Prodi: Europe expects strong ties with India, China
(Agencies)
Updated: 2005-02-16 01:12

Italy's president on Tuesday said that Asia will drive global economic growth for the next two decades and that European countries like his must establish strong links with regional giants India and China to remain competitive.

"India and China's entry onto the world scene is radically changing the international political and economic balance," Italian President Carlo Azeglio Ciampi told Indian and Italian business representatives at an economic forum.

China and India are the world's most two most populous nations with more than 1 billion people each, and their economies have been among the fastest growing.

"To establish solid links with those countries is an absolute priority for the future of Europe ... Italy's production system, despite its dynamism and vitality, can only remain internationally competitive if it succeeds in breaking into emerging markets," said Ciampi, who arrived Sunday for a four-day visit.

He added, "It is becoming clear -- looking at the projections for the next 20 years -- that global demand will be increasingly driven by Asia."

India and Italy could cooperate in sectors including infrastructure, transport, chemicals, energy, aerospace, agriculture and the environment, he said.

Ciampi, however, said India must conform to the environmental, administrative and legal regulations that govern the market economy.

Foreign investors complain that India's failure to protect intellectual property rights was the biggest barrier to increased investment.

In response, India recently amended its patent laws to end decades of policies that allowed Indian firms to make cheap versions of expensive Western products.

On Monday, India and Italy signed agreements to cooperate in the fields of space, science and technology. Italy agreed to provide 150 research fellowships to Indians in science and technology.

Ciampi will return home on Wednesday.

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