India's trade with the European Union has increased manifold over the past decade especially in the food and drinks sector, the statistical office of the European Commission has said.

Ahead of the Indo-European summit scheduled on November 30 in New Delhi, the Commission yesterday said the statistics underscore the growing importance of the emerging Indian economy in the world food trade and the overall trade with Europe, which has grown by 80 per cent since 2000.

Products produced in India often come at a lower cost, piling pressure on European companies to cut their prices thereby increasing competition, the report said. At the same time, Indian consumers have increasingly adopted Westernised diet trends, therefore fuelling the need for trade.

Figures released by Euromonitor showed that the value of the ready-to-eat meals market in India has grown from $3.7 million in 2002 to $22.2 million at present. 

Europe exported euro 57 million worth of food and drink products to India in 2000. This increased five-fold to euro 263 million in 2006. Although imports from India have grown at a lesser pace, from euro 1,207 million to euro 1471 million over the six-year period.

Germany is the largest exporter, making up 26 per cent of the total exports to India, with a value of euro 6.3 billion. It was followed by Belgium with 19 per cent, and the United Kingdom, with 16 per cent.