GALGOTIAS BUSINESS SCHOOL

ASSSINGMENT OF IBE
SUBMITTED BY ASHUTOSH SINGH 11PGDM 22

SUBMITTED TO Dr. SANJEEV JAIN

IndiaPortugal relations
Relations between India and Portugal began amicably in 1947 when the former achieved independence. Relations went into decline after 1950 over Portugal's refusal to surrender its enclaves of Goa, Daman and Diu on India's west coast. By 1955, the two nations had cut off diplomatic relations, triggering a crisis which precipitated in the invasion of Portuguese India in 1961. Portugal refused to recognize Indian sovereignty over the annexed territories until 1974 when, following the Carnation Revolution, the new government in Lisbon recognized Indian sovereignty and restored diplomatic relations.

Overview:
Relations with Portugal today remain close, friendly and devoid of irritants. Diplomatic relations between India and Portugal were established in 1949 but following problems on negotiations over Goa, all diplomatic and consular links were severed in September 1, 1955. Goa was liberated in 1961. Through the sixties and up to 1974, in Portugal, there continued an increasingly strong movement for democracy at home and decolonization abroad. With India this culminated in signing a Treaty re-establishing diplomatic relations in New Delhi on December 31, 1974, following which Embassies of the two countries were re-opened. The two countries share an excellent political relationship today having overcome the irritants of 1961. Portugal has consistently supported India at multilateral fora, including for a permanent seat at the UNSC. It also supported India for a nonpermanent seat for 2011-12 and is presently a member of the UNSC co-terminus with our 2011-12 term. Cooperation between India and Portugal is also witnessed in the fact that Portugal agreed to the extradition of Abu Salem. Portugal is the first European Union nation to agree to extradition. Political Relations: Political relationships have been buttressed and reinforced by exchanges at the highest level. President Cavaco Silva visited India in January 2007. Prime Minister Jose Socrates visited in December 2007 for the 8th India-EU Summit in New Delhi during the Portuguese Presidency of EU. Dr Mario Soares visited India twice, as Prime Minister to attend the funeral of former Prime Minister Indira Gandhi in 1984 and as President and Chief Guest for Republic Day in 1992. From the Indian side, PM Atal Bihari visited Portugal for the first India-Portugal Summit in Lisbon in June 2000, President KR Narayanan visited in 1998 and President Venkataraman in 1990. (Please see annexure for other high level visits). India is one of the few countries for which Portugal has formed a Parliamentary Friendship Group; reciprocally India also formed a similar group with membership across political parties. Parliamentary exchanges have also been maintained with 2 Portugal, with the first ever visit of 9-Parliamentarians from Portugal led by Dr. Antonio

de Almeida Santos, Speaker of the Parliament in 1999 followed by another visit of 4member delegation, led by Speaker Dr. Joao Bosco Mota Amaral in 2003. From India, a 12-member Parliamentary Delegation led by Shri Manohar Joshi, Honble Speaker, Lok Sabha visited Portugal from May 25 28, 2003 and a 16-member Parliamentary Goodwill Delegation led by Minister for Parliamentary Affairs & Information and Broadcasting Shri Priya Ranjan Dasmunshi visited Portugal in November 6-7, 2007. Bilateral Trade and Economic relations: 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; Cooperation Agreement between Confederation of Indian Industry (CII) and the Portuguese Association of Industries (AIP) in 1995 and an Agreement for Avoidance of Double Taxation in September 1998. 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. Additionally, with a new and younger generation of business leaders there are greater efforts at engagement in the economic and commercial spheres including in new areas such as infrastructure, IT, renewable energy, pharmaceuticals. While trade has been largely one sided and in India's favour (over 90% of the trade turnover), the global economic and financial crisis which caused a drop in exports and imports has since revived and overtaken pre-crisis levels of 20082009. Science and Technology: The present Programme of Cooperation for 2010-2012 under the Agreement for Cooperation in Science and Technology signed on December 3, 1998, between India and Portugal, and remains an active partnership with widened areas of scientific research, with 60 joint projects presently under its ambit. Culture: The substantial Indian community contributes to cultural ties with Portugal remaining strong and continuous. A Cultural Cooperation Agreement was signed in 1980 under which several Cultural Exchange Programmes (CEPs) have been implemented. However here again there is potential for increased cultural cooperation. Indian Community: There is a sizable Indian community in Portugal, concentrated mainly in Lisbon but with a few groups also in Porto and Algarve. Portugal is the major destination for Goan immigrants who get easily assimilated in the Portuguese culture. Prominent figures include Antonio Costa, former Minister and the current Mayor of Lisbon. Following the civil war in Mozambique, sizeable Indian Gujarati community migrated from there and settled in Portugal. They are all Portuguese speaking and mainly involved in hospitality and construction sector

Portugal for better trade relations with India

Portugal is looking to boost its trade relations with India and is particularly keen on improving trade ties with its former colony Goa. "Portugal is trying to work on the trade ties with India and especially Goa to make up for the existing trade deficit," Portugal Ambassador Jorge Roza de Oliveira told PTI. He clarified that when he talks of trade deficit, he is pointing towards Portugal and not India. The trade between India and Portugal is expected to be around 500 million Euros, bulk of which is accounted for by exports from India. "We have excellent relationship with India, we have history and culture. But there is not much trade and investment happening," he added. He believes Portugal's expertise in the fields of infrastructure, water and waste management and alternate energy can be shared with India. "The trade should be above the normal things like I sell and you buy. We can come with the projects due to which social conditions are benefited. These are areas which tend to benefit everyone," he commented. Oliveira has already started discussion with the forums like Confederation of Indian Industries (CII) on this front. Portugal has good trade ties with its former colonies such as Brazil and Angola and is now looking at better ties with Goa in the form of trade and commerce. Portugal has trade presence in places such as Delhi, Haryana, UP, Gujarat, Hyderabad, Karnataka and Kerala in sectors like cement, electric transformers, equipment for petrol stations, health, textile and shoe components while in Goa, it intends to trade in wine and olive oil. "The Five Star hotels in Goa have wine from all over the world but not from Portugal, although tourism in the state benefits from symbol of Portugal and its history," he added. Goa was ruled by Portuguese for almost 450 years, till it was liberated by Indian Army in 1961.

FACTS AND FIGURE

YEAR 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 INDIA INDIA INDIA INDIA INDIA INDIA INDIA INDIA INDIA INDIA INDIA EXPORT 4.93E+10 5.9E+10 7.66E+10 9.96E+10 1.22E+11 1.5E+11 1.95E+11 1.65E+11 2.26E+11 3.05E+11 IMPORT 5.65E+10 7.26E+10 9.98E+10 1.43E+11 1.78E+11 2.29E+11 3.21E+11 2.57E+11 3.5E+11 4.63E+11 PORTUGAL PORTUGAL PORTUGAL PORTUGAL PORTUGAL PORTUGAL PORTUGAL PORTUGAL PORTUGAL PORTUGAL PORTUGAL EXPORT 2.59E+10 3.18E+10 3.58E+10 3.81E+10 4.33E+10 5.25E+10 5.71E+10 4.42E+10 4.87E+10 5.9E+10 IMPORT 4.02E+10 4.72E+10 5.49E+10 6.12E+10 6.67E+10 8.21E+10 9.44E+10 7.17E+10 7.56E+10 8.03E+10