India is the world's testing ground for demonetisation: Belgian Deputy PM - In a Q&A, Alexander De Croo hints his country may prefer India to the US as a strategic partner
Sanjay Jog | Mumbai February 6, 2017 Last Updated at 17:26 IST
Sanjay Jog | Mumbai February 6, 2017 Last Updated at 17:26 IST
http://www.business-standard.com/article/economy-policy/india-is-the-world-s-testing-ground-for-demonetisation-belgian-deputy-pm-117020600715_1.html
Deputy Prime Minister of Belgium, Alexander De Croo
While he emphasises the need for greater access for Belgian companies to the Indian markets in order to boost ties between the two nations, the European nation's deputy prime minister, Alexander De Croo, is nevertheless awed by India's demonetisation drive.
Deputy Prime Minister of Belgium, Alexander De Croo
While he emphasises the need for greater access for Belgian companies to the Indian markets in order to boost ties between the two nations, the European nation's deputy prime minister, Alexander De Croo, is nevertheless awed by India's demonetisation drive.
In an interview with Sanjay Jog, he is also critical of Donald Trump's travel ban, expressing disgust on the part of the US administration to label certain groups as potential terrorists. Edited excerpts:
How can ties between India and Belgium be strengthened, especially in the wake of recent developments worldwide?
These are certainly turbulent and changing times. I was bit surprised to see at Davos who is defending today sustainability and free trade -- it is China. And who is against it -- the US. It has been a reality show for past two weeks. It is a disgrace to just start labelling certain groups as potential terrorists. That is wrong. It is a dangerous evolution if you start saying that the millions of people with legitimate visas cannot get into a country due to the fact there is a hunch that something might be wrong.
Against this backdrop, India's development is quite visible, especially the manner in which extreme poverty has been eradicated due to investment and trade. This is a good thing for the development of the world. We have so far preferred to go with the US, but if we have to continue without them, then this is what is going to happen. We will be looking for like-minded partners who believe in international cooperation and definitely India is a very important partner.
International Monetary Fund chief Christine Lagarde said at Davos that while the (global) economic outlook is good, the political outlook is unstable. That is a very good summary of the state of the world today. The role India plays in the world economy can only increase, and it will rise rapidly if it opens its markets further. And that means trading with Europe. That means real access. But what we are seeing today is that it is very difficult for the typical Belgium SME to access the Indian market.
This apart, protection of intellectual property right in a broad sense is an important factor.
We understand the priority India has given the manufacturing sector, which is a good thing, but in the today's world, even if you decide to do so, you need to import parts. Making import of goods easier is what is needed to boost the manufacturing sector in India. This is not just about finished goods coming in but half-finished goods as well, which you need for manufacturing activity here.
But the Government has taken several initiatives to make doing business in India easier. Do you expect some more?
I hear Belgium entrepreneurs say they find it quite hard to understand the way fiscal authorities in India treat them. It sometimes feels a bit like harassment and that is not a conducive environment. We all agree that businesses need to pay a fair share of taxes and there is no problem with that, but unforeseen hurdles are problematic of course. Besides, import will not hit manufacturing activity in India. On the contrary, if you make import easier, it is going to make manufacturing in India easier. There is feeling that import has been blocked because the policy is manufacturing in India.
However, we need both. Making imports easy will boost both manufacturing and job creation in India.
India and Belgium have lot in common, If we work together on political and security issues and if we trade together, we will unleash the full potential we have as important trading blocks in the world. We stress reforms on the Indian side. At the same time, Europe needs to get its act together.
What are the key sectors to strengthen partnership between India and Belgium?
Belgium is a gateway to Europe and it will benefit India to increase its presence. At the same time, Belgium companies can tap opportunities in bio-technology, pharma, renewable energy and water purification. Besides, the Belgium companies can also associate with the Smart City project.
What is your take on India's demonetisation move?
I would actually love if we could do that in Europe. Digital payments will increase transparency, reduce cost and will make things quite easier for people. Paper money is a thing of past. But we have to do it step by step. How to do it? There has been great learning from India here. We are going in that direction. It is interesting to note that India is the testing ground for Europe and rest of the world in doing this.
How can ties between India and Belgium be strengthened, especially in the wake of recent developments worldwide?
These are certainly turbulent and changing times. I was bit surprised to see at Davos who is defending today sustainability and free trade -- it is China. And who is against it -- the US. It has been a reality show for past two weeks. It is a disgrace to just start labelling certain groups as potential terrorists. That is wrong. It is a dangerous evolution if you start saying that the millions of people with legitimate visas cannot get into a country due to the fact there is a hunch that something might be wrong.
Against this backdrop, India's development is quite visible, especially the manner in which extreme poverty has been eradicated due to investment and trade. This is a good thing for the development of the world. We have so far preferred to go with the US, but if we have to continue without them, then this is what is going to happen. We will be looking for like-minded partners who believe in international cooperation and definitely India is a very important partner.
International Monetary Fund chief Christine Lagarde said at Davos that while the (global) economic outlook is good, the political outlook is unstable. That is a very good summary of the state of the world today. The role India plays in the world economy can only increase, and it will rise rapidly if it opens its markets further. And that means trading with Europe. That means real access. But what we are seeing today is that it is very difficult for the typical Belgium SME to access the Indian market.
This apart, protection of intellectual property right in a broad sense is an important factor.
We understand the priority India has given the manufacturing sector, which is a good thing, but in the today's world, even if you decide to do so, you need to import parts. Making import of goods easier is what is needed to boost the manufacturing sector in India. This is not just about finished goods coming in but half-finished goods as well, which you need for manufacturing activity here.
But the Government has taken several initiatives to make doing business in India easier. Do you expect some more?
I hear Belgium entrepreneurs say they find it quite hard to understand the way fiscal authorities in India treat them. It sometimes feels a bit like harassment and that is not a conducive environment. We all agree that businesses need to pay a fair share of taxes and there is no problem with that, but unforeseen hurdles are problematic of course. Besides, import will not hit manufacturing activity in India. On the contrary, if you make import easier, it is going to make manufacturing in India easier. There is feeling that import has been blocked because the policy is manufacturing in India.
However, we need both. Making imports easy will boost both manufacturing and job creation in India.
India and Belgium have lot in common, If we work together on political and security issues and if we trade together, we will unleash the full potential we have as important trading blocks in the world. We stress reforms on the Indian side. At the same time, Europe needs to get its act together.
What are the key sectors to strengthen partnership between India and Belgium?
Belgium is a gateway to Europe and it will benefit India to increase its presence. At the same time, Belgium companies can tap opportunities in bio-technology, pharma, renewable energy and water purification. Besides, the Belgium companies can also associate with the Smart City project.
What is your take on India's demonetisation move?
I would actually love if we could do that in Europe. Digital payments will increase transparency, reduce cost and will make things quite easier for people. Paper money is a thing of past. But we have to do it step by step. How to do it? There has been great learning from India here. We are going in that direction. It is interesting to note that India is the testing ground for Europe and rest of the world in doing this.
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