Edited excepts
1. India-Portugal trade ties are witnessing a surge over the last few years. What are your thoughts and which areas two nations can focus in future ?
India’s ambitious industrial agenda, including initiatives such as Make in India and Production‑Linked Incentive schemes, naturally creates opportunities for Portuguese companies to deepen their manufacturing presence in the country.
We already have important Portuguese investors in sectors such as automotive components, energy equipment, engineering and industrial machinery operating in India. In a large and diverse market like India, success tends to depend on local partnerships, production or transformation, and a careful choice of states with strong business environments, which we see in regions such as Maharashtra, Tamil Nadu, Gujarat, Karnataka and others. I therefore expect Portuguese firms to expand their industrial footprint through joint ventures, technology licensing and local production platforms that combine Portuguese know‑how with Indian scale.
2. Indian investments in Portugal are estimated to be in the range of up to US$ 475 million. Is Portugal govt providing any incentive to prospective Indian investors?
Portugal currently offers a range of incentives designed to attract foreign investment into the country. The existing incentive framework includes financial and tax incentives aimed at export-oriented and innovative productive investment projects aimed at domestic and international investors, including from India. Financial and tax incentives may also be available to research & development activities. These schemes place a strong emphasis on fostering innovation, scientific research and research collaborations, thereby promoting knowledge exchange and technology transfer. Employment grants are also available through internship grants, financial support and exemption of social security contributions.
In addition, Portugal has introduced the Tax incentive for scientific research & innovation (IFICI) regime for expatriates. The primary objective of the IFICI is to attract qualified employees and encourage the establishment of companies in specific sectors in Portugal, with the aim of developing innovation and scientific research activities within the country.
3. Portugal ranks 52nd in Foreign Direct Investment (FDI) into India, with total FDI inflows amounting to US$ 126.11 million as of December 2024. Potential areas for Portuguese companies in India include Infrastructure & Construction, Renewable Energy (especially solar and wind power), Footwear, Textiles, Tourism & Hospitality, Defence & Aerospace, IT & Electronics, Water & Waste Management, Startups, Agriculture & Food Processing. What are your thoughts on this?
Being 52nd is the evidence that the Portugal–India investment trade and investment relation is still underdeveloped compared with Portugal’s potential capabilities and India’s scale and innovation technologies.There are different sectors that represents an opportunity to Portuguese companies in India as well as to Indian companies in Portugal.
Portugal has strong and internationally recognized sectors that are consistent with India’s current industrial priorities, as construction and infrastructure, renewable energy; manufacturing value chains; digital/IT; startup’s; defence/aerospace; circular economy and smart water; tourism/hospitality management; agriculture and food processing.
Infrastructure & Construction, Renewable Energy:
Key sectors include infrastructure and construction, where Portuguese companies have well‑recognized expertise in engineering, mobility, and sustainable urban solutions; renewable energy, particularly solar and wind, where there are clear opportunities for collaboration in the context of the energy transition; as well as water and waste management, which are crucial for addressing environmental and urban challenges.
The consolidation of renewable energy as the primary source of electricity in Portugal represents a profound change in the operation of the power generation system, with direct impacts on security of supply, the energy trade balance and economic competitiveness. The reduction in dependence on imported fossil fuels has become particularly relevant in the context of geopolitical instability and volatility in international energy markets.
At the same time, the maturity achieved by the Portuguese electricity system translates into a greater capacity to respond to fluctuations in production and consumption, requiring increasingly sophisticated solutions in terms of network management, energy storage, and the digitalisation of the energy sector.
Green hydrogen emerges as a complementary solution to electrical storage, enabling surplus renewable electricity to be converted into chemical energy suitable for long-term storage and use across multiple sectors.
In Portugal, hydrogen development is aligned with the national energy and climate strategy, benefiting from the high availability of renewable electricity and existing technical capacity, notably within industrial clusters supported by public investment and internationalisation policies.
Water & Waste Management
The water cluster in Portugal, embodied through drinking water supply and treatment services for the population and urban wastewater sanitation, plays a fundamental role in the country’s development. It is a sector whose international activity represents a very significant share of its overall operations, with a presence in many geographical markets.
