Bilateral trade between India and the European Union is expected to reach Euro 70 billion in the next two years as against an estimated Euro 48.5 billion in 2006.
This was stated on Wednesday by Confederation of Indian Industry (CII) on the eve of India-EU Business summit which will kick start on Thursday in Helsinki, Finland. Prime Minister Manmohan Singh and his Finnish counterpart Matti Vanhanen will address the summit.
At present Finland holds the Presidency of the EU.
"If the current growth rates in trade continue, then by 2012, when India and EU should have a trade agreement in place, bilateral goods trade could be around Euro 150 billion," according to CII.
Services trade could also see a substantial rise and could reach close to Euro 75 billion, it added.
India and the 25-nation EU are planning to commence negotiations for a Trade and Investment Agreement which is expected to liberalise tariff on goods and services, besides improving investment flows.
"Both the sides should identify specific sectors where trade and investment flows can be enhanced," the industry body urged.
As of now only about 10-15 products cover more than 90 per cent of bilateral trade. These products include textiles and clothing, chemicals, pharmaceuticals, marine products and iron and steel.
A thirty-member CII delegation is accompanying the Prime Minister to Helsinki, where it will deliberate with its EU counterparts like EK of Finland, Confindustria of Italy and the pan EU trade association-UNICE.