Indian relations with Portugal

INDIA-PORTUGAL RELATIONS

Indo-Portuguese bilateral relations rest on an even keel, remain close and friendly and are free of any irritants. Diplomatic relations between India and Portugal were first established in 1949. Major differences emerged during our negotiations over Goa with the (dictatorial) regime of Salazar (1932-1974). This led to the closure of our Embassy in Lisbon on June 11, 1953. The Portuguese Embassy in Delhi was closed in August 1955. All diplomatic and consular links were finally severed on September 1, 1955.

The Portuguese-held territories of Goa, Daman & Diu were restored to India through military intervention (Operation Vijay) in December 1961. Through the sixties and up to 1974, there continued an increasingly strong movement in Portugal for democracy at home and decolonisation abroad. Finally, the carnation revolution of April 25, 1974 ended the dictatorial regime and ushered in a democratic process.

A treaty re-establishing diplomatic relations was signed in New Delhi on December 31, 1974. The Embassies of the two countries were re-opened – the Indian Embassy in Lisbon in June, 1975, and the Portuguese Embassy in New Delhi in July 1975. Portugal opened a Consulate General in Panajim in April 1994. We also have a Honorary Consul in Oporto since 1994.

Political Relations:

With the end of dictatorship, a democratic system of governance was initiated in Portugal. The democratic government, however, remained vulnerable and unstable till 1985 when the Social Democratic Party (PSD) gained an absolute majority in the elections, introducing an era of stability until 1995. There was a period of relative instability from 2002 to 2005 under PSD-led coalition Governments. In the last recent general elections held in February 2005, the Socialist Party (PS) has been elected with a clear majority and Jose Socrates sworn in as Prime Minister in March 2005. Jorge Sampaio (of the Socialist Party) was re-elected for a second term in January 2001. In the latest Presidential elections of January, 2006 Cavaco Silva (PSD) was elected President. Portugal is a founder member of the NATO and a member of the EU since 1986. It was one of the first countries to join the Euro in its first wave in January 1999. The switch over was swift
and complete on 28.2.2002. Portugal held the Presidency of the EU in the year 2000 and will hold it again in the second half of 2007.

Important Bilateral Treaties and Agreements:

During the prolonged period (1975-1987) of relative political and economic instability in Portugal immediately after the revolution, the Indo-Portuguese bilateral interactions remained at a low ebb. Nevertheless, a bilateral Agreement on Trade, Economic, Industrial and Technical Cooperation was signed in 1977. A Joint Committee established under this Agreement had its first meeting in November 1981. At the Second Meeting held in 1997, it was decided to bifurcate the scope of the 1977 agreement into two separate segments - one providing for economic and industrial cooperation (agreement signed at Lisbon in April 2000 during the visit of EAM) and the other providing for cooperation in Science & Technology (agreement signed at New Delhi in December 1998 during the visit of the Portuguese Minister for Science and Higher Education, Prof. Jose M. Gago). Another Agreement providing for Avoidance of Double Taxation was signed at Lisbon during the visit of Rashtrapatiji in September 1998. Both these agreements have since entered into force with the completion of ratification procedures.

A Cooperation Agreement was signed in January 1992, between FICCI and the Portuguese Institute for Foreign Trade and Investment (ICEP). A Joint Business Council established under this agreement met in 1993, 1995 and 1997. A Cooperation Agreement between Confederation of Indian Industry (CII) and the Portuguese Association of Industries (AIP) was signed in July 1995.

Two Agreements, viz., Bilateral Investment Promotion and Protection Agreement (BIPPA) and an Agreement setting up a Joint Working Group on Information Technology were signed during the PM’s visit in June 2000. They have since entered into force after completion of the related ratification procedures by the two countries.

