The 1972 trade and economic cooperation agreement between Spain and India is the first cooperation agreement in the history of our bilateral relations. The joint economic commission, which was established in this agreement, has become the most long-lasting bilateral dialogue to date and the one that has met on a greater number of occasions. This ongoing dialogue has led to an increase in our trade and investment exchanges in recent years, with India becoming a priority country in the internationalization strategy of the Secretariat of State for Commerce, selecting India as a PASE country (Country with Strategic Sectoral Performance). However, the volume of bilateral trade between Spain and India continues to be lower than the trade compared between India and the European Union and between Spain and other Asian countries. Likewise, there is still an enormous growth potential in bilateral investment, considering the ability to attract foreign direct investment that both countries exert in their respective geographic areas.
In this working document we analyze the dimension of the Indian and Spanish economies in the global context, also considering the impact of COVID-19 on them; the economic and trade effects of the new regional and multilateral geopolitical scenario; the European dimension of bilateral economic and trade relations; the state of bilateral investment and trade balance, as well as the respective sectors of greatest outreach; and public-private partnership and multilateral financing for infrastructure projects.