“The Basque Country is responsible for producing nearly 80% of the machine tools made in Spain and exports over 80% of its production worldwide. With a turnover exceeding 1,600 million euros, the machine tool industry holds a significant position in the Basque industrial landscape, directly employing over 7,600 highly skilled engineers,” says Hemant Agarwal, Director – India Office, BASQUE TRADE & INVESTMENT in conversation with Nishant Kashyap.
Can you provide an overview of the mission and objectives of BASQUE TRADE & INVESTMENT in India
Basque Trade & Investment (BT&I) has a twofold mission: to showcase the Basque Country’s potential as a global leader in knowledge and innovation, and to facilitate its access to international markets. We focus on highlighting the Basque Country’s role as a top hub for technological innovation, particularly in its thriving machine tool industry, boasting 50 exporting companies. This sector competes strongly with established markets in Germany, Italy, and Switzerland.
The Basque industrial sector significantly boosts our GDP, making up nearly 25%, which is about 5 percentage points higher than the European average.
Moreover, acknowledging the necessity for Basque companies to expand globally, BT&I is dedicated to supporting their international growth. Despite being a relatively small region in Europe, the Basque Country boasts a highly internationalized economy, with exports accounting for over 30.5% of our GDP, similar to Germany and much higher than Spain or France.
To achieve this goal, our extensive network of 22 offices worldwide, including our Mumbai branch, plays a vital role. We offer comprehensive services to Basque companies, helping them explore new markets, establish strategic partnerships, and seize emerging business opportunities globally.
What specific services does BASQUE TRADE & INVESTMENT offer to companies based in the Basque region looking to expand their business globally?
At Basque Trade & Investment, we offer a wide range of services designed for Basque companies looking to expand globally. Our services include market research, finding business partners, and logistical support.
We conduct detailed market studies to assess potential and identify growth opportunities in target markets. Our sector-specific research reports provide essential information to guide strategic decision-making.
We also help companies find agents, distributors, and partners for joint ventures, easing their entry into new markets and establishing vital business connections.
For companies interested in setting up in India, we provide practical support through the entire setup process, including registration, office rental, and staff recruitment.
Additionally, we assist companies in finding suppliers for specific products and offer guidance on participating in public tenders.
We also organize delegations of Basque companies, arranging visits to trade fairs, industry associations, and key companies in India.
Through these services, we aim to empower Basque companies to expand their operations and seize growth opportunities in international markets.
How does BASQUE TRADE & INVESTMENT support Indian companies interested in doing business with Basque companies or investing in the Basque region?
We support Indian companies interested in collaborating with Basque companies or investing in the Basque region through various initiatives.
We facilitate meetings and organize delegations from India, fostering direct connections between Indian and Basque businesses. These initiatives enable seamless collaboration and partnership opportunities between the two regions.
Our Basque investment team provides comprehensive guidance to potential investors, assisting them throughout the process of setting up a manufacturing plant or establishing an office to provide technological services to Basque companies.
Can you discuss trade between India and Basque Country and how it can be enhanced further?
Trade between India and the Basque Country poses challenges in accurately estimating its true value, as many companies source their products from factories located outside the Basque Country, such as in China.
Raising awareness about the capabilities of the Basque Country is crucial for enhancing trade relations between the Basque Country and regions like India. By increasing awareness, we can foster greater collaboration and partnership opportunities, ultimately improving trade relations.
According to you what Indian manufacturing companies can learn from the Basque companies?
From a practical standpoint, Indian manufacturing companies can gain valuable insights from their Basque counterparts, who have a culture deeply rooted in innovation and transparency since their beginning. This ethos permeates all aspects of their operations, from product creation to sales strategy.
Thanks to this dedication to continuous improvement, Basque companies have successfully positioned their products at the forefront of the market. Today, they have a global presence, particularly in highly competitive sectors.
Talking about Basque machine tool industry. What are the current trends in the Basque machine tool industry?
First and foremost, we must recognize the crucial role played by machine tools in the advancement of various industrial sectors. Situated at the foundation of the value chain for nearly all industries, their impact is far-reaching. Simply put, having access to top-quality machine tools enables the production of superior products.
In particular, the Basque Country is responsible for producing nearly 80% of the machine tools made in Spain and exports over 80% of its production worldwide. With a turnover exceeding 1,600 million euros, the machine tool industry holds a significant position in the Basque industrial landscape, directly employing over 7,600 highly skilled engineers.
Currently, the industry is transitioning from Industry 4.0 to Industry 5.0 standards, placing special emphasis on the development of automated solutions with high added value, the integration of predictive maintenance based on AI, and the utilization of digital twins. All these efforts are geared towards enhancing efficiency and sustainability, while prioritizing the needs and objectives of customers.
BIEMH, Spain’s largest machine tool exhibition is around the corner. How can this event help Indian companies enhance their business in European market and vice versa?
As you know, Europe is well-known for its high-quality standards, and it’s essential for Indian companies to adopt modern manufacturing practices to align with the European value chain.
BIEMH hosts over 1000 companies showcasing their latest products, along with conferences discussing current trends like Industry 5.0 and Robotics. This is a chance for Indian companies to attend these sessions, have one-on-one discussions with exhibitors to address their specific needs, and find customized solutions. Since the engineering sector is rapidly growing in India, BIEMH also provides Basque companies with opportunities to find new clients and expand their business horizons.
Please share your opinion of future of trade between India and Basque Region
India and the Basque Country complement each other well. India shines in sectors like Pharmaceuticals, IT, and Textiles, while the Basque Country excels in engineering, renewable energy, energy efficiency, and advanced machine tools.
Aligned with Prime Minister Modi’s vision, India aims to increase manufacturing’s share in GDP from 17% to 25% by 2026, positioning itself as a major manufacturing hub. Achieving this requires a transformation in the manufacturing ecosystem.
The Basque Country can be a valuable partner in this journey, offering the Indian industry the competitive edge it needs. With the Basque Country’s expertise and India’s ambition, there are promising opportunities for growth in trade between the two regions.
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