India and Romania Forge Deeper Economic Ties, Eyeing Enhanced Investment and Trade

India and Romania are strengthening their economic partnership, with a focus on boosting investments and industrial cooperation. A prominent Indian business delegation, headed by Minister of State for Commerce & Industry Jitin Prasada, participated in the India-Romania Business Forum, organized by the Chamber of Commerce and Industry of Brașov. The discussions revolved around enhancing bilateral ties in priority sectors including automotive, aerospace, defense, renewable energy, engineering services, and Information and Communication Technology (ICT).

Minister Prasada also held bilateral discussions with Romania's Minister of Foreign Affairs, Oana-Silvia Țoiu, to advance trade, attract investments, and reinforce resilient supply chains within the broader India-EU economic landscape. A significant outcome was the agreement to work towards concluding a fair and mutually beneficial India–European Union Free Trade Agreement (FTA) within the current year.

Prasida extended an invitation to Romanian enterprises to participate in India's manufacturing and innovation ecosystem through initiatives like the 'Make in India' campaign and the Production Linked Incentive (PLI) schemes. The forum facilitated the signing of Memoranda of Understanding (MoUs) and matchmaking sessions aimed at exploring joint ventures and technology partnerships. Trade figures indicate India's exports to Romania reached $1.03 billion in FY 2024-25, with total bilateral trade amounting to $2.98 billion in FY2023–24.

**Impact**: This enhanced cooperation and pursuit of an FTA are expected to lead to increased trade volumes, new investment opportunities in identified sectors, and stronger economic linkages between India and Romania. It diversifies India's international economic partnerships and could provide a boost to companies operating in these strategic industries. **Rating**: 7/10.

**Difficult terms**: * **Bilateral Investment**: Investment made by a company or individual in one country into business interests located in another country. * **Industrial Cooperation**: Collaboration between industries of different countries to enhance productivity, technology transfer, and joint ventures. * **Information and Communication Technology (ICT)**: Refers to all components of hardware, software, and services that are used for the manipulation and processing of information. * **Free Trade Agreement (FTA)**: A treaty that reduces or eliminates tariffs and other trade barriers between two or more countries, facilitating easier trade. * **Make in India**: A government initiative launched in 2014 to encourage companies to manufacture products in India, thereby boosting domestic manufacturing and job creation. * **Production Linked Incentive (PLI) scheme**: A financial incentive offered by the government to Indian companies to increase their production and sales of manufactured goods, encouraging self-reliance. * **Memoranda of Understanding (MoUs)**: A preliminary or exploratory agreement between two or more parties, outlining the common line of action or understanding.