Across the country and considering the opportunities created by recent conditions that have driven growth in the Water and Environment sector and its subsectors over the past decade, a broad range of Portuguese technological and innovative companies has emerged. Their potential for internationalization can be further strengthened, notably through multilateral mechanisms, decarbonization initiatives, the promotion of the circular economy, and the development of alternative materials and technologies.
Regarding waste, Portugal remains far from meeting its targets; however, there are Portuguese companies that transform waste into new resources, illustrating the potential of the circular economy, particularly in protecting the ocean.
From construction debris to plastic collected from beaches or waste from quarries, materials that were once discarded are now being transformed by Portuguese companies, generating new products and new business opportunities.
Agriculture & Food Processing
In the agri-food sector, India represents a market with high growth potential, driven by the expansion of the middle class, urbanization, and growing demand for premium and differentiated food products.
Portugal can position itself primarily in value-added segments, such as wines, olive oils, canned foods, gourmet products, and agri-food technology, prioritizing a gradual approach based on solid local partnerships.
Despite regulatory challenges and strong market competition, we believe there are significant opportunities to strengthen Portugal’s presence by promoting the country as a source of quality, authenticity, and food innovation.
Footwear
India is currently one of the world’s fastest‑growing economies, with an expanding middle class, strong industrialization, and significant investment. In this context, the situation in the footwear and textile sectors is more complex. India is a very strong global competitor due to its low production costs and large industrial scale.
However, Portugal can differentiate itself through quality, design, sustainability, and technological innovation. Rather than competing on price, Portuguese companies focus on premium niches and strategic partnerships.
The Portuguese footwear industry is internationally recognized for its strategic positioning oriented toward product differentiation and higher added value, with clear potential in the premium segment within the Indian market itself. India’s rapidly growing middle and upper classes are increasing demand for international brands and higher‑quality products, allowing Portuguese footwear to position itself as a premium, sustainable European product.
In addition, the Portuguese footwear sector already has strong export capacity and a very positive international image. Thus, as in the textile sector, the future of the Portuguese footwear industry lies less in price competition and more in consolidation as a premium, sustainable, and technologically advanced producer.
Textiles
The textile and fashion industries are already an important pillar of Portugal’s export economy and represent a very promising area for stronger collaboration with India. Portugal has built an international reputation in premium textiles, fashion design, technical fabrics and sustainable production, while India remains one of the world’s largest and most dynamic textile markets, with impressive industrial scale and manufacturing capabilities. The complementarities between both countries create clear opportunities for partnerships in sourcing, production, innovation, and access to international markets.
In this context, AICEP has played an active role in supporting Portuguese textile companies in their international expansion. Portuguese companies are increasingly focused on added-value segments such as sustainable fashion, performance textiles, smart materials, and nearshoring solutions for European brands. We believe that stronger business connections between Portuguese and Indian companies can generate mutual benefits, combining Portugal’s innovation, quality and flexibility with India’s scale, talent, and industrial ecosystem.
IT & Electronics
In the IT & Electronics sector, India offers strong growth opportunities for Portuguese companies due to its expanding digital economy, large engineering talent pool, and government-backed manufacturing incentives. Portugal’s strengths in software engineering, cybersecurity, telecommunications, electronics manufacturing services (EMS), smart mobility, and digital infrastructure align well with India’s current priorities under initiatives such as “Digital India,” “Make in India,” and semiconductor/electronics manufacturing programs.
Key opportunities for Portuguese companies include:
- IT Services & Digital Transformation: Indian enterprises and public institutions are investing heavily in AI, cloud computing, cybersecurity, fintech, smart cities, and digital public infrastructure. Portuguese firms with expertise in software development, SaaS platforms, cybersecurity, and digital transformation can partner with Indian companies or establish technology centers in India. Portugal’s ICT ecosystem has become increasingly internationalized, with strong innovation capabilities and export-oriented technology firms.
- Electronics Manufacturing & Components: India is rapidly expanding its electronics manufacturing ecosystem, supported by Production Linked Incentive (PLI) schemes and government incentives for electronic components, telecom equipment, and semiconductor supply chains. This creates opportunities for Portuguese companies in industrial electronics, embedded systems, IoT devices, PCB assembly, automation systems, and EMS partnerships.