The following agreements were signed during the visit of Portuguese President to India in January 2007:

(i) Cultural Exchange Programme (2007-1010)

(ii) Exchange Programme in the fields of Education, Language, Science, Technology and Higher Education (2007-2010)

(iii) Overarching Agreement in the field of Education, Science, Culture, Sports, Youth and Mass Media (2007-2010)

(iv) Extradition Treaty

Bilateral Visits :

High Level Visits From Portugal

• Mario Soares, Prime Minister, attended the funeral of Mrs. Gandhi, 1984
• Mario Soares, President, the Chief Guest at Republic Day 1992 (State Visit)
• Prof. Anibal Cavao Silva, President, visited India in January 2007 (State Visit)

From India

* R. Venkataraman, President, State Visit March-April 1990
* P.V Narasimha Rao, Prime Minister, transit visit, June 1992
* Shankar Dayal Sharma, President, transit halt, May 1995
* P.V. Narasimha Rao, Prime Minister, transit halt, October 1995
* K.R.Narayanan, President, State Visit, September 1998
* A.B. Vajpayee, Prime Minister, June 2000 (First India-EU and Bilateral Summit)

Visits of Foreign Ministers:

From Portugal

• Mario Soares, Foreign Minister, Dec. 1974 (Indo-Portuguese Treaty)
• Jaime Gama, Foreign Minister, Feb 6-10, 1997 (Bilateral – at the invitation of EAM)
• Prof. Joao Cravinho, MOS for Foreign Affairs and Cooperation (January 28-30) for the Satyagrah conference

From India

* Eduardo Faleiro, MOS(EA), July 1991 (Gold Ornaments – returned by Portugal)
* P.V Narasimha Rao, EAM, April 1984 (Indo-Portugal Cultural Agreement)
* Pranab Mukherjee, EAM, July 1995 (Protocol on FO level consultations)
* Jaswant Singh, EAM, April 2000 (Preparatory visit for the 1st India-EU Summit)

Other Visits:

From Portugal

• Antonio de Almeida Santos, President of the Portuguese National Assembly (Speaker, Dec. 15-22, 1998 (Led Portuguese Parliamentary delegation)
• Joao Bosco Mota Amaral, President of the Assembly of the Portuguese Republic (Speaker of the Portuguese Parliament), Jan. 2003 (Led a four-member delegation to the Golden Jubilee celebrations of Indian Parliament).
• Jose M. Gago, Portuguese Minister for Science and Technology, 3rd December 1998 (an agreement for Cooperation in Science and Technology was signed),

From India

• Murlimanohar Joshi visited Portugal on July 3, 2001 (two protocols providing for a programme of cooperation and joint research projects in Science and Technology and Ocean Science were signed)
• Manohar Joshi, Hon’ble Speaker, Lok Sabha visited Portugal, May 25-28, 2003 (celebration of Indian Parliament)
• K. Prathibha Bharathi, Hon’ble Speaker, AP Legislative Assembly, Oct.14-17, 2003 (On
  a post-conference study tour)
• T. N. Haokip, Hon’ble Speaker, Manipur Legislative Assembly, Sept.17-19, 2004 (On a study tour)
• Kumari Selja, Hon’ble MOS(IC) for Urban Employment & Poverty Alleviation visited Portugal, Sept. 17-20, 2004 (to meet Portuguese Minister of Cities)
• Jagdish Tytler, Minister of State for Overseas Indian Affairs, Oct. 07-10, 2004 (to meet with NRIs and publicise Pravasi Bharatiya Divas celebrations)
• Franciso Sardanha, Hon’ble Speaker of the Goa Legislative Assembly visited Portugal on a study tour from 17-18th September, 2005.
• Oscar Fernandes, Minister of State Independent Charge visited Portugal, March 8-10, 2006 to represent India at the Inauguration Ceremony of the Portuguese President Cavaco Silva.

Commercial and Economic Relations:

Indo-Portuguese bilateral trade, though small in volume, has been growing steadily over the years, and holds promising potential for further growth and diversification. The bilateral trade, grew from US $ 69 million in 1991 to US$ 289.52 million in ( Jan-Dec. 2005). The bilateral trade has been largely one sided, and in India's favour with India's exports constituting over 70% of the trade turnover.