Spain holds its biggest trade exhibition ever-Expotecnia 97
IF the $1-million promotional campaign is any indication, then Spain is serious. On hoardings and in newspapers across the country, Spain is selling itself as far more than a country of bullfighters and Sanchez-Vicarios. And as the six-day-long Expotecnia takes off in New Delhi on October 1—it's the largest exhibition of a country's goods and services ever to be organised in India—the Spanish government hopes that Spain will be better known for its business activities.
Why has trade with India become so important for Spain? Says Manual Tapia, commercial attache at the Spanish Embassy, who is supervising the organisation of the exhibition: "We decided to shift the focus of our investments from Latin America to Asia, since it is one of the largest emerging markets." He explains that the Spanish government now feels sustained support in the form of large investments are not required in Latin America anymore; India could well be the next big investment destination.
The Spanish government has been working for over a year now on Expotecnia. Apart from the advertising blitzkrieg, Tapia has been personally addressing businessmen across the country, including eight big cities and 10 smaller towns. Spain hopes that many of these highly-focused meetings will translate into joint ventures soon. So, while India stands to gain with advanced technology, Spanish businessmen shall get access to expanding markets.
Among the high-priority areas are agriculture, food processing, auto components and machine tools, apart from its hotel industry, the quality of which is among the best in the world. During Expotecnia, Indian businessmen can talk directly to nearly 60 Spanish companies. With investment plans of over $500 million (Rs 1,800 crore), these companies are eyeing India to corner a share of the buying power of the great—but perhaps foggy—Indian middle class. Among the biggies eyeing this market are automotive component manufacturer Ficosa International, and food products giant Frictmar, apart from over 200 others in sectors as diverse as aviation, agricultural machinery, electronics and industrial production.
As part of its plan to focus on the Asian markets, Spain has held such exhibitions in Beijing and Bangkok. Already plans are in place to hold the next one at Jakarta two years from now.
Officials in the commerce ministry say that no other country has worked so hard to promote its trade with India. One possible reason: considering that Spanish businessmen—accustomed to competing in the European Union where there are no barriers—have not really been exposed to protected regimes. A large part of the investments proposed by Spanish companies would be to meet demand in markets in other parts of the world. The ball was set rolling sometime ago when the two countries signed the double taxation relief agreement.
The Beijing exhibition in 1994, where turnover was worth $700 million, including $254 million in contracts, sale of machinery and equipment worth over $37 million, besides $10.5 million in joint ventures. It might sound astounding, but in the 1970s, Spain was in the same position where India is today. Going by its current status, Indian businessmen and government could learn a lot from Expotecnia.