India–Romania to strengthen bilateral ties

Romanian President Traian Basescu who was on a three–day visit to India, discussed ways to strengthen bilateral ties between the two nations and enhance their cooperation in political and economic fields.

Describing India as a "very important" global player, President Basescu said, "No one can afford to ignore India... It (India) has to be taken into consideration by any country."

Romania would invest $ 30 billion to develop its rural areas and agriculture, the Romanian President said, adding that the country, which will join the European Union on January 1 next year, would receive € 32 billion from the EU for development activities.

He said Romania's economy has been growing at 6 percent annually in the last six years and this is more than the growth registered by the European economy.

The country's economy has grown by 7.4 percent in the first six months and by the year end, it is estimated to register an 8 percent growth, while the Indian economy has touched 8.9 percent GDP growth in the first quarter of this year, he added.

President Basescu, who arrived on Sunday night, October 22, held talks with Prime Minister Dr. Manmohan Singh the following day in which the entire gamut of bilateral relations was discussed. Issues of cooperation in trade, business and energy were taken up. He left on Tuesday evening, October 24.

During his short stay in India, the Romanian leader also met Indian President A.P.J. Abdul Kalam, UPA chairperson Sonia Gandhi and leader of the opposition L.K. Advani.

President Basescu, in his address to Indian business leaders, urged them to invest in Romania and strengthen bilateral ties.

He informed that India presently has investment to the tune of $ 1.7 billion in Romania and most of them are successful.

"I am here to extend partnership with India which is a global player and has nuclear, army potential and a political force also," he said adding, "The bilateral partnership with India can grow in the energy and army sector." Romania has identified China, India, Japan, and South Korea to extend strategic relations, he said.

Bilateral cooperation has so far covered petroleum, petrochemicals, power and metallurgy projects in India.

Romania has been involved in major Indian projects such as the oil refinery at Guwahati, the thermal power plant at Singreni, the Mangalore Pelletizing Plant, the Durgapur agglomeration plant and the Hyderabad Tractor Plant.

In 1993, an agreement on trade and economic cooperation was concluded, envisaging trade in hard currency.

Bilateral institutional mechanisms to promote trade and economic cooperation include joint commission at the government level and joint business council at the level of businessmen.

The two–way trade, which had remained stagnant for some period, has been witnessing a growth lately and stood at $ 266 million in 2004 and $ 355 million in 2005.

During calendar year 2004, India–Romania trade grew by 103 percent compared to the same period in 2003.

But both sides feel untapped opportunities remain and they are working at exploiting the potential for further growth.

They have identified information technology, pharmaceuticals, energy, metallurgy and heavy Indus tries as sectors for special focus.

India and Romania have also signed four pacts during the visit of President Basescu.

Romania has also backed India's efforts to generate civilian nuclear energy.

The four pacts include one on cooperation in defence and energy, an agreement on economic cooperation, one on promotion of small–scale industries, and the fourth on cultural exchanges and cooperation between foreign institutions.

Romania, which is a member of the 45–nation Nuclear Suppliers' Group (NSG), the powerful international nuclear lobby whose nod is crucial for the implementation of the Indo–US Civilian Nuclear Agreement, also expressed willingness to establish strategic partnership with India in energy and defence sectors.

"We fully understand and support India's openness and the possibility to generate nuclear energy...Romania is a member of the group of countries (NSG) that support the idea of India's generation of nuclear energy," President Basescu said after holding talks with Prime Minister Manmohan Singh on a "wide range" of bilateral, regional and international issues.

In the context of efforts for greater energy security and to develop sustainable and efficient energy sources, both sides agreed to further enhance cooperation in this field, consistent with international obligations.

They agreed to promote greater international cooperation in promoting nuclear energy as a safe, environment–friendly and sustanable source of energy through forward–looking approaches in accordance with the IAEA Statute and other international agreements.

A joint statement issued after the talks said the two sides declared energy, especially oil and gas sector, and defence industry as the main strategtic priorities of bilateral relations.

They also decided to inaugurate a new Joint Working Group (JWG) on Energy Cooperation.