Speech by Hon'ble President at the Joint Business Meeting Between the Chile-india Chamber of Commerce & Indian Business Delegation

Mr. Juan Enrique Riveros,

President of the Chile-India Chamber of Commerce,

Mr. Madhur Bajaj, and other members of the Indian business delegation,

Ladies and Gentlemen.

I am delighted to be here today at this Joint Business meeting. I greatly appreciate the effort of the Chile-India Chamber of Commerce to make this interaction possible. May I also thank the Indian business delegation which is present here today and has accompanied me on the earlier legs of my current visit?

2. Chile and India are both rapidly developing economies. Both countries face the challenge of making growth more inclusive. This is particularly important in democracies such as ours.

The development of bilateral trade and investment will contribute to our common objectives. I am pleased that our trade relationship has shown particular dynamism in recent months. This must be sustained. It is also my hope that investment partnerships that are under discussion will fructify into concrete projects in coming months.

3. Our two governments are in the process of creating a more conducive environment for our business communities. In this context, the finalization of the agreements on bilateral investment protection and promotion and avoidance of double taxation is particularly important.

These would help us build upon the Preferential Trade Agreement that is already in force between our two countries.

4. The Indian economy has been performing particularly well over the last decade and a half. We are a growing market whose strength lies in that our growth is largely domestically driven. Our savings rate is around 35% and our investment rate 36%. The knowledge sectors are developing well.

Our focus is now on faster development of infrastructure, rural development, increase in agricultural productivity, further development of the education and health sectors and small and medium enterprises.

In effect, the opportunities for mutually beneficial cooperation between India and Chile are manifold. The challenge before the business communities of both countries, public and private, is to exploit these opportunities to mutual benefit. I am confident that you will measure up to this challenge.

5. It is also important for us to together bridge the information gap that still persists regarding each other's capabilities in industry, science and technology, agriculture, food processing and the service sector. Indian industry has in recent years revitalized itself.

Our capabilities in the knowledge sector are growing. Our service sector already accounts for more than 50% of GDP. There have also been important developments in different sectors in Chile.

A better awareness of each other's capabilities will enable us to discover cost-effective alternative supply sources to meet our requirements.

6. Connectivity is improving but not rapidly enough. We have today signed the bilateral Air Services Agreement, which I hope, will be implemented in an innovative manner at an early date.

Greater connectivity is important not only from the business perspective but also to encourage more tourism, exchanges of scholars, youth and cultural exchanges. We have to ensure that we take practical steps to reduce the distance between us. Maritime links must also be further developed and I am happy that the Chilean company CSAV is taking initiatives in this regard.

7. India and Chile are friends of long standing. We must strengthen the trade and economic foundation of this relationship. We have begun well in recent years and it is necessary to sustain and fortify this process. In this, you the business communities of the two countries have to be more proactive. The two governments are committed to provide the necessary institutional and legal framework for this.

8. Friends, I have had very productive discussions with President Bachelet earlier today. We have agreed that India and Chile will strengthen their partnership in diverse sectors and encourage more cultural and people-to-people exchanges. Our effort is to convert our traditional friendship into a meaningful partnership that is of direct benefit to our two countries. Ours is a partnership of two democracies in which our business communities must enhance their interaction and help bridge the geographical distance that separates us.

I wish you good luck and success.

Thank You.

Muchas Gracias !