The Bulgarian Prime Minister Sergey Stanishev paid a state visit to India from 10 to 15 September. This was the first visit by a Bulgarian Prime Minister to India since 1974. The visit has been described as very fruitful in reaffirming Bulgaria’s partnership with India in the radically changed conditions after it joined the European Union.

Agreements Signed

During the visit, the two sides signed many documents; chief among them were the Agreement on Economic Cooperation, and Treaty of Mutual Legal Assistance in Criminal Matters and Extradition.

The Bulgarian Prime Minister held extensive talks with Indian Prime Minister Dr Manmohan Singh on matters of mutual interest on bilateral, regional and global issues. The focus was more on mutual cooperation and partnership between Bulgaria and India in trade, defence, science and technology, culture and education.

Views were also exchanged on terrorism, climate change, disarmament, and non-proliferation. The two sides underscored the need for reform in the UN Security Council to induce more transparency and efficiency.

EU Membership

India welcomed the accession of Bulgaria to the EU, which presented the latter with new opportunities for closer and more dynamic bilateral partnership within the framework of EU-India Strategic Partnership. India appreciated the constructive role played by Bulgaria in South Eastern Europe and in the Black Sea region.

The Bulgarian Prime Minister expressed his deep appreciation of the constructive role played by India—home to one sixth of humanity, the world’s largest democracy and a fast growing economy—in promoting peace, understanding and cooperation in Asia and the rest of the world.

Bulgaria reiterated its support to India’s candidature for a permanent seat on an expanded UN Security Council and offered reciprocal support for India being in the council in 2011-12 and Bulgaria in 2018-19.

The Bulgarian Prime Minister also called on Indian President Pratibha Patil and Vice President Hamid Ansari. He also met Lok Sabha Speaker Somnath Chaterjee, Minister for External Affairs Pranab Mukherjee, UPA Chairperson Sonia Gandhi, and Opposition Leader L K Advani during the visit.

Prime Minister Stanishev extended invitations to Prime Minister Dr Manmohan Singh and President Pratibha Patil to visit Bulgaria. The Indian leaders have accepted the invitations.

Energy

India and Bulgaria will work towards closer bilateral cooperation in the oil and gas sector. This will be part of the global efforts to address the challenges of climate change and changeover to cleaner and renewable energy sources. India has demonstrable strength and expertise in wind energy. A joint venture is in the cards to set up a solar power plant in Bulgaria.

During the talks, the two countries touched upon the need to tackle the challenge of climate change through international cooperation in adaptation, mitigation, capacity building, technology transfer, adequate financing, and development of carbon market.

Bulgaria hailed India’s initiatives in deploying nuclear energy for peaceful uses and noted that civil nuclear energy could play a very important role in ensuring safe, sustainable and non-polluting energy supply to meet the rising demand.

The two sides also agreed to review the Air Services Agreement of 1992.

Trade and Investment

During the official talks, the two sides agreed on the need to enhance trade and investment. India is Bulgaria’s number one trading partner in South Asia. In 2006, the annual two-way trade amounted to over US$75 million.

Bulgaria solicited more Indian investment in the steel, metallurgy, chemical industry, electronics, IT and engineering sectors.

Indian investment in the Bulgarian economy continues to be very low. Between 1996 and 2004, Indian investment in Bulgaria totalled US$260,000. India’s Global Steel Holding LTD (GSHL) has 70 percent stake in the Kremikovtsi Iron and Steel Works, Sofia.

At present, there are only 40 fully Indian-owned companies and 20 joint ventures with Indian corporates on the register of the Bulgarian Chamber of Commerce and Industry.

Says Dragovest Goranov, Bulgarian Ambassador to India, “There is a new momentum at the trade and investment front. The response at the Indo-Bulgarian business meet was really overwhelming.” He added, “There is immense scope for joint ventures by Indian companies in Bulgaria in areas like food processing, highways construction, hydropower and construction.”

Goranov mentioned that the corporate tax in Bulgaria is set to go down soon. This will further boost the investment scene. The new corporate tax will be around 10.5 percent.

As a follow up, the Bulgarian Embassy in India is planning to hold a high-level business conclave of Indian and Bulgarian business leaders to explore more investment opportunities in IT and communications sectors, the ambassador informed.

On the cultural front, the Indology Department at the University of Sofia and the Bulgarian Studies Programmes in Delhi University and Jamia Millia Islamia University are considered important milestones in bilateral exchange. A good number of Indian students are studying at the Higher School of Medicine in Pleven in northern Bulgaria.

Sergei Stanishev took time to visit the Department of Slavonic & Finno-Ugrian Studies, University of Delhi and delivered a lecture at the Indian Council of World Affairs, New Delhi on the topic “Bulgaria in the European Union; Fostering Bulgarian- Indian Partnership”. The Bulgarian Prime Minister also visited Bangalore and Chennai and interacted with several IT entrepreneurs and leaders.

The Bulgarian delegation comprised Snezhana Grozdilova, who chairs the Bulgaria-India Group in Parliament, Deputy Foreign Minister Feim Chaushev, Deputy Education and Science Minister Vanya Dobreva, Invest Bulgaria Agency Executive Director Stoyan Stalev, Bulgarian Small and Medium Enterprises Promotion Agency Executive Director Stanimir Burzashki, Bulgarian Academy of Sciences Vice President Nikola Subotinov and Space Research Institute Director Peter Getsov.