Indo – Bulgarian Trade Relations
Economic Ties between India and Bulgaria
India and Bulgaria have traditionally enjoyed very close and friendly relations. The two countries established diplomatic relations in 1954. Since then there have been frequent high level visits from both sides including the Presidents and Prime Ministers of both countries.
During these visits several bilateral agreements have been signed between the two countries in order to facilitate trade and cultural ties between the two countries.
After adopted a democratic constitution in 1991, Bulgaria is today a unitary, parliamentary republic. Bulgaria became part of the European Union from January 1, 2007. It is also a member of NATO and the Council of Europe. Bulgaria is a founding member of the Organization for Security and Co-operation in Europe (OSCE); and has taken a seat at the UN Security Council three times.
In 2018 Bulgaria will take over the rotation presidency of the Council of the European Union for the first six months.
Strong Potential for Growth
Stable Economy & Favourable Investment Climate
With an annual rate of growth of 3.6 % recorded in 2016, Bulgaria is the 6th fastest growing economy in the EU. It has the lowest tax rate in the EU at 10 %. Additionally, low cost of highly skilled labor, affordable commercial and residential rentals and a business friendly government makes Bulgaria an ideal place to start a business.
Bulgaria’s strategic location at the cross-roads of the European and Asian continents, make it an ideal location and starting point for Indian investors looking for unlimited and duty-free access to the EU market.
Advantage of Bulgaria
After its transition to democracy and a market economy in the early 1990s, Bulgaria has made impressive progress politically, economically and socially. The country is now the 2nd best information technology outsourcing destination in Europe. In agriculture it is amongst the leading producer of lavender and sunflower seeds. Several high tech machinery and auto component manufacturers have set up base in Bulgaria.
Indian companies have recognized Bulgaria as a hot new market and making investments in the country. Companies such as Namdhari Seeds, Elder Pharma and many information technology companies have started operations there.
Under the Investment Promotion Act of the Government of Bulgaria, various benefits for foreign investors and provided such as corporate tax or VAT exemptions, institutional and financial support for priority investment projects. For starting a business, the procedures are simple and transparent.
Bulgaria is also now emerging as a major hotspot for tourism. The country’s natural beauty and landscape has already attracted the attention of Indian film makers. Many of them have shot films in Bulgaria and more are expected in the near future. In 2016, Bulgaria was visited by more than 10000 Indian tourists.
Reasons to Invest in Bulgaria
Bulgaria is crossed by five major Trans European corridors, providing easy access to regional and European markets
Two of the largest ports at the Black Sea, Varna and Burgas are located in Bulgaria, both connected to the trans-European corridor VIII, which links the Adriatic and the Black Sea.
There are 12 functioning industrial zones and 26 more under development, all of them suitable for manufacturing companies.
Infrastructure development is a priority for the Bulgarian government .
Stable parliamentary democracy, EU, NATO and WTO member .
Lowest tax rate and one of the lowest labour costs in the EU coupled with special incentives for investors
EU funding – more than €10 billion in EU funds over the next years.*
*Source – Invest Bulgaria