India and European Union on Friday decided to work towards a trade and investment agreement with a view to enhancing bilateral economic cooperation.
"We are working towards that. We are trying to see it (becomes) part of India-EU strategic partnership," Commerce
Minister Kamal Nath told reporters on the sidelines of a Federation of Indian Chambers of Commerce and Industry meeting.
There has been a proposal in the past that there should be an investment cooperation, which includes investments securitisation, he said, adding that India and EU are very close from trade and investment point of view.
Earlier, speaking at the seminar, EU Trade Commissioner Peter Mandelson said uncertainties and lack of predictable legal environment acted as the main deterrent in attracting FDI flows from Europe to India.
He said if India was to achieve its ambitious 7-8 per cent sustained growth it was important that Indian markets opened up for foreign trade and investment.
"The Indian government accepts that these targets (7-8 per cent growth) will not be achieved unless Indian markets are opened to foreign tarde and investment," he said.
"I am here today to bring a ringing endorsement of this approach. India can only capitalise on its strengths and become major economic power though open trade and investment," he said.
