Moldova is wooing Indian investors in textiles, agriculture and a few other sectors as it plans to open an embassy in India in 2019. Moldova is interested in an economic and trade agreement and a foreign investment promotion and protection agreement with India.

A visa agreement is also needed as Indians need an invitation from Moldova to visit the country now. If a company invests more than a million dollars in a free economic zone in Moldova, it does not have to pay taxes for three years. In September, a delegation of textile business representatives will visit India to explore cooperation avenues.

As manufacturing moves to lower cost countries, Moldova remains an attractive proposition for investment in a sector which already accounts for 1.5 per cent of general GDP and 30 per cent of manufacturing GDP. The textile/apparel cluster employs over 21,000 workers and has become one of the leading exporting sectors in the country.

The country’s proximity to the EU is a key element among its strategic advantages as a supplier of textiles and apparel to consumer markets. Moldova produces knitted and woven apparel, lingerie and nightwear, protective clothing and carpets. More than 250 enterprises are active in the sector.