About Us India-Czech Economic Relations

Embassy of India

Prague

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Commercial Representative

The Commercial Representative is responsible for the Economic & Commercial cooperation between India and Czech Republic. Commercial Representative facilitates contact with various Government Ministries/Departments and also provides information about the trade and economic data, information about Indian & Czech companies, and organizes events such as seminars, workshop, business round-table, etc. The Commercial Representative works under the supervision of Ambassador and is a part of the Commerce Wing of the Embassy of India, Prague.

The present Commercial Representative is:

Shri D C D Dass +420 257 533 562, +420 257 107 013

Second Secretary(Eco) & HOC hoc.prague@mea.gov.in

India-Czech Republic Economic Relations

Background:

India’s trade links with Czech Republic, formerly Czechoslovakia, predate our independence. Czechoslovakia established its Consulate in Bombay (October 1920) and in Kolkata (December 1929). The famous Czech shoe company Bata Works had 120 Czechoslovak nationals employed in Batanagar in the 1930s. While Skoda has a marked presence in Indian market, recently Jawa brand of motorcycles from Czech has been successfully revived by ‘Classic Legends’, a sister company of Mahindra & Mahindra. Czech companies established a number of major industrial projects in India in the fields of energy, metallurgy, machine tools and transportation and had about 60 major projects in India before 1990. A list of landmarks in bilateral trade and economic relations is detailed in Annexure 1

With the formation of the Czech Republic from January 1, 1993, our trade with the country was switched to freely convertible currencies. The change over and the transformation in economic policies and practices both in India and the Czech Republic resulted in initial slowing down of trade and economic activities between the two countries. New mechanisms and diversified interaction thereafter have resulted in revival of bilateral trade to around USD 1.5 Billion in 2019 from just USD 86 million in 1993.

In 2013, for the first time in our long history of economic relations, the balance of bilateral trade tilted in India’s favour. Recently, our trade and economic relations remained on an upswing with bilateral trade registering a 7.3 percent growth in 2018 (to US$ 1574 mi) over 2017, with the balance in India’s favour, as per Czech statistics. The bilateral trade has almost remained at par y-o-y in 2019 & 2020 (inspite of pandemic related slowdown). This recent trend in the bilateral trade is as follows:

INDIA – CZECH BILATERAL TRADE FIGURES

Year

Czech Imports from India

(approx. in mil. USD)

Czech Exports to India

(approx. in mil. USD)

Turnover

(approx. in mil. USD)





2015

675

546

1 221

2016

732

624

1 356

2017

738

667

1 405

2018

864

708

1 572

2019

918

649

1 567

2019(Jan-Oct)

788

540

1 328

2020(Jan-Oct)

818

423

1 241

Agreements relevant to bilteral economic cooperation: Annexure II

Cooperation mechanisms

a) Joint Commission on Economic Cooperation : The first meeting of Indo Czech Joint Commission on Economic Cooperation (JCEC) took place in New Delhi in November 2010. Though it was the first meeting of the Joint Commission, it was called the 8th session taking into account earlier 7 meetings held as Joint Economic Committee meetings.The JCEC has been meeting regularly since then:

Session of JCEC

Held on

Held at

Co-chaired by

The Ninth session of JCEC

September 7-11, 2012

Prague and Brno

Ministerial Level

The tenth session of JCEC

January 27-28, 2015

New Delhi

Smt. Nirmala Sitharaman, Commerce & Industry Minister (CIM)

The last, 11th Session of JCEC

October 22-23 2018

Prague

Shri C.R. Chaudhary, MoS (Commerce & Industry)

The 12th session of JCEC

Was to be held in 2020, however stands postponed due to pandemic situation.

Delhi


b) JWG on Heavy Engineering: During the 9th session of the Joint Economic Commission in 2012, both sides agreed to reactivate the Joint Working Group as JWG on Heavy Engineering. The first meeting of JWG was held in Mumbai on March 15, 2013 and JWG has been meeting regularly since then.The 6th JWG on Heavy Engineering was held in Brno in October, 2019 on the sidelines of the MSV International Engineering Fair in Brno.

c) India-Central Europe Business Forum: The first edition of India–Central Europe Business Forum (ICEBF) was organized by FICCI in March 2014 under the aegis of MEA. Thereafter ICEBF has been held at regular intervals; in Bengaluru during October 3-5, 2015, in New Delhi from December 8-10, 2016 in the name of India –Europe 29 Business Forum. The last India-Europe 29 Business Forum was held in Delhi from 21-22 November, 2019.

Bilateral Trade/ Investments Scenario:
  • India’s main products of Export to Czech Republic are Garments and textiles, Pharmaceutical products, Iron and Steel products, electronic instruments, auto components, chemicals, power equipment, footwear etc.

  • India’s main products of Imports from Czech Republic are auto components, textile and leather machines, machines for rubber and plastic industry, machine-tools, food production equipment, ICT equipment, furniture, pumps, electronic items etc.

  • Almost 7% of Czech investments outside Europe came to India and India gained 1/10th of Czech investments. Around 30 Czech companies have invested in India including Skoda Auto, Skoda Power, Bonatrans, Home Credit etc. in transportation, power, automotive and financing sectors. In 2018, Skoda Auto has committed a US$ 1 billion investment into its project India 2.0 and is launching its new low cost SUV in the Indian market in 2020, made wholly in India.Detailed list of major Czech companies in India is available at the link Annexure III

  • Indian companies have invested in the Czech Republic in sectors such as IT, vehicles, tea, textile, pharmaceutical and auto-components. Major Indian companies which have invested in the Czech Republic include Infosys, LEEL, Tata Global Beverages, Cognizant, Samvardhana Motherson, Varroc Excellence, Pricol, CLC, KCI, Dina-Hitex, Glenmark Pharmaceuticals, Alok Industries/Mileta Horice a.s., APAG. Detailed list of major Indian companies in the Czech Republic is available at the link Annexure IV

 

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January, 2021