since it joined the European Community - the EU's predecessor - in 1986. Over the following two decades, successive governments privatized many state-controlled firms and liberalized key areas of the economy, including the financial and telecommunications sectors. The country joined the Economic and Monetary Union in 1999 and adopted the Euro on 1 January 2002 along with 11 other EU members. Their GDP growth is projected to remain broadly stable at around 2% per year in 2019 and 2020. Domestic demand and further export gains will support economic activity. Bilateral Relationship with India and Investment Trends A bilateral Agreement on Trade, Economic, Industrial and Technical Cooperation was signed in 1977 to give an impetus and improve bilateral trade relations. To further facilitate and enhance trade, a series of trade agreements were signed viz., an Agreement on Economic and Industrial Cooperation (signed in April 2000); Bilateral Cooperation Agreements between FICCI and the Portuguese Institute for Foreign Trade and Investment (ICEP) in 1992. Bilateral trade has been growing steadily over the years but has remained modest and below potential. However, in the wake of the global economic crisis in 2008 and the continuing crisis in the developed world, Portugal has begun increasingly to look at developing countries including India (trade avenues). Additionally, with a new and younger generation of business leaders there are greater efforts at 1 INDIA-PORTUGAL TRADE RELATIONS Introduction Portugal has become a diverse and increasingly service-based economy since it joined the European Community - the EU's predecessor - in 1986. Over the following two decades, successive governments privatized many state-controlled firms and liberalized key areas of the economy, including the financial and telecommunications sectors. The country joined the Economic and Monetary Union in 1999 and adopted the Euro on 1 January 2002 along with 11 other EU members. Their GDP growth is projected to remain broadly stable at around 2% per year in 2019 and 2020. Domestic demand and further export gains will support economic activity. Bilateral Relationship with India and Investment Trends A bilateral Agreement on Trade, Economic, Industrial and Technical Cooperation was signed in 1977 to give an impetus and improve bilateral trade relations. To further facilitate and enhance trade, a series of trade agreements were signed viz., an Agreement on Economic and Industrial Cooperation (signed in April 2000); Bilateral Cooperation Agreements between FICCI and the Portuguese Institute for Foreign Trade and Investment (ICEP) in 1992. Bilateral trade has been growing steadily over the years but has remained modest and below potential. However, in the wake of the global economic crisis in 2008 and the continuing crisis in the developed world, Portugal has begun increasingly to look at developing countries including India (trade avenues). Additionally, with a new and younger generation of business leaders there are greater efforts at 1 engagement in the economic and commercial spheres including in new areas such Key Highlights of Indian Defence sector: as infrastructure, IT, renewable energy, and pharmaceuticals. n India ranks amongst the top 5 countries in the world in terms of its military India-Portugal Defence Cooperation expenditure, making it one of the most attractive markets for defence. n India and Portugal signed the first-ever MoU in defence cooperation during n Government of India's (GOI) 'Make in India' policy is geared towards Portuguese PM Costa's visit to India in January 2017. The Portuguese defence collaborative approach for manufacturing. industry organisation idD – Plataforma das Indústrias de Defesa Nacionais n GOI target to achieve Rs 35,000 crore (approx. 4.55 billion EUR) worth of anchored a defence delegation of 8 Portuguese defence companies during PM military exports by 2025. Costa's visit to India and held meetings with Indian defence companies, organised by FICCI. n Co-production: Relationship with Foreign original equipment manufacturer (FOEM) shifting from vendor-buyer to co-developer and co-producer. FOEMs n There are over 370 Portuguese defence companies under the idD umbrella. are invited to set up manufacturing base in India. Most of them have niche technologies in sectors like AUVs (Autonomous Underwater Vehicles), ammunition destruction through gas, ship building, FICCI -idD Mou Brief naval communication systems/equipment, navigational systems, robotics and