New Delhi, Aug 2 - India Inc. is opposed to protectionism practised by the European Union (EU) by way of agriculture subsidies and non-tariff barriers on services exports and faces adverse conditions in the European market, especially the pharma and IT sectors, a survey by an industry body has revealed.

The Federation of Indian Chambers of Commerce and Industry (Ficci) survey on India-EU Trade Relations reveals that Indian exporters face the adverse impact of the huge amount of subsidies enjoyed by EU farmers through free seeds and fertilizers and a freight subsidy to producers.

In addition, exporters face cumbersome quality testing which increases the cost for Indian companies. In particular, many mid-sized India pharma companies have been severely hit due to the recent seizure of shipments at transit ports located in the EU, a Ficci release noted.

The survey respondents felt that the main impediment in the expansion of services to the EU were visa and consular issues, and non-clarity of taxation and cross-border transaction laws as applicable to Indian service providers.

In the IT sector, companies face difficulties in obtaining work permits for their professionals.