Strengthening Ties between India and Spain: A Fresh Stitch in Partnership and Collective Advancement
India and Spain are deepening their relationship, with over $900 million invested by Indian companies in the European nation, primarily in the IT services, pharmaceuticals, and logistics sectors. This partnership, according to experts, holds immense potential for collaboration in sustainable development, technology, infrastructure, and defence.
The economic bond between the two countries is robust, with a flourishing trade relationship. Spain is India's 16th largest Foreign Direct Investor, with a total investment of $4 billion since 2000 and over 280 Spanish companies actively operating in India. In the financial year 2023-24, their bilateral trade reached a value of $7.2 billion.
India's largest exports to Spain include iron and steel, organic chemicals, articles of apparel, electrical machinery, and mineral fuels. On the other hand, India's largest imports from Spain are beverages, spirits, and vinegar, nuclear reactors and parts, mineral fuels, organic chemicals, and plastics articles. Over the past five years, India's exports to Spain have grown at a Compound Annual Growth Rate (CAGR) of 4.99%, reaching $4.8 billion in FY24. Spain's imports from India, currently valued at $2.4 billion, account for a 0.36% share of India's total imports.
The partnership between India and Spain is not limited to trade and investment. They are also exploring new areas of cooperation in information technology, telecommunications, and energy. In 2024, the Final Assembly Line (FAL) for the C295 aircraft was inaugurated in India, marking a significant milestone for India's "Make in India" initiative. The two countries have also signed an MoU for cooperation in infrastructure development.
Spain, with its expertise in infrastructure, particularly in high-speed rail, metro systems, and highways, can play a crucial role in India's ongoing infrastructure development. Meanwhile, India, with its prowess in information technology, telecommunications, and renewable energy, can help Spain in its digital transformation and renewable energy goals.
The alliance between India and Spain promises to bring immense benefits not only to their citizens but also to the broader global community. They are committed to collaboration in renewable energy, energy storage solutions, smart grids, and green hydrogen. Spain's Iberdrola, for instance, is already active in India's renewable energy sector, particularly in solar energy projects.
Moreover, the partnership between India and Spain can contribute to a more prosperous, secure, and sustainable world. They are also strengthening their defence ties, including a partnership for the construction of new-generation ships for the Indian Navy. By leveraging each other's advantages, India and Spain can open up new doors to growth and prosperity, playing a catalytic role in building a resilient, more prosperous, secure, and sustainable world. This partnership between India and Spain is poised to take their economic relationship to new heights.
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