Indian SMEs Breaking Barriers in Bulgaria

Bulgaria, an erstwhile communist nation, is a freeProducts are exempted from import duty in the
market economy characterised by industrialisation andmember countries. Indian SMEs can therefore take
macroeconomic stability. This European countryadvantage of Bulgaria’s EU status by setting up
became a member of the European Union (EU) inindustrial units in Bulgaria and marketing their products
2007. Subsequently, the Bulgarian governmentin other member countries.
introduced several economic reform programmesIn addition, there are various areas of mutual
targeted at achieving a robust gross domesticcooperation and growth that can be explored by
product (GDP) growth. Today, Bulgaria is attractingIndian SMEs for long-term growth. These include
an increasing number of Indian SMEs owing to itsindustries like leather, petrochemicals, energy, food
business-friendly environment and strategic proximity.processing, travel and tourism and chemicals.
Indo-Bulgarian trade relationsIndian SMEs can also tap the opportunities in
India is one of the most important trade partners ofBulgaria’s evolving knowledge-driven industries
Bulgaria in Asia. After the collapse of its communistsuch as information and technology (IT), information
regime, Bulgaria has shown a keen interest toand communications technology (ICT) and
strengthen its trade and investment ties with India.biotechnology.
Currently, India exports tea, coffee, sugar, textile,Trade forums
plastics, paper and tobacco to Bulgaria. While,The governments of both countries agree that to
Bulgaria’s export basket for India comprisesfacilitate Indo-Bulgarian bilateral trade it is imperative
commodities like inorganic chemicals, copper,to enhance cooperation between the SMEs in the
aluminium, pulses and metal scraps. The bilateral tradetwo countries. In order to encourage increased
between India and Bulgaria has grown manifold ineconomic exchanges between the SMEs in the two
recent years. Notably, in 2007-08 Indo-Bulgariancountries, the Indo-Bulgarian Joint Commission on
bilateral trade was pegged at around $190.99 million.Economic, Scientific and Technical Cooperation (JCM)
Besides, the Bulgarian industry is in a transitory phase,was established in 1973.
undergoing a major shift in ownership from theAdditionally, the Indo-Bulgarian Joint Council was
government sector to the private sector. Thisformed in 1976 to help Indian SMEs establish trade
transition has further expanded the scope of India tolinkages in Bulgaria. To cater to the burgeoning IT
participate in the burgeoning economy of Bulgaria.sector in Bulgaria, an IT forum was formed in 2004
Indian SMEs are too keen to cash in on the demandduring the 15th JCM.
for products such as electronics, medical equipment,Given the tremendous growth potential of the
engineering goods, automobiles and auto parts inBulgarian market, Indian SMEs can hope for promising
Bulgaria.business prospects in this south-east European nation
Opportunities in Bulgariain the near future.
Being an associate member of the EU, Bulgarian