Social security benefits, smooth visa procedures and attractive fiscal instruments form the Belgian Prime Minister Guy Verhofstadt's basket of incentives to entice Indian investors.
Signing of a historic social security agreement with India will be highlight of Belgian PM’s trip
Karishma Bhansali Mehta
BRUSSELS: Social security benefits, smooth visa procedures and attractive fiscal instruments form the Belgian Prime Minister Guy Verhofstadt's basket of incentives to entice Indian investors when he makes his first official visit to the country this Thursday.
Aiming to make Belgium, India's gateway to Europe, the pro business Indophile will be visiting Delhi, Mumbai, Chennai and Bangalore during his 5 day visit, starting November 2.
He intends to make strong political contacts at the highest level and will be meeting President APJ Abdul Kalam, Prime Minister Manmohan Singh and UPA chairperson Sonia Gandhi among others.
The highlight of his trip will be the signing of a historic social security agreement with India. The deal which is the first agreement of its kind that India has signed with another country in social security, was concluded in Brussels in June 2006.
Indians who live and work in Belgium for a period of 5 years will be exempt from contributing to the Belgium social security system.
Secondly, the deal ensures repatriation benefits for those Indians who live and work in Belgium on a long-term basis.“This will bolster investments in Belgium,” Verhofstadt told INEP in an interview.
In an answer the Indian business community's complaints regarding tedious visa procedures, Belgium has outsourced part of the visa processing function to a private company in Mumbai to ensure delivery in 24 hours.
“You can't be the centre of Europe, try to attract every headquarter and then make it difficult to obtain visas,” Verhofstadt added.
Noteworthy fiscal incentives include a notional interest deduction instrument on companies that invest their own capital in Belgium as well as a withholding tax on research.
Verhofstadt will also sign MOUs in the field of science and technology during his visit. India is at the heart of Belgian foreign policy. In 2005, 33 per cent of Indian foreign investment went to Belgium.
The two countries share a close economic relationship owing to a formidable Indian business community that dominates 60 per cent of the diamond trade worth 26billion euros in the Belgian port city ofAntwerp.
“The Indian community in the diamond sector will be an example to other businesses entering Belgium.” Verhofstadt said.
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