Strengthening Ties Between India and Spain: Forging Partnerships and Encouraging Progress
India and Spain have taken a significant step forward in their bilateral relationship, signing a Memorandum of Understanding (MoU) for cooperation in infrastructure development. This partnership, aiming to cover planning, design, development, commissioning, and operation of infrastructure, stations, railways facilities and equipment, holds significant potential for collaboration in sustainable development, technology, and defence.
Currently, India's imports from Spain are valued at US$ 2.4 billion, accounting for a 0.36% share of India's total imports. The largest imports from Spain include beverages, spirits, and vinegar, nuclear reactors and parts, mineral fuels, organic chemicals, and plastics articles. On the other hand, Spanish companies have invested over US$ 900 million in India, primarily in the IT services, pharmaceuticals, and logistics sectors.
India's exports to Spain have been growing steadily, with a Compound Annual Growth Rate (CAGR) of 4.99% over the past five years. In FY24, India's exports to Spain reached US$ 4.8 billion. The largest export to Spain includes iron and steel, organic chemicals, articles of apparel, electrical machinery, and mineral fuels.
India and Spain have a robust partnership covering trade, investment, culture, and technology. Over 280 Spanish companies are active in India across the renewable energy, automotive, and ceramics industries. Notable Spanish companies investing in these sectors include Abengoa and Acciona in renewables, SEAT and Renault in automotive, and Porcelanosa in ceramics.
SEAT, part of the Volkswagen Group, is active in India through manufacturing and sales, while Renault produces the Kwid model locally since 2015. Acciona has engaged in renewable energy projects such as solar and wind energy installations across various Indian states. Porcelanosa's activities in India involve sales and distribution networks for ceramic products rather than manufacturing facilities.
In the automotive sector, Spain's investment is not limited to SEAT and Renault. In recent years, Spanish companies like Abengoa and Acciona have also made strides in the renewable energy sector, contributing to India's clean energy transition. Meanwhile, Porcelanosa's presence in India's ceramics industry has helped strengthen the country's infrastructure and construction sector.
Beyond trade and investment, India and Spain are also exploring new areas of cooperation in information technology, telecommunications, and energy. A notable development in this regard is the inauguration of the Final Assembly Line (FAL) for the C295 aircraft in India, marking a significant step for India's "Make in India" initiative.
Moreover, India and Spain are strengthening their defence ties, with a 2020 agreement for collaboration on the construction of new-generation ships for the Indian Navy. This resilient partnership between India and Spain promises to bring immense benefits to the global community, contributing to a more prosperous, secure, and sustainable world.
By utilizing each other's advantages and pooling their resources and expertise, India and Spain can open up new doors to growth and prosperity. Embracing emerging opportunities, India and Spain can continue to build a resilient partnership that benefits their citizens and the broader global community.
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