Expansion of EU :: Economics Trade Indian IT Companies Essays

Expansion of EU The EU Expansion of May 2004 On May 1, 2004, new members were added to EU. The current round of expansion brings 10 new EU kids on the block: Slovenia, Hungary, Slovakia, Czech Republic, Poland, Lithuania, Latvia, Estonia, Cyprus, and Malta. There are more to follow in the EU candidate list. Many of these countries are of varying economic strengths and per capita incomes. The average Gross National Product of the newer countries is significantly different from the first 12 member nations of the EU. Indian IT Industry India has a well-trained work force and the largest pool of English speaking workers anywhere outside native English speaking countries. India produces more engineers and MBAs than any European country. The educated workforce and the currency exchange rates are the prime factors that make India a very attractive location for software development. India’s quality workforce is among the least paid in the world, yet the workers can afford a good standard of living, due to relatively low cost of living in India. Due to these factors, India has emerged as leading software exporter in the world. USA and Europe are the biggest markets for the Indian software companies. The IT exports were worth $12.5 billion in the fiscal year 2003-2004. Trade between India and Europe Before the formation of the EU, USA was the single largest trading partner for India. Many European countries like UK, Germany and France were the other major partners. After the EU came into being, it has replaced USA as India’s leading trade partner. The major industries involved in India-EU trade are steel, cement, Computer Software, etc. India has had much greater business relations with the western European countries as compared to the eastern European countries. Bilateral trade between India and UK grew by over 20% during 2003. The UK is the second largest investor to India. India was the 8th largest investor in the UK in 2003. The UK attracts over 60% of India's investment in Europe. India is the UK's 17th largest export market. India and Germany have strong bi-lateral trade relations. Last year, Germany's trade volume with India totaled some â‚ ¬5 billion ($5.6 billion). India’s IT sector has very strong business relations with Germany. The Changing Scenario? The basic principles on which EU functions involve removal of trade barriers among member countries and facilitation of free movement of people within the EU. Does this also involve restrictive trade practices and exclusion of workers from non-EU countries?