The promise of the Indian market is still waiting for the unknown Spain

New Delhi, December 5, 2008. - The mutual ignorance, lack of brand image and the absence of direct air connection are some of the challenges that Spain must overcome to penetrate deep into the Indian market, where it occupies a modest position 42 between exporters.
"We need a much larger relationship, something that is in process. We already see signs that will grow and you have to give a big boost, "he told Efe the president of the Federation of Chambers of Commerce and Industry (FICCI), Amit Mitra.
With that goal will take place in India's capital next week on "India-Spain Forum of investments and trade cooperation", organized by the FICCI and the Spanish Commercial Office, which will be attended by the Minister of Industry, Miguel Sebastián.
The event, the fourth of its kind organized in India, will go 46 Spanish companies will have the opportunity to explore "new opportunities for investment and business collaboration," the statement said.
The challenge is to strengthen the image and the presence of Spanish companies in a market where exports account for only 0.39 percent of the total in India, with a value of 742 million euros in 2007.
"We need to enhance our brand image Spain, still largely unknown in India. We must also intensify business contacts, which companies are encouraged to have a constant presence in India, "the minister explained to Efe trade of Spain in New Delhi, Teresa Solbes.
Spain aims to achieve a bilateral trade with India worth 7,000 million euros in 2012 from 2.929 million in 2007, according to the annual report of the Spanish Commercial Office in New Delhi.
Trade relations between the two countries grew by 337 percent in the last decade-a 22.74 in the last year-but the Office continues to consider the total amount as "small".
"The value is still low, but we must look at the trend, which is very positive. Spain has traditionally been focused in Latin America and has now begun to look to Asia. Our companies must compete in a globalized world, "Solbes said.
Spain draws an unfavorable trade balance with India, with imports last year to 2,187 million euros, mainly in textiles, leather, footwear, chemicals, fish and steel.
And in chapter exporter, Spain has based its trade with India in industrial goods and machinery, which account for 88.4 percent of the total, due in part to technical difficulties and high tariffs in other sectors suffer.
"Our trade deficit is a structural problem. I think one solution is to develop services. Our technology is sophisticated and goes well with Indian needs, so what we sell conforms to the country, "Solbes maintained.
The evolution of trade relations will be marked by the appointment of the Asian country as "priority" to open a trade office in Bombay and the signing of a Trade Agreement between India and the European Union.
But to achieve the objectives, Spanish companies should show more interest in India: "They should be encouraged to come to a much greater," claimed Mitra, who mentioned the lack of direct air link as a "constraint".
The Commercial Office in New Delhi is aware of 114 Spanish companies operating in India, compared to 34 of 2004, an increase of over 300 percent in less than five years, but that some very low levels.
"This is a complex market that has its own characteristics, so it requires perseverance, Solbes said. It is not as intuitive a market, such as German. The Indian market has conditions that call for adaptation. "
At least in the first eight months of 2008 the trend has been positive, with exports to India grew by 11.88 percent over the same period in 2007, with a value of 535.7 million euros.
Remains to be seen what impact on expectations the economic crisis, which also felt its effects on India.