This article sets out trade and investment links between India and Portugal: trade figures from Indian and Portuguese sources, the main goods traded, investment in both directions, and the institutional mechanisms for economic cooperation. It is based on the Ministry of External Affairs (MEA) bilateral brief of November 2022. All figures are as given in that brief and refer to the periods it states.
Trade in 2021-22
According to the MEA brief of November 2022, citing DGFT data, India-Portugal trade in FY 2021-22 amounted to US$1,356.34 million. Indian exports stood at US$1,191.80 million and Portuguese exports at US$164.54 million.
Earlier years
The brief includes a DGFT table, in US$ million, retrieved on 22-11-2022. For the three years before 2020-21 it gives:
- 2017-18: Indian exports 747.32, imports 190.15, total trade 937.47
- 2018-19: Indian exports 743.27, imports 132.83, total trade 876.09, a change of -6.55 per cent
- 2019-20: Indian exports 744.79, imports 141.82, total trade 886.60, a change of +1.20 per cent
The table records growth of 7.27 per cent in 2020-21. The export, import and total figures for 2020-21 are not legible in the text version of the brief, so they are not reproduced here.
Portuguese statistics for 2022
The brief also cites Portugal's Institute of National Statistics (INE). Between January and September 2022, India-Portugal trade amounted to €1,057.84 million, up 52.56% year-on-year, with the trade balance firmly in India's favour.
In the same period, Indian imports were worth €119.54 million, up 19.34% year-on-year, and Indian exports were worth €938.30 million, up 58.16% year-on-year.
Main items traded
The brief lists the major Indian exports to Portugal as:
- textiles and apparel, including ready-made garments
- agriculture products
- metals
- chemicals
- plastic and rubber
- footwear
- machinery and appliances
- leather and its articles
- vehicles and transport materials
It lists the major Portuguese exports to India as machinery and appliances; metals; minerals; plastic and rubber; chemicals; textiles and apparel; paper and pulp; wood and cork; and optical and precision instruments.
Portuguese investment in India
The brief states that Portugal ranks 51st in Foreign Direct Investment (FDI) into India, with total cumulative FDI equity inflows from 2000-2022 worth US$ 120.91 million, according to DPIIT data of June 2022.
Major Portuguese companies present in India include Visabeira; Vision Box, a technology company; Portind Shoe Accessories, an ancillary of the Portuguese footwear manufacturer Soprefa; Martifer, in metals; Efacec, in industrial machinery, equipment and tools; and the Petrotec Group, in retail petroleum and oil distribution.
Indian investment in Portugal
Indian investments in Portugal are estimated to be in the range of up to US$ 450 million. It names Generis, part of the Aurobindo Pharma Group, the MGM Group (hotels) and the Sugee Group (real estate), as well as Mahindra, WIPRO, HCL, TCS and Zomato.
Sectors identified in the brief
The brief lists potential areas for Portuguese companies in India as Infrastructure and Construction; Renewable Energy, especially solar and wind power; Footwear; Textiles; Tourism and Hospitality; Defence and Aerospace; IT and Electronics; Water and Waste Management; Startups; and Agriculture and Food Processing.
Institutional mechanisms
A Joint Economic Committee exists at the level of Ministers of State for Commerce from both sides. The 5th Joint Committee Meeting took place in New Delhi on 8 April 2021. Bilateral Joint Working Groups exist in fields including IT and Electronics, Renewable Energy, Defence, and Agriculture and Allied Sector.
The India-EU dimension
At the India-EU leadership Summit of 8 May 2021, held under Portugal's EU Presidency, India and the EU vowed to resume trade talks, which had been stalled since 2013 over market access issues. A virtual EU-India Business Roundtable was held on 8 May with the presence of PM Costa and the CIM (Commerce and Industry Minister), with sector debates on climate, health and digitalisation.