Petko Doykov, Ambassador of Bulgaria to India |

Despite being one of the smallest European Union members, Bulgaria has very low public debt (as a percentage of GDP), which has kept it relatively immune to the sovereign debt crisis that has engulfed the monetary union. In a freewheeling interaction with The Dollar Business, it’s Ambassador to India, Petko Doykov, reveals that and talks at length about the potential of India-Bulgaria trade.

Interview by Vanita Peter D’souza | September 2015 Issue | The Dollar Business

Petko Doykov, Ambassador of Bulgaria to India

TDB: Bulgaria seems to be still stuck in the European sovereign debt crisis with its exports hardly budging in the last four years. Tell us about the economic ground realities back home.
Petko Doykov (PD): Well, all countries back home in the European continent suffered from the crisis and Bulgaria was no exception. But despite the crisis, my country’s economy has remained relatively stable. And it’s all due to the strict financial policies of the government. Here, I think I need to stress on the fact that my country’s budget deficit and public debt are among the lowest in the whole of Europe. Moreover, until the crisis in 2008, Bulgaria, at around 6%, had one of the highest GDP growth rates in the European Union. Of course, in 2009, the economy shrunk, but even since then, Bulgaria’s growth rate has been above the European Union average. This is something we are proud of. And one of the most important reasons for this above average growth is the inflow of foreign direct investment (FDI). Between 1996 and 2014, Bulgaria received about €44 billion as FDI and we are continuously trying to attract more. Finally, I would also like to state that for the past few years, our exports, which are a major driver of our economy, have witnessed a positive growth rate. In 2010 and 2011, our exports rose by 33% and 30% respectively. After some ups and downs, they are rising again. In the first five months of this year, our exports have risen 11% on a year-on-year basis. So, the bottom line is that the Bulgarian economy is doing well and efforts are underway to make it even better.

TDB: India-Bulgaria trade doesn’t seem to be anything more than just a bit of tokenism. What do you attribute this to? PD: I would not agree with this consideration. Though current figures are not very good, I want you to see them with a slightly different perspective. For example, according to Ministry of Economy (Bulgaria), in 2014, bilateral trade between India and Bulgaria reached $218 million. Though you might consider this a small amount, you need to remember that a decade back, in 2005, trade between our countries amounted to just $45 million. So, in 10 years, bilateral trade between the two countries has, actually, risen by 4x. Moreover, these figures do not cover one of the most important sectors – defence. Else, the number would be very different. Finally, I would also like to add that a part of our exports do not go directly to their destination. They go via Singapore and UAE. So, they are not included in the official statistics. TDB: Do you think there is enough people-to-people contact between India and Bulgaria? What are you doing to encourage the same? PD: A year back, in 2014, India and Bulgaria marked the 60th anniversary of the establishment of diplomatic relationships between the two nations. And throughout this entire period, we have enjoyed excellent relations. The political dimension of our relationship is also very important. Sumitra Mahajan, Speaker, Lok Sabha, is expected to visit Bulgaria before the end of this year and we are also working on a visit of India’s Vice President to our country. Both of these would be very important events. When political dialogue is good and active, it stimulates other areas of cooperation. However, it’s needless to say that areas such as education and people-to-people contact are also very important. The Bulgarian embassy here is trying to contribute to that process and has taken several initiatives that are focused on the future generation. It might surprise you, but Delhi University (DU), actually, offers Bulgarian language courses to Indian students. And we are proud of this fact. Several months back, I had invited these students to the embassy. And so far, we have invited four batches of 3-4 students each for a cultural and educational exchange programme. This has helped them expand their knowledge about Bulgaria. Similarly, in Bulgaria’s Sofia University students are learning Hindi. In September, I have invited Bulgarian students to come to the Indian embassy in Sofia for a similar exchange programme. We are also planning to hold joint lectures for all these students. I believe, these are the people, who will be working for more interactions between the nations in the years to come.  

