Commercial

  BILATERAL TRADE RELATIONS INDIA AND BULGARIA

The first Trade and Rupee payment agreement between India and Bulgaria was signed in 1956. The two-way trade was switched from Rupee Trade to Freely Convertible Currency trade in January 1979.

The following table shows Bulgaria’s trade with India during the last few years:

(In US $ million)	2000	2001	2002	2003	2004	2005	2006	2007 Jan. - July
India’s Exports to Bulgaria	11,92	19,06	16,16	23.2	33.84	35.63	47.35	33.38
India's Imports from Bulgaria	11,17 (+0.75)	11.00 (+8.06)	6.61 (+9.5)	8.4 (+14.8)	21.90 (+11.84)	17.38 (18.25)	27.93 (+19.42)	9.36 (+24.02)
Total Bilateral Trade	23.09	30.06	22.77	31.6	55.74	52.68	75.28	42.74

(Source : National Statistical Institute)

Main items of exports from India to Bulgaria include vegetables and fruits; coffee, tea, cocoa and spices; sugar, sugar preparations and honey; feeding stuff for animals; textile yarn, fabrics, made-up articles; pharmaceuticals etc. whereas main items of Indian imports from Bulgaria include inorganic chemicals and related products, machines and transport equipment, manufactured goods, derivatives of hydrocarbon, iron scrap, copper and aluminum waste etc.

There has been interest evinced by Indian businessmen in sectors like wine, pharmaceuticals, textiles, food-processing, steel, IT and education franchise etc. FICCI has shown interest in joint ventures/ sharing of expertise with Bulgarian companies in wine, food-processing and honey. The Bulgarian businessmen are also interested in enhancing economic and commercial relations with India.

On August 15, 2005 India’s Global Steel Holdings Ltd.(GSHL) acquired Finmetals Holding, owner of 71 % of Sofia-based Bulgarian largest steel factory, Kremikovtsi. This is the single largest Indian investment in Bulgaria. The Pramod Mittal group also acquired the biggest and most famous football club of Bulgaria ‘CSKA’ in 2006.

Tourism is an area which hold prospects for both the two countries. Bulgaria, with its beautiful mountains, the Black-Sea coast boasting of cities like Varna and Nessebur, has become an attractive destination for Bollywood film Industry too. In 2005, a large contingent of Indian film stars and supporting crew camped in Bulgaria for shooting of the recently released film ‘Kaafila’. In July 2006, Member of Parliament and film actor Shri Vinod Khanna visited Bulgaria for shooting of his film ‘Godfather’ followed by a visit by film actor Arbaz Khan for the same.

  Bilateral Institutional Arrangements Between India And Bulgaria

In order to enhance trade and economic cooperation between both the countries, bilateral institutional arrangements like Joint Commission on Economic, Scientific and Technical Cooperation at Governmental level, Joint Business Council at non-governmental level and Working Groups on four different sectors have been set up and have been meeting regularly.

   Joint Commission on Economic, Scientific and Technical Cooperation(JCM)

The Indo-Bulgarian Joint Commission on Economic, Scientific and Technical Cooperation was set up at Government level in 1973. The Ministry of Agriculture was the nodal Ministry coordinating the activities of JCM till the 15th Session. The mandate has now been shifted to the Ministry of Commerce and Industry. There are four Working Groups under the aegis of JCM i.e 1) Working Group on Agriculture and related sectors; 2) Working Group on Commerce and Industry; 3) Working Group on Electronics and Information Technology; 4) Working Group on Science and Technology. Fifteen meetings have already taken place and the 15th meeting was held in India in November, 2004. Bulgarian delegation was headed by Agriculture and Forestry Minister Mehmed Dikme. Bulgarian delegation also included Deputy Economy Minister Radoslav Bozadjiev, Deputy Minister of Transport and Communications, Mr. Nedelchev and Deputy Minister of Youth and Sports Mr. Feim Chausev. Minister of Agriculture, Shri Sharad Pawar co-chaired the JCM from the Indian side. An IT Forum was set up during the 15th JCM. The 16th session of JCM is due in Sofia.

   Joint Business Council(JBC)

The Indo-Bulgarian Joint Business Council was set up in 1976 at non-Government level between the Federation of Indian Chambers of Commerce and Industry (FICCI) and ASSOCHAM and the Bulgarian Chamber of Commerce and Industry. Eleven meetings of the JBC have so far been held alternately in India and Bulgaria. The 11th meeting of JBC was held in India in November, 2004 along with the 15th JCM. Deputy Economy Minister Radoslav Bozadjiev led a delegation of Bulgarian business people who participated in the JBC meeting.

   Joint Working Group on Information Technology

The 2nd Session of the Indo-Bulgarian Joint Working Forum on Information technology took place in Sofia during May 30-31, 2006. A MoU has been proposed by the Bulgarian side which is under consideration in the Indian Ministry of Information Technology and Communications. Deputy Chairman of the State Agency for Information Technology and Communications (SAITC) Mr. Dimitar Stanchev led an official delegation from Bulgaria to participate in ‘ELITEX-2007’ held from January 9-11, 2007 in New Delhi. The 3rd Session of the Joint Working Forum on Information technology will be held in New Delhi in October 2007.