Joint Meeting of 16th Session of Indo-Romanian Joint Commission and 9th Session of Joint Business Council
October 20, 2003, New Delhi

Special Address by Mr Dan Ioan Popescu, Minister of Economy and Commerce, Govt of Romania

Your Excellency, Arun Jaitley, Minister of Industry and Commerce, Chairman of the Indian side,

Your Excellency, Petru Petra, the Ambassador of Romania in India,

Distinguished members of the Indian and Romania delegations,

Ladies and Gentlemen,

I would like to take this special opportunity to address my best wishes to all the participants - officials and businessmen as well, and to express my feelings for prosperity to all of you. It is a great pleasure for me to be today with you in this Joint Business Council that offers us the possibility of having an useful exchange of opinions on matters of common interest concerning the business and investment opportunities offered by the Romanian and Indian industries.

Romania's economic performances in the last three years, even in an economic framework less favourable, confirm that we are on the good track, both regarding the economic 5% growth, the most dynamic evolution in all countries from Central and Eastern Europe and also reduction of the unemployment and inflation rate. At the same time, the increase by 6% of the industrial output made possible the positive trend of the Romanian exports, the industrial products having an overwhelming share, of more than 95% in the total export volume. Foreign trade remain the most dynamic sector of our economy with high rate of growth of around 30%.

We, like to pay attention and act with responsibility to improve the business climate, to assure a fair and healthy competition, transparency and reduce bureaucracy.

We decided appropriate economic and legal measures knowing that businessmen want to work in a clear and predictable business environment.

One of the main tasks of the Ministry of Economy and Commerce, is the creation of proper condition for a sustainable economic growth. In this respect Romanian Energy Sector, which represents the engine of the whole economy, is our priority.

Privatization in Romania represents one of the most important economic element to sustain a continuous and stable growth of whole economy. The biggest companies to be privatised, in the energy sectors belong to our ministry.

Privatization of our national oil company - SNP PETROM, the biggest Romanian company and in also in Central Europe is under way - major foreign oil companies from Europe and America have shown a great interest in our company.

Ministry of Economy and Commerce of Romania has a large portfolio of investment projects regarding the modernization of production capacities, in all energy and industrial sectors.

These major objectives in the field of investments put us in the position of strengthening the cooperation with the strategic investors. Foreign investors, including Indian investors are kindly invited to set up joint ventures and to be more present in the privatization process in Romania.

Ladies and gentlemen,

Relations between Romania and India have traditionally been marked by cordiality and cooperation.

India represents one of the most important economic partners for Romania in Asia, a solid market for Romanian goods and an important supplier of many products needed by our economy.

We are an European country, but we desire to develop our traditional economic relationship with important countries from Asia, especially India which is on a leading place as destination of our exports and the forth place in total, among the countries in Asia - Pacific region.

We invite the Indian businessmen to take advantage of the above mentioned favourable conditions, as well as our deep association and preferential arrangements with the European Union and Central European countries. Romania can be the entry gate to these markets for the Indian companies.

It is also the right time to focus on wider more regionally based projects, not only of local interest.

The volume of the bilateral trade exchanges in 2002 reached the total of 102 million dollars, out of which Romanian exports to India were 49 million dollars and Romanian imports from India were 53 million dollars, the same volume like in 2001. On the first 7 month this year, the total volume reached 75 mil. USD.

While considering the trend of the bilateral exchanges, we can not declare ourselves satisfied with the trade figures, which are far from representing the real possibilities offered by our economies.

This is why we are here in order to find together the ways and means to increase the exchange of goods and economic cooperation, so that total volume to increase gradually. Furthermore, Romania and India which are traditional partners in the field of economic cooperation, have achieved in the past important economic projects such as: Gauhati oil refinery, Singareni thermal power plant, Lube oil at Haldia refinery, Mangalore palletizing plant, Durgapur agglomeration plant, Hyderabad tractor assembling plant.

These examples are hard proofs of our commitment to resume and to do more in the field of industrial cooperation.

As far as Indian investments in Romania are concerned, I have to mention that more than 150 companies have been registered in different areas like: trade, industry, constructions, transportation, etc. The main Indian investment in Romania is SIDEX S.A. Galati. As you know, LNM Holding Group has purchased SIDEX Galati in 2001 - the largest integrated iron and steel producer of Romania. Its output accounts for more than 50% of Romania's steel production, over 90% of the domestic flat products requirements and production is exported to over 40 countries worldwide.

Ladies and Gentlemen,

We are convinced that this meeting will enhances trade and bilateral cooperation and the success of cooperation depends not only on the institutional desire for cooperation, but on the involvement of companies, business associations from both countries.

Have to underline Romania's interest to intensify the negotiations with the Indian side, to focus our efforts on 3-4 industrial sectors which prove the potential and mutual interest and to establish concrete proposals which could represent a long term action plan.

We consider that oil and gas could represent an important field of cooperation taking into account the important projects to be implemented in India, the good bilateral cooperation history and the fact that oil industry represent one of our major industries.

We have already a good example of cooperation in the field of oil equipment between our company UPET Targoviste and Oil and Natural Gas Comp. for 25 mobile installations of "work over rigs".

There are possibilities for other equipments to be delivered as per our good traditional cooperation on oil equipments.

For a further evolution of our relation we propose to conclude a "Memorandum of Cooperation", the draft being presented by the Romanian side in April 2003.

Other fields of cooperation, we could mention:

Heavy engineering - iron ore/ pallet plant, spare parts and other metallurgical products including tubing's drilling equipment;

Information Technology - strengthening and enhancing contacts between Romanian Association of Electronic Industry and Software and National Institute of Information Technology and Electronics, Software Export Promotion Council.

Pharmaceuticals cooperation of establishing in Romania of production units of pharmaceuticals raw materials and primary products, including specialized equipments.

Research and development - to promote and support the development of scientific and technological cooperation, training specialists between their respective research centres, departments and universities.

We consider also to develop cooperation activities in order to produce in Romania different kinds of goods that could be sold on the Eastern Europe and EU markets using the advantages that Romania is a partner country - no custom duties -but complying with the settlements of EU regarding the way of granting the certificate of origin of the products.

We invite the Indian businessmen interested in EU market to examine with us this opportunity for the developing of our bilateral co-operation.

Ladies and Gentlemen,

We want to do more business with the Indian companies, more economic cooperation.

It is here the place to point out the particular importance of the Romanian Indian Joint Business Council where Romanian and Indian business communities working together could bring more in deep cooperation as well as more diversified trade exchanges. I would like to invite you, the businessmen, to find the most direct ways of communication, to multiply the contacts, to participate in the promotional activities, such as: economic missions and international exhibitions - and to identify the cooperation projects for which you may have our support.

Being aware of the economic potential of India and of the dynamism of the Indian businessmen, and reiterating our intention to be more active in the relations with the Indian market, I am confident that this Romanian - Indian Joint Business Council will be successful.

With these remarks, allow me, to convey to all the Indian and Romanian participants the assurance of full support by the Romanian Ministry of Economy and Commerce.

Thank you for your kind attention.