NEW DELHI, Nov 28: India and the EU pledged on Friday to nearly double bilateral trade from the current 27 billion euros ($32.2bn) to 50 billion euros by 2008 by knocking down trade barriers and agreeing pacts.

The pledges were made at the fourth EU-India Business Summit organized jointly by five industry lobby groups, the Indian government and the European Commission, which has drawn more than 350 businessmen and trade and government officials.

“We agree that we can take current levels of bilateral trade to 35 billion euros by 2005 and 50 billion euros by 2008,” said Indian Foreign Minister Yashwant Sinha.

However, the sudden cancellation due to illness of a visit to India by Italian Prime Minister Silvio Berlusconi at the head of the European delegation dampened sentiment.

“We are very happy to be here despite the unfortunate illness of Mr Berlusconi. We wish him a speedy recovery. I want to thank our Indian hosts for understanding,” EU External Affairs Commissioner Chris Patten told the meeting.

Patten urged India to boost trade by lowering tariffs, saying Indian consumers would benefit from competitive prices and greater choice.

“The European Union is one of the most open markets to Indian goods in the world. Out of a total of some 10,300 tariff lines, Indian exports are subject to either zero or reduced tariffs on 9,100 lines,” Patten told the Business Summit.

“European exporters to India, however, do not find trade as easy. India retains the reputation of a hard country to do business with,” he added.

Even though India substantially decreased customs duties on more than 3,000 goods since launching sweeping free-market reforms in 1991, foreign exporters accuse New Delhi of shielding domestic industry by following protectionist policies.—AFP