TDB: Given the fact that most of your trade takes place with other EU members, how practical is it to expect a significant rise in India-Bulgaria trade?
PD: It is not impractical to have such expectations. There are two factors, which should not be underestimated and taken into serious consideration. The distance between the two countries is quite a bit and there are no direct flights between New Delhi and Sofia. Secondly, the business classes of the two nations lack awareness about the economic and investment environment in the other country. We are trying to cooperate with the Indian Embassy in Sofia and Ministry of Commerce (MoC) and Ministry of External Affairs (MEA) in India. We are trying to promote the exchange of delegations between the two nations and to ensure that we are working very closely with ASSOCHAM, CII, FICCI and their counterparts in our country, like the Bulgarian Chamber of Industry and Commerce, Bulgarian agency for the encouragement of SMEs, etc. I would also like to add that we are presently working with the Indian Embassy in Sofia and MEA and MoC to organise the next session of the joint commission of economic, scientific and logical cooperation by November this year. We have plans to hold this session in New Delhi and the Bulgarian Minister of Economy is expected to lead a delegation. I think it is going to be an important event and if things work out as planned, bilateral relations will get a further stimulus, especially in the field of commerce.

TDB: All India exports to Bulgaria is a bit of aluminium and imports a bit of chemicals. Which goods/commodities do you think can be traded between the two countries in a significant way? What do you think is the real potential of India-Bulgaria trade?
PD: As compared to India, Bulgaria is relatively a smaller country. But I think, we have goods and products that could be of interest to India. For example, Bulgarian agricultural products and wines could interest Indian players. The Bulgarian wine industry is very strong and I believe, if there is a will, there is a way. The Bulgarian perfumery and cosmetic industry is another sector in which we could seek cooperation. Our country is famous for rose oil and related products as well. On the other hand, we shouldn’t neglect important areas like engineering goods, hi-tech products, machinery and equipment and, of course, chemicals and pharmaceutical products. There are several Indian companies that are well established in Bulgaria. Cine Grand owns two cinema halls in our country and is working on a third one. Namdhari Seeds is working in the Bulgarian agriculture sector, which I think, is also a very promising area for cooperation. A lot of Indian pharmaceutical companies are also doing well in Bulgaria. I am not selling my country here, but I think, Bulgaria can be used as a springboard by Indian companies to enter the European market.
TDB: What is Bulgaria’s take on Government of India’s ‘Make in India’ initiative? Are you encouraging your corporates to participate in it?
PD: Needless to say, it’s an excellent initiative, not only for India, but also for other countries. Many countries are trying to take advantage of it and other initiatives that are working parallel with it. It’s a very positive step by the Indian government and we welcome and support it. In fact, a Bulgarian company has already started its broadband services here. Another Bulgarian company is venturing into the field of petroleum packaging in the country. A Bulgarian defence-products manufacturing company has recently opened its office in India. We, and the Indian embassy in Sofia, are promoting ‘Make in India’ together and have organised several campaigns, seeking investment and joint ventures. I think, if the production process in the joint ventures can be moved to Bulgaria, India can take advantage of the EU market as well.
TDB: When do you think will the proposed India-EU FTA see the light of day? What do you think are the main roadblocks it’s facing?
PD: It’s a long story and we all know about it. What I can tell you though is that signing the agreement, as early as possible, is in the interest of both India and Europe. An EU delegation is working very hard to make it possible and the Indian side is also paying it necessary attention. Increasingly, we are getting indications that the Indian side is also very interested in making it a reality. And we, as an EU member, are very much in support of the idea. I think, once the FTA is signed, even Bulgaria will benefit a lot. In order to get it done, negotiating parties should think out of the box and be ready to compromise a bit.  

 TDB: Given that tourism accounts for over 15% of Bulgaria’s economy, do you think enough Indians visit your country? What are you doing to sell Bulgaria as a tourism destination in India?
PD: Tourism, indeed, is an important sector of the Bulgarian economy. And I am happy that more and more Indians are visiting Bulgaria. For instance, in 2014, we saw a 60% growth in the number of Indian tourists visiting our country. So far, in the first half of 2015, 3,400 Indians have visited Bulgaria. Earlier this June, Bollywood stars Shah Rukh Khan and Kajol shot for an upcoming film – Dilwale – in Bulgaria. Even Ajay Devgan has visited my country. Bulgaria’s Minister of Tourism, Nikolina Angelkova is expected to visit India soon to present Bulgaria in a more positive way. We are working with Indian marketing and PR agencies for the same and are planning to hold roadshows for Bulgarian tour operators in Indian cities. We are also planning to participate in SATTE’s (South Asia Travel and Tourism Exchange) next edition in January 2016. Since Bulgaria is small country, we are not only working at attracting Indian tourists to our country, but also to other countries in the region.