EU-India trade has grown impressively over the years, from €4.4 billion in 1980 to €40 billion in 2013. Trade with the EU represents more than 20% of Indian's exports and import and EU thus as a bloc is India's largest trading partner. The EU is also India's largest source of foreign direct investment. However, India accounts for just 1.8% of total EU trade. India attracts only 0.3% of the EU's world-wide investments.

India's regime for Foreign Direct Investment (FDI) has been considerably simplified and liberalized, however important sectors still remain restricted for FDI (e.g. telecommunications, retail distribution, insurance, banking, aviation) or are banned (e.g. legal services).

The EU is India's largest source of foreign direct investment (FDI). In 2013 EU investment outflows to India amounted to €1.1 billion and represented 0.9% of total FDI outflows from the EU. EU investment has mainly taken place in the power/energy telecommunications and transport sectors.

India is a member of the Multilateral Investment Guarantee Agency and the 1958 New York Convention on Recognition and Enforcement of Foreign Arbitration Awards.

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