Austria Attracting Indian SMEs

Austria, one of the richest countries of the Europeanhigher than $587.09 million recorded in 2006-07.
Union (EU), has strong trade ties with other EuropeanIndia imports transport equipment, paper, machinery,
nations. In recent times, the Austrian economy hassteel, Chemicals Products and metals from Austria.
been growing at a steady pace, with its grossWhile India's export basket for Austria comprises
domestic product (GDP) growth rate hovering aroundcoffee, leather and leather goods, chemicals, textiles,
1.6% in 2008.jewellery and precious stones.
Austria is geographically close to several developedIndustry Experts believe that there is ample scope
economies in Europe, such as Germany, Italy andfor mutual cooperation between Indian and Austrian
Switzerland. It is also a preferred trade destinationSMEs in areas like food processing, biotechnology,
owing to its optimal access to the European market.tourism, steel and pharmaceuticals. Indian SMEs can
The present Austrian government has outlined aalso forge strategic tie-ups with their Austrian
comprehensive economic reform programme tocounterparts to gain technical expertise in fields like
create a business-friendly environment in the country.electronics, nanotechnology and telecommunications.
It has also initiated efforts to strengthen Austria'sTo promote bilateral trade between India and
position as a lucrative investment destination.Austria, governments of both countries have set up
Motivated by the steps taken by the Austriana Joint Economic Commission (JEC), which is actively
government to increase foreign direct investmentinvolved in enhancing trade volumes between the
(FDI) in the country, a growing number of Indiantwo countries. There is also the Austria-India Interest
SMEs are entering the Austrian market to gainGroup (AIBIG) in Vienna that promotes trade ties
maximum profits.between Indian and Austrian SMEs.
Indo-Austrian trade relationsIn 2007, an agreement on science and technology
Austria's proximity to the thriving EU countries makes(S&T) cooperation was signed between India
it a strategic link for Indian SMEs eyeing expansion inand Austria to take the bilateral relations to the next
Europe. As a result, bilateral trade between India andlevel. These efforts are expected to play a major
Austria has grown at a healthy rate in the past fewrole in strengthening Indo-Austrian trade relations in
years. Notably, total trade between India and Austriathe near future.
was pegged at $769.02 million in 2007-08, significantly