About Us Economic & Commercial Relations

Embassy of India
Prague
***

Economic and Commercial  relations between India and the Czech Republic

1. Trade ties between India and the Czech Republic, formerly Czechoslovakia, preceded India's independence. Czechoslovakia established its consulate in Mumbai in October 1920 and in Calcutta in December 1929.

2. The famous Czech shoe company Bata, which started its operations in Batanagar (West Bengal) in the 1930s, is one of the most popular Czech brands in India. While škoda is currently a well-known Czech brand in the automotive industry, Czech Jawa and Yezdi motorcycles were also popular in the 1960s. Due to this popularity, Indian car giants Mahindra and Mahindra have successfully revived the Jawa brand. Jawa motorcycles made in India are exported to the Czech Republic.

3. During the communist era, Czech companies launched a number of important industrial projects in India in the fields of energy, metallurgy, machine tools and transport; by 1990, they had approximately 60 large projects in India. Some of these Czech companies continue to work on projects in the heavy engineering sector in India.

4. The Czech policy of trade diversification outside the EU has given new impetus to Indo-Czech bilateral trade and economic relations. New mechanisms and diversified interaction thereafter resulted in revival of bilateral trade to more than US $ 2.114 billion in 2021, from just US $ 86 million in 1993 as per Czech statistics.

Main Indian products exported to the Czech Republic:

  1. Medicaments,n.e.s.,put up in measured doses,in forms for retail sale
  2. Static converters (e.g., rectifiers)
  3. Other heterocyclic compounds with nitrogen hetero-atom(s) only
  4. Heterocyclic compounds, n.e.s.
  5. Brakes and servo-brakes and parts thereof.

Main Czech products imported to India:

  1. Reciprocating piston engines of a cylinder capacity not exc.1,000 cc
  2. Reciprocating positive displacement pumps, n.e.s.
  3. Taps, cocks, valves and similar appliances, n.e.s.
  4. Parts of railway or tramway locomotives or rolling-stock
  5. Fuel, lubricating or cooling medium pumps.

5. Institutional cooperation

a) Joint Commission on Economic Cooperation: The first meeting of the Indo-Czech Joint Commission on Economic Cooperation (JCEC) took place in New Delhi in November 2010. The JCEC has been meeting regularly since then, with the last meeting taking place in October 2018 in Prague.

b) JWG for Heavy Engineering: During the 9th meeting of the Joint Economic Commission in 2012, both parties agreed to reactivate the JWG Joint Working Group on Heavy Engineering. The first meeting of the JWG took place in Mumbai on 15 March 2013 and the JWG has met regularly since then. The 6th JWG Heavy Engineering Meeting was held in Brno in October 2019 as part of the International Engineering Fair in Brno.

Bilateral investments:

6. Almost 7% of Czech investments outside Europe go to India. About 30 Czech companies have invested in India, including škoda Auto, škoda Power, Bonatrans, Home Credit, etc. in various sectors such as transport, energy, automotive and finance. In 2018, škoda Auto pledged to invest $ 1 billion in its India India 2.0 project, and in 2020 launched its new low-cost SUV, completely manufactured in India, on the Indian market. šKODA KUSHAQ is the first production car in the INDIA 2.0 project. As part of the project, šKODA AUTO, the Volkswagen Group, is investing one billion euros in India.

7. Indian companies have invested in the Czech Republic in sectors such as IT, vehicles, tea, textiles, pharmaceuticals and automotive components. Major Indian companies that have invested in the Czech Republic include Infosys, LEEL, Cognizant, Samvardhana, Varroc Excellence, Pricol, CLC, KCI, Dina-Hitex, Glenmark Pharmaceuticals, Alok Industries / Mileta Hořice a.s., APAG.

8. (i) Main milestones of bilateral economic relations: Annex I

(ii) Bilateral economic cooperation agreements: Annex II

(iii) List of major Czech companies in India: Annex III

(iv) List of major Indian companies in the Czech Republic: Annex IV

9. Commercial Representative

Mr. Abhijit Chakraborty
Counselor
Tel: +420 257 533 490, +420 257 107 019

April 2022