Events & Issues

New Delhi, 13 September 2010

Polish PM’s Visit

PO-LAND OF OPPORTUNITIES ?

By Dr Malgorzata Bonikowska

President, India EU Council

The recent visit of the Polish Prime Minister, Donald Tusk, to India was one more significant pointer that Poland, a medium-big country in Central-Eastern Europe and one of the latest entrants to the European Union, wants to play a more active role on the global scene. Still in shock over the horrendously tragic air crash in April that killed Poland’s President, first lady and 94 other top political figures while on their way to Russia, the country is eager now to look to the future and far ahead. More so because Central-Eastern Europe has become important in the European Union.

With a population of 38 million as in the case of Rajasthan and its size the same as that of Maharashtra, Poland was the only country of the EU to be on GDP plus (1.8%) in 2009, the year of the global economic crisis. The estimate for this year is even better: 3.0%, in comparison to only 1.9% in Germany and 1.4% in France, when the Euro zone average is 1.2%. This is proof that the Polish economy, after 21 years of free market, is stable. The country hasn’t yet decided to introduce the euro but declared to do so in the near future, as was written in its Accession Treaty. It is a NATO member since 1999 and entered the Schengen zone in 2007.

Being the biggest new member state, Poland also shows ambitions of playing a leading role in the region. The countries which were part of the Soviet Block can now paradoxically use their common experience as an asset, particularly in relation to India. When the West is looking towards Asia for economic revival, the Central-Eastern Europe can well make a profit out of it by banking upon old relations and a good reputation. The region today is still a cheaper business option than the West with all the benefits of a European Single Market.  

Given this background, the Polish Prime Minister had three reasons to come to India. First, it was a continuation of the good political climate built during a State visit to Poland by India’s President, Pratibha Patil, last year. Tusk received a warm welcome by Patil, his counterpart Manmohan Singh, UPA Chairperson Sonia Gandhi and Leader of Opposition Sushma Swaraj in New Delhi. Second, Poland and India signed an important cultural agreement which will allow both the countries to work closer in areas such as cultural heritage, protection and conservation of monuments, prevention of illicit transport of cultural property, promotion of eminent artists and their works, cooperation  between the National Archives, Libraries and museums. The agreement also covers film production and promotion as Bollywood is becoming popular amongst the Poles, cooperation in the field of dance, theatre, music, visual and fine arts and literature.

Last but not the least, the visit was to encourage business tie-ups between the two countries and convince the Indian entrepreneurs to see Poland as a good business destination. More so, as Indo-Polish economic relations were very vibrant in the 60s, 70s and the 80s, when Polish engineers and experts were working in Nehru and Indira Gandhi’s socialist India, building factories, water plants etc. The past is still remembered and can help general a good climate for business cooperation today. Poland continues to export to India equipment for its power plants, mines and railways, as well as chemicals, metals, machinery and arms. The Polish delegation was particularly keen that India carries forward important contracts in the defence sector.

At the same time, Warsaw is looking for new business opportunities in renewable energy, heavy engineering, infrastructure, new technologies, environment, waste management, healthcare, education and tourism. The Poles have noted that consumerism is growing in India and that there is good reason for their entrepreneurs to seek a market away from Europe.

Insofar as Indian companies are concerned, the visit seeks to send across the message that Poland today is a land of opportunities, a “gateway to Europe”, as put across by Tusk. The areas that the Indians could look out for new business opportunities could well be agriculture, food processing, textiles, IT, infrastructure and tourism. Moreover, Poland’s disinvestment and privatization policy can provide interesting opportunities as well. 

Poland today is the largest Indian trade and investment partner in Central-Eastern Europe and the prospects are even better --in the Ministry of External Affairs’ opinion Poland can be among the top five trading partners in Europe in the next five years. Import and export between the two nations has crossed US $ 1 billion and is expected to double before 2014. Clearly, both sides need each other: India is listed as No. 8 job creator in Europe (Ernst and Young report) while Poland still struggles with a high unemployment rate (11,4 % this year). In 2008, the total investment of Indian companies in Poland was US $ 28 billion. Tata Consultancy, Wipro, Infosys, Zensar Technology, Videocon, Reliance Industries and Arcelor Mittal Steel (formally not Indian) are just a few examples of those who are already there.

Other than a stable economy and promising business opportunities, India should view Poland as an important member of the EU, if it doesn’t yet. The country supports European integration and considers its membership to the EU as crucial, both for the present and the future. In the same time, Poland wants to make its own position in the Union stronger by forging strategic partnerships with countries such as France and Germany - the spirit behind the European integration process. This is a revival of the Polish concept of so-called “Weimar Triangle”, which didn’t work years ago. However, in the changed circumstances, Poland being an EU member, the challenge will now be to make this “trio” play.  

Since January 2010, when the Lisbon Treaty came into force, the European Union was finally given a clear legal status, with a President and a Foreign Minister at the helm. However, this does not change the fact that final decisions rest with all the member States. With as many as 27 countries in the Union, there is bound to be differences of opinion and conflict of interest, especially in the area of the Foreign and Security Policy, which is “common” only in name. New Delhi is well aware of this fact and appears not to treat Brussels too seriously. Instead, it gives preference to bilateral diplomacy. From this point of view, Poland can help India develop good relations with the EU. The timing could not be better as Poland takes over the Presidency of the European Union in the second-half of 2011. Prime Minister Tusk stated during his visit that India cannot find a better friend than Poland. Time for New Delhi to take him up on his word and move ahead!  ---INFA

(Copyright, India News and Feature Alliance)