Czech Republic–India relations

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Czech–Indian relations
Map indicating locations of Czech Republic and India

Czech Republic
India

Economic relations between India and Czech Republic date back to the Middle Ages. People in both countries have always been interested in learning more about the history, language and culture of the other country. During the years after India's independence, Czechoslovakia also played a role as a vital economic partner. Today, both India and Czech Republic have established close relations when it comes to trade, investment and tourism.

History

Calcutta as well.[1]
These consulates paved a way for people with similar professional and personal interests from both countries to come together and interact.

India has possessed trade relations with Czechoslovakia since before India's independence. Even in the 1930s,

defence and metallurgy. However, after the creation of the Czech Republic on January 1, 1993, trade declined due to the liquidation of some major state-owned corporations in the Czech Republic and the switch to payments being made in freely convertible currencies.[3]

Diplomatic relations between the two countries were first formally established on November 18, 1947, after which many former Indian presidents and prime ministers paid frequent visits to Czechoslovakia.

Vice President of India, Mohammad Hamid Ansari, visited the Czech Republic and a Social Security Agreement as well as an Agreement on Economic Cooperation between the two countries were signed.[3]

The following is a list of some of the important agreements signed between India and Czech Republic:[5]

  • 1966: Agreement on the use of nuclear energy for peaceful purposes
  • 1973: Agreement on scientific, technical and industrial cooperation
  • 1978: Agreement on cooperation in sea transportation
  • 1993: Trade Agreement between the Government of the Czech Republic and the Government of the Republic of India
  • 1998: Bilateral Investment Promotion and Protection Agreement (BIPPA)
  • 1999:
    Double Taxation Avoidance Agreement
    (DTAA)
  • 2003: Agreement on Defence Cooperation between the Government of the Czech Republic and the Government of the Republic of India
  • 2010: Agreement on Economic Cooperation between the Government of the Czech Republic and the Government of the Republic of India

Both India and Czech Republic are equally interested in being educated about the history and culture of the other country. Czech people are passionate about yoga, Ayurveda and Indian religious texts. Many universities in the Czech Republic have a long history of offering education about Indian culture, languages, literature and history. Similarly, in the Delhi University in India, students can learn Czech language and history, and are increasingly eager to visit Czech Republic to explore the architecture, history and beauty.[4]

Trade and Investment

For many decades, Czechoslovakia was one of India's main trading partners among other the East-European countries. Many Czech companies have contributed in developing India's industrial future by delivering the necessary equipment required for the

Bata and Zetor. The science and technology sectors are some of the most favourable areas of future cooperation between India and Czech Republic.[4] Sectors such as petrochemicals, food processing and civil aviation are also reported to be areas where both countries can benefit from each other.[4]

From 2012 onwards,

Tata Tea have also invested in sectors of the Czech Republic such as IT, vehicles, textile, and tea. Inspired by the investment activities of companies such as Škoda Auto and Tatra
in India, a number of other prospective Czech companies are considering investment projects in India in sectors like transportation, power, defence and machinery.

An important sector of bilateral trade cooperation between the two countries is the automotive industry.

net sales.[9]

Czech Investment in India

The Indian market has established itself as a key destination for many Czech brands and companies. Czech companies work to establish themselves in the Indian market by offering high-quality products to local consumers. Czech companies are mainly emerging as investors in the fields of energy, finance, engineering and infrastructure.

The following is a list of some important Czech companies that have invested in India:[4]

  • Skoda Auto
    : A premium automobile manufacturer in India.
  • Skoda Power
    : The company supplies a large number of power blocks to India.
  • Bata
    Limited: Leading footwear manufacturer
  • Vítkovice Machinery Group: A leading industrial group
  • ZKL Bearings CZ: Produces railway bearings
  • Bonatrans: Production of railway and metro wheels
  • Linet: Production of hospital beds and mattresses.
  • FANS: Production of cooling towers
  • Tatra: Manufactures trucks for defence purposes.

