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The Prime Minister of Spain's visit to India expects to boost India-Spain relations.
It is the first visit of a Spanish Prime Minister in India after 18 years.
The Prime Minister of India and Spain jointly inaugurated the final assembly line plant for C295 tactical transport aircraft in Vadodara, Gujarat. It is India's first private military transport aircraft production facility which is developed by Tata Advanced System Limited in partnership with Airbus Defence and Space.
The diplomatic relation between India and Spain was established in 1956 with the opening of the Spain Embassy in India.
About SpainSpain is located in southwestern Europe, and occupying more than 80% of the Iberian Peninsula. It is the 4th largest country in the European continent (after Russia, Ukraine, and France). It is bordered by the Mediterranean Sea in the south and east. In the North, it is bordered by France and the Bay of Biscay. It is bordered by the Atlantic Ocean and Portugal in the West. The Pyrenees mountain range from the Mediterranean sea to the Bay of Biscay acts as the natural border between Spain and France. The Straits of Gibraltar in the South separate the Iberian peninsula and the rest of Europe from Morocco in North Africa. |
Spain is the 6th largest trade partner of India in the European Union (EU).
In the 2023 financial year, the total trade between India and Spain was around $8.25 billion. India's export to Spain was near $6.33 billion, while India's import from Spain was approximately $1.92 billion.
Between April 2000-December 2023, FDI from Spain in India accounted for around $3.94 billion, which makes it the 16th largest investor in India.
Many Spanish companies operate in India in the field of metallurgical industries, renewable energy, automobile and infrastructure.
More than 80 Indian companies operate in Spain and India FDI to Spain is around $900 million. India is among Spain’s top 30 investors globally.
India-Spain Joint Commission on Economic Cooperation was established in 1972 to promote trade and investment between both countries and to strengthen their relationship.
Spain is an important partner in India's Defense Modernization program. It provides expertise in aerospace and naval technology. Spanish companies are involved in different projects including submarine technology and military aircraft.
India and Spain actively cooperate in counter terrorism operations and intelligence sharing, and both share common concern regarding global terrorism.
Both nations work closely to fulfill the obligations under the Paris climate agreement and cooperate closely to achieve targets mentioned under Sustainable Development Goals. Spain's expertise in renewable energy offers India to strengthen its progress in increasing clean energy sources.
They collaborate closely on various multilateral forums like United Nations, G20, International Soil Alliance to promote global peace, sustainable development and humanitarian aid, and also addressing global economic challenges, trade reforms and climate action.
Large market of India and expanding consumer base makes India an attractive market for Spanish companies.
Strengthening relations with India allow Spain to play an active role in the Indian-Ocean region and Indo-Pacific region.
India is becoming a global leader in technology and digital innovation, which is valuable for Spain as it looks to strengthen its digital infrastructure and promote the digital economy.
Spain is an important member of the European Union and with India's growing engagement with the EU market, Spain naturally becomes a valuable partner for India in its EU-India policy.
It supports India for the membership of the permanent seat at the UN Security Council.
Spanish companies are leaders in technological sectors like high speed rail, urban infrastructure and water management. India can benefit from their technological advancement.
Spain is emerging as an important defense partner for India, which could help India in achieving its goal of Atmanirbhar Bharat, by establishing defense manufacturing in India.
India-Spain Trade relations are growing, but still it is not up to the potential as there are several barriers (like lack of trade diversity, different consumer tastes) which obstruct the smooth trading relation between both countries.
Language barrier and limited cultural exchange is a major challenge for Strengthening deeper people to people relations.
As a Member of the European Union, Spain is bound by EU policies and regulations, which complicates India's engagement with Spain on trade and investment matters.
India and Spain need to work to diversify their trade and investment relations and explore new areas of cooperation such as green energy and digital services.
There is a need to expand cultural exchange and tourism programs that can promote a better understanding between the people of both nations.
Spain is a major player in renewable energy, India could benefit from the expertise of Spain in promoting renewable energy in India to reduce its oil import dependency on other nations.
Collaboration on emerging technologies like artificial intelligence, cyber security, climate mitigation will benefit both nations in achieving Sustainable development goals.
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PRACTICE QUESTIONQ.Critically analyze the potential of India-Spain relation in promoting India's renewable energy sector. (150 words) |
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