automation, aeronautics, military clothing, etc. Portugal is also a NATO idD (Portuguese Platform for Defence Industries from Portugal) & FICCI (Federation member. of Indian Chambers of Commerce and Industry) from India signed a Memorandum of Understanding (MoU) on July 17, 2019 at Farnborough Air Show 2019 at UK. n There have been study visits from India's National Development Council (NDC) to Portugal and goodwill visits of Indian naval ships. The INS Delhi and the INS MoU was signed by MGEN Henrique Castanheira Macedo, President of the Board, Beas, led by the Commander of the Western Naval Fleet, visited Portugal in idD & Mr Vivek Pandit, Assistant Secretary General, FICCI. November 2009 and the INS Tarangini in October 2015. The INS Tarkash also The parties signed this MoU with the following objectives: paid a goodwill visit in Lisbon on May 14-17, 2017, during which bilateral meetings were held between the two navies. INS Tanrangini visited second time I. To promote cooperation in the area of defence industry, with a view to bilateral to Port of Lisbon for its LOKAYAN tour from June 4-7, 2018. economic strengthening between the two countries in these areas. n 16-member Portuguese defence companies delegation anchored by idD II. To encourage the promotion of contacts between companies, public participated in DEFEXPO-2018 in Chennai from April 11-14, 2018 and held the institutions of both countries and potential business partners, including the meetings with Indian Ministry of Defence officials including Defence Secretary, exchange of experts to be established by agreement of the parties. and Indian Defence PSUs and B2B meetings, organised by FICCI, with Indian III. To support participation in initiatives such as fairs, exhibitions, symposia and defence companies. other meetings, agreed between the parties, designed to promote and develop n India and Portugal are exploring possibility of joint defence cooperation in the cooperation between the two entities. field of aviation including support and maintenance of Embraer aircraft and IV. To provide the economic agents of the two countries with timely information on shipbuilding. Portugal specialises in non-lethal dual use items, they have a specific opportunities for the development of bilateral economic relations. vibrant defence industry and are looking to partner India under the Make in India program. V. To promote and support trade missions, institutional links as well as business and other initiatives that bring together potential business partners. 2 3 engagement in the economic and commercial spheres including in new areas such Key Highlights of Indian Defence sector: as infrastructure, IT, renewable energy, and pharmaceuticals. n India ranks amongst the top 5 countries in the world in terms of its military India-Portugal Defence Cooperation expenditure, making it one of the most attractive markets for defence. n India and Portugal signed the first-ever MoU in defence cooperation during n Government of India's (GOI) 'Make in India' policy is geared towards Portuguese PM Costa's visit to India in January 2017. The Portuguese defence collaborative approach for manufacturing. industry organisation idD – Plataforma das Indústrias de Defesa Nacionais n GOI target to achieve Rs 35,000 crore (approx. 4.55 billion EUR) worth of anchored a defence delegation of 8 Portuguese defence companies during PM military exports by 2025. Costa's visit to India and held meetings with Indian defence companies, organised by FICCI. n Co-production: Relationship with Foreign original equipment manufacturer (FOEM) shifting from vendor-buyer to co-developer and co-producer. FOEMs n There are over 370 Portuguese defence companies under the idD umbrella. are invited to set up manufacturing base in India. Most of them have niche technologies in sectors like AUVs (Autonomous Underwater Vehicles), ammunition destruction through gas, ship building, FICCI -idD Mou Brief naval communication systems/equipment, navigational systems, robotics and automation, aeronautics, military clothing, etc. Portugal is also a NATO idD (Portuguese Platform for Defence Industries from Portugal) & FICCI (Federation member. of Indian Chambers of Commerce and Industry) from India signed a Memorandum of Understanding (MoU) on July 17, 2019 at Farnborough Air Show 2019 at UK. n There have been study visits from India's National Development Council (NDC) to Portugal and goodwill visits of Indian naval ships. The INS Delhi and the INS MoU was signed by MGEN Henrique Castanheira