Indian Investment in Czech Republic

Many Indian companies, too, have established themselves in the Czech Republic due to the skilled Czech labour and comparatively low wages.

The following is a list of some important Indian companies that have invested in Czech Republic:[4]

  • Infosys: Established an IT facility in Brno
  • ArcelorMittal: Investment in steel plants in Czech Republic
  • Ashok Leyland (Hinduja Group): Production of trucks
  • Alok Industries: Manufactures textile material.
  • Motherson Sumi Systems Limited
    : Leading automative manufacturer
  • Fedders Electric and Engineering: Produces industrial heat exchangers and industrial coils.

Tourism

Tourism between India and Czech Republic has also been considerably increasing in the past few years. Over the last decade, many of Prague's historical sites have served as shooting locations for a number of big-budget

Bollywood films. This has played a role in generating a great amount of interest in the Czech Republic among the people in India and, thus, led to an increase in the number of Indian tourists choosing to travel to Prague. Over the last three years, the number of tourists in the Czech Republic from India has increases to 150 per cent.[10] In 2017, the Czech Republic received 85,680 Indian tourists and it is expecting to receive more than 100,000 tourists from India by the year 2020.[10]

Future Relations

On October 22, 2018, and October 23, 2018, the eleventh session of India – Czech Republic Joint Commission on Economic Cooperation (JCEC) took place.

Czech government shared that it considers India among the top twelve priority countries when it comes to the improvement of mutual economic, business and investment relationships.[12]
Furthermore, it was stated that many Czech companies would be interested in cooperating with companies in India.

Resident diplomatic missions
  • Embassy of the Czech Republic in New Delhi
    Embassy of the Czech Republic in New Delhi
  • Embassy of India in Prague
    Embassy of India in Prague

See also

References

  1. ^ a b Mea.Gov.In, 2018. https://www.mea.gov.in/Portal/ForeignRelation/Czech_Republic_Dec_2016.pdf
  2. ^ a b c "Embassy of India, Prague, Czech Republic : Commercial and Economical Relations". www.eoiprague.gov.in. Retrieved 2023-08-01.
  3. ^ a b c Imcnet.Org, 2018, http://www.imcnet.org/cms/public/content/ertf_thoughtpaper/3.%20India-%20Czech%20Republic%20Trade%20Relation.pdf Archived 2018-12-04 at the Wayback Machine
  4. ^ a b c d e f g Mzv.Cz, 2018, https://www.mzv.cz/newdelhi/en/bilateral_relation/the_czech_republic_india.html
  5. ^ Santiaco.cz - tvorba WWW stranek, citaty. "History Of Relations | Czech-Indian Chamber Of Commerce". Czechindia.Com, 2018, http://www.czechindia.com/en/history-of-relations Archived 2016-10-06 at the Wayback Machine
  6. ^ Dealers.Skoda-Auto.Com, 2018, http://dealers.skoda-auto.com/663/en-IN#DLZ=5&DLX=19.6507597818&DLY=85.0080482063
  7. ^ Roy, Nabanita Singha (2018-01-05). "Skoda India sales growth at 30% for 2017". RushLane. Retrieved 2023-08-01.
  8. ISSN 0013-0389
    . Retrieved 2023-08-01.
  9. ^ a b "Bata India likely to turn largest market for parent company in 2018 - ET BrandEquity". ETBrandEquity.com. Retrieved 2023-08-01.
  10. ^ a b "Czech Republic aims to receive over one lakh Indian tourists by 2019-20". www.thehindubusinessline.com. 2018-10-08. Retrieved 2023-08-01.
  11. ^ a b "Embassy of India, Prague, Czech Republic : News". www.eoiprague.gov.in. Retrieved 2023-08-01.
  12. ^ a b c "India, Czech Republic Agree To Boost Trade Ties". Smetimes.In, 2018, http://www.smetimes.in/smetimes/news/top-stories/2018/Oct/24/india-czech40927.html
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