Reversing the gypsy trail

Indians are coming to Romania with a lot of innovation and creativity.

There are some 2,000 Indians and NRI-owned companies which have invested about $1.72 billion in the pharmaceutical, auto, IT and steel sectors in Romania.

“Our flat tax structure of 16 % (corporate tax) and access to European market, due to our integration with European Union are the two big incentives for Indian companies to invest in Romania,” said Sofineti.

And certainly for India Inc, Romania seems more than a blip in the radar. Last year, pharma giant Ranbaxy bought a 96.7% stake in Terapia, a Romanian drug maker for $324 million.

The completely knocked down (CKD) kit of Logan, which is soon to be launched in India through a JV between Renault and M&M, is being manufactured by Dacia, a Romanian car maker and a 100% subsidiary of Renault.

Two of the major Indian IT companies, he said, are in negotiations with the Romanian government for setting up BPOs and development centres worth over $100 million. Industry sources claim that TCS is planning to open a global delivery centre in Romania, which will act as a gateway to the European market.

However, Sofineti declined to confirm the names.

Bilateral trade between India and Romania jumped from $120 million in 2003 to $475 million in 2006 and is slated to cross the $1-billion-mark by 2010.