Following its alliance with the European Union (EU), the Latvian economy has progressed on a steady growth trajectory. The Latvian government has played an active role in promoting trade and investment in the country. As a result, Latvia has emerged as a preferred destination for a large number of Indian SMEs.
Industrial landscape
The major industries driving the Latvian economy include electronics, textiles, synthetic fibres, pharmaceuticals and agricultural machinery.
India and Latvia share cordial trade relations. In 2007-08, the total trade between the two countries stood at $100.63 million. The major items exported by India to Latvia include metal products, chemicals, rawhides, transport equipment and mechanical appliances. Alternatively, Latvia exports food products, textiles, dyes and agriculture equipment to India.
Indian SMEs have found a lucrative market in Latvia, which also serves as an ideal gateway to the thriving Baltic market. Likewise, Latvian SMEs are also keen on forging strategic tie-ups and collaborations with their Indian counterparts to promote commodity and technical exchange. According to trade analysts, Indian SMEs can capitalise on the growing demand for Indian goods in Latvia.
Opportunities galore
Opportunities for investment and export for Indian SMEs exist in areas such as chemicals, oil, leather goods and auto components. Latvia also has a sizeable market for Indian vegetables and frozen foods. Indian F&B companies can therefore look at catering to the demand for such products by establishing trade linkages with Latvian distributors.
In addition, Indian SMEs can partner with their Latvian counterparts to cooperate in areas such as pharmaceuticals, telecom, IT and ITeS, heavy engineering, gems and
Jewellery Manufacturers and biotechnology.
The governments of India and Latvia have also realised the potential of Indo-Latvian trade relations that can benefit SMEs of both the countries. To support SMEs in the two nations, the Indian government inked an agreement in 2001 for the promotion of science and technology (S&T) cooperation.
In addition, India and Latvia signed a bilateral investment promotion protection agreement last yearto enhance the scope for mutual cooperation.
Such concerted efforts will strengthen Indo-Latvian trade relations and encourage Indian SMEs to foray into the Latvian market.
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David Parks is a well known author and has written articles on
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