- Telecommunications & 5G Infrastructure: Portugal’s experience in telecom technologies, digital connectivity, and smart infrastructure can support India’s fast-growing 5G rollout, data center expansion, and fiber connectivity projects. Cooperation opportunities exist in network technologies, edge computing, cloud infrastructure, and digital services.
- Data Centers & AI Infrastructure: India’s growing demand for AI computing, cloud services, and digital platforms is accelerating investment in hyperscale data centers and green digital infrastructure. Portuguese companies involved in energy-efficient data infrastructure, software optimization, and AI applications can explore partnerships and joint ventures with Indian technology firms.
- Startup & Innovation Collaboration: Portugal’s startup ecosystem and India’s scale in software engineering create opportunities for innovation partnerships, venture investment, R&D collaboration, and technology exchange in areas such as AI, mobility tech, healthtech, agritech, and fintech.
- Semiconductors & Advanced Electronics: India is investing aggressively in semiconductor fabrication, packaging, and component manufacturing to reduce import dependence and strengthen supply chains. Portuguese firms with specialized engineering capabilities, nanotechnology expertise, industrial automation, or advanced materials could participate in India’s emerging semiconductor ecosystem.
Overall, the complementarities between Portugal’s innovation-driven ICT sector and India’s scale, manufacturing ambitions, and digital transformation agenda provide significant scope for bilateral cooperation, investment, and technology partnerships in IT and electronics.
Startups
Portugal and India have a significant opportunity to deepen their economic relationship, particularly in innovation and startups. India is today one of the world’s leading technology and entrepreneurial hubs, with extraordinary scale, talent, and engineering capabilities, while Portugal has positioned itself as an attractive gateway to Europe for international startups and technology companies. Portugal offers a highly connected innovation ecosystem, strong universities and R&D Centers, a growing venture capital landscape and an increasingly international startup community, making it a natural platform for Indian startups looking to expand into European markets.
AICEP – Portuguese Trade & Investment Agency and Startup Portugal (the Portuguese startup ecosystem aggregator) have been actively supporting the internationalization of Portuguese startups and promoting Portugal globally as a competitive innovation hub for foreign investment and technology companies. In recent years, we have worked closely with startups, incubators, venture capital investors and international partners to strengthen Portugal’s position within the global innovation ecosystem. We see strong potential for greater collaboration between Portugal and India in areas such as artificial intelligence, fintech, health tech, clean energy, smart cities, cybersecurity, and digital transformation, while also encouraging stronger connections between startups, accelerators, corporates and investment funds from both countries.
Defence & Aerospace
In the Aerospace & Defence sector, India represents a particularly strategic opportunity for Portuguese companies, especially in areas such as autonomous systems, drones, dual-use technologies, naval systems, advanced engineering, and aerospace innovation. As India accelerates its defence modernization and promotes local industrial partnerships under initiatives such as “Make in India”, Portuguese firms can position themselves as agile European technology partners offering specialized capabilities, innovation, and NATO-aligned expertise. The growing focus on Autonomous Systems, surveillance, smart defence systems, and aerospace technologies creates strong potential for bilateral collaboration, joint ventures, R&D partnerships, and industrial cooperation between Portugal and India.
The strategic sectors for Foreign Direct Investment in Portugal include aerospace and defence, mobility, cleantech, advanced manufacturing, tech & digital and life sciences.
These sectors are considered key drivers of economic growth, innovation, sustainability, and international competitiveness, and therefore benefit from targeted government support and investment promotion initiatives.
In addition, investments in these sectors have the potential to complement and strengthen existing value chains in Portugal by enhancing industrial capabilities, promoting technological development, fostering local supplier networks, and creating opportunities for knowledge transfer and integration across related industries.
4. What are your views on India-EU FTA on boosting India-EU trade and India-Portugal trade ties?
Let me start by highlighting the fact that last year (2025) marked the 50th anniversary of the re-establishment of diplomatic relations with India, an important milestone marking a long-standing relationship of formal and friendly ties between both countries.
Over the next decade, I expect the Portugal–India relationship to deepen significantly, building on historic maritime and cultural ties but increasingly driven by economic complementarity. India is now among the world’s four largest economies and is projected to move into third place in the coming years, while Portugal is firmly integrated into the European Union and the Portuguese‑speaking world, which creates natural synergies in trade, investment and connectivity.