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Slovenia is one of the most prosperous countries in Central Europe. Subsequent to its affiliation with the European Union in 2004, the country has moved towards privatisation. The Slovenian government has also undertaken a number of structural reforms to boost the economy and generate employment opportunities.

It managed to achieve a significant growth rate of 4.3% in 2008. As a result of these concerted efforts, several Indian SMEs are seen entering the Slovenian market.

Major industries in Slovenia include electronics, automobiles, textiles, wood products, ferrous metallurgy, machine tools and electric power equipment. In addition, industries such as pharmaceuticals, paper and furniture provide a major thrust to the Slovenian economy.

India is one of the most important Asian trading partners of this mountainous republic in central Europe. It is Slovenia’s chief exporter of leather, coffee, linen, alloys, antibiotics and automotive parts. While, Slovenia exports stainless steel, plastic products, paper, electric equipments and heterocyclic compounds to India.

Setting sights on Slovenia

A growing number of Indian SMEs looking at establishing trade linkages in central Europe are finding Slovenia a lucrative destination for long-term growth and investment. Slovenia’s business-friendly environment, strategic location, infrastructural facilities, low tax regime and government support are some of the factors working in its favour.

In addition, Slovenian economy is ranked as one of the leading export-oriented countries in the world. Industry experts therefore foresee a plethora of opportunities waiting to be tapped by the Indian SMEs in Slovenia.

Some of the potential areas of mutual cooperation and investment are food processing, pharmaceuticals, textiles and auto component industries. Furthermore, Indian SMEs can forge alliances and undertake joint ventures with their Slovenian counterparts engaged in fields like metal processing, biotechnology and realty.

Promoting trade and investment

In view of the abundant trade and investment opportunities that can be explored by India and Slovenian firms for mutual benefit, the governments of both sides are taking a number of initiatives to boost economic cooperation between the two countries.

An intergovernmental organisation called International Centre for Promotion of Enterprises (ICPE), which seeks to promote bilateral trade between India and Slovenia, has been setup. The organisation conducts studies to explore business avenues that can benefit SMEs from both countries.

In recent times, the Indian and Slovenian governments have been deliberating on signing a Memorandum of Understanding which would serve as a joint platform to enhance research and development (R&D) in various areas of the manufacturing sector.

Additionally, initiatives are being taken to promote collaboration between Indian and Slovenian companies in the domains of tourism, education and information technology.

With such measures being implemented by the Indian and Slovenian governments, Indian SMEs can expect better business prospects and tie-ups with Slovenian firms in the near future.

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David Parks is a well known author and has written articles on SME Finance, B2B Portal, Business Trade Leads, suppliers, Manufactures and many other subjects.