Meeting on Occasion of Visit of H E Mr Leszek Miller, Prime Minister of The Republic of Poland
February 17, 2003, New Delhi

Special Address by HE Mr Leszek Miller, Hon'ble Prime Minister of The Republic of Poland

"PROSPECTS OF ECONOMIC COOPERATION BETWEEN POLAND AND INDIA"

Mr Chairman, Members of the Management of CII and FICCI, leaders of Indian business, Ladies and Gentlemen,

I wish to express my satisfaction and joy at this opportunity of meeting you - the leading representatives of business and industry of India.

I am especially glad that I can meet the representatives of the Confederation of Indian Industry, an organization of an almost 110-year traditions and the Federation of Indian Chambers of Commerce and Industry.

I respect and appreciate your organisations and their great contribution to the development of the Indian economy.

I am convinced that this forum will provide a good basis for our future joint undertakings in the area of economy and will bring results in the form of business ventures. They should reflect the capacities of our countries at the beginning of the 21st century. Both Poland and India have become significantly modernised when compared to the period of only a few years ago.

Presently Poland is a democratic, stable and successfully developing country.

In 2002 we achieved a moderate GDP growth of 1.3%, but the symptoms of acceleration are already in sight.

We have noted significant improvement in the sector of industry and services, at a record low inflation, which averaged 1.9 % in 2002 and by the end of January 2003 it dropped to 0.5%.

We are taking measures to bring us back to the path of fast growth, targeting the GDP growth of 5% - 6%, the increase of employment, implementation of structural changes in the economy, by different means, including the modernization and privatisation of the public sector.

Modern telecommunications and IT, materials, biotechnology, are being introduced. Polish manufacturing industry is being adapted to global standards.

The ownership transformations implemented in Poland assume the achievement of the model similar to what exists in the European Union countries by the year 2005.

It implies the share of state-owned property of 10-15%.

Poland is a country friendly for investors.

Polish law favours the inflow of foreign direct investment, and their value over the past 13 years was 62 billion USD. We are creating increasingly convenient conditions for foreign investors.

The Law on financial support for investments, adopted last year, foresees, among others, the provision of public aid to investors creating new jobs and implementing modern technologies. The Government, I lead, adapts measures to assure the stability and transparency of legal regulations.

We intend to appoint an 'ombudsman' to look after interests of foreign investors. That person will be responsible for day-to-day contacts with the companies that have difficulties investing in Poland.

Poland's accession to the FU on May 1st 2004 will positively impact the acceleration of our economy and will provide new incentives for investors.

India is our traditional trading and economic partner, and on this experience we will build the plans of Polish-Indian cooperation. Its present level is insufficient and should be rapidly and significantly improved. Our mutual trade is low, only 250 million USD.

We will seek new forms of cooperation and I encourage you to be active in this field. In recent years many Indian companies have made right decisions to invest in Poland. They have set up their partnerships in our country or established branches. Polish companies have participated in many projects in India, including investments such as 12 power plants, 13 mining facilities, a number of chemical & engineering products, metallurgy, food processing, construction plants, a motorcycle factory Rajdoot, a tractor manufacturing factory ESCORT.

We have delivered 16 sea-worthy ships and over 50 main engines for sea vessels.

Polish-Indian cooperation in the defence industry is also developing.

Poland is ready to actively participate in the further development of India's economy and offer its products.

Our offer includes turn-key supply of complete production lines, individual machines and items of equipment, as well as the transfer of technology.

We offer Indian companies our readiness for cooperation in coal and lignite mining, power engineering, railway engineering, machine building, aerospace industry, crude oil and gas extraction, maritime economy, as well as agricultural and food processing industries.

We also invite you to cooperation in the field of capital investments.

We attach great importance to the cooperation with the Confederation of Indian Industry (CII), the Federation of Indian Chambers of Commence and Industry (FICCI) and the North-Indian Chamber of Commerce (PHD). We have welcomed the establishment of the Indo-Polish Chamber of Commerce in Mumbay in 2002.

I wish to encourage Indian companies to visit Poland, to engage in direct contacts with Polish companies.

Let me aware you of the favourable attitude of the Polish government towards the development of cooperation between Poland and India.

I wish to thank you for this meeting, and express my conviction that my visit to your beautiful country, which has rich history and culture, economy in the process of modernisation and developing high technologies, will contribute to further expansion of our economic cooperation.

I wish Polish and Indian businessmen very good and fruitful meetings.

Thank you very much for your attention.