SEPTEMBER 202119Deeper trade ties with the European Union acquired via this route would also mean that Indian SMEs would be able to do business with nations in a more regulated environment with a levelled playing field for both sidesproducts and services - stronger ties with the EU could be a game-changer for both nations. When Indian SMEs jump on a similar investment visa bandwagon with Europe. In that case, they could fill the existing need gap between the challenge (posed by India's trade deficits with many countries) and the opportunity (existence of many complimenting products) that stands before them. India's focus on building an Atmanirbhar Bharat (self-reliant) has given birth to a slew of small and medium enterprises under the 100-crore mark that can trade with Europe by either exporting or importing products/services. Deeper trade ties with the European Union acquired via this route would also mean that Indian SMEs would be able to do business with nations in a more regulated environment with a levelled playing field for both sides. However, if Indian companies limit the philosophy of an Atmanirbhar Bharat only within its domestic bounds, it will significantly restrict SMEs' growth. Identifying The Right Opportunities Despite an array of conversations around the topic, the question remains ­ How does a nation become a global power? A good case study to answer this question can be derived from India's own history as a British colony. Britain's journey to domination in the early years of colonization 1800s was driven by their search for trading opportunities worldwide. The more they moved away from their geographical borders, the more they flourished monetarily. Similarly, it is crucial to recognize that Indian SMEs can only avail opportunities sitting before them if they move away from the domestic borders and do business with countries that can invest in their growth. The EU is not only the country's largest trading partner at present but also its biggest investor. Deepening trade ties with the European Union through the most accessible routes, primarily through investment, can thus help India compete with China on the international front. There is a strong correlation between the number of investment visas issued and businesses trading in that country. Let us consider an example of an SME operating out of Jaipur who has acquired a residence permit for Portugal via the investment route. The company now gets a home market advantage to trade with Portugal and the other 27 EU countries. As opposed to this, trading in the EU will become significantly more complex for an Indian SME with limited capital and no base in Portugal. Therefore, when we dig deeper into this reality, we can see an emerging pattern that firmly upholds the findings. Subsequently, evaluating investment trends over the last two decades showcases that there has been limited to no major investment and trade between India and Greece. While Indian businesses have refrained from Identifying the underlying opportunity by developing relations with Greece, international conglomerates like Microsoft and Amazon have already built a solid foothold. While a more favourable trading environment offered by politically forged trade tied ease operations for Indian businesses, one must understand their fragility. Taking the investment visa route is a sure-shot way of expanding the presence of Indian firms in the European Union and strengthen their position in a nation which is still primarily dominated by the Chinese. Ashish S, CEO & Founder
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