Central Europe is also an important region for India economically. India’s total bilateral trade with Central European countries is $46.4 billion. But these figures do not tell the entire story as these are shored up by India’s healthy trade relations with only few of these countries. With most others, India’s trade is minuscule.
In last 10 years, India’s exports to Central Europe increased to $ 10.87 billion with a notable growth more than 100 per cent. Following figure shows growing trend of India’s exports to Central Europe.
The Czech Republic : Key Features
- Located in Central Europe and Landlocked by Germany, Poland, Slovakia, Austria – gateway to Central and Eastern Europe;
- Stable & prosperous market economy;
- Industry contributes 38.2% of the GDP (Year 2015);
- Industry production growth rates 5% (Year 2015);
- Major Industries are motor vehicles, metallurgy, machinery & equipment & glass;
- The auto industry is the largest single industry and, together with its upstream suppliers, accounts for nearly 24% of Czech manufacturing. The majority of which is exported to the world;
- The India and The Czech Republic enjoy Double Taxation Avoidance Agreement, which was signed in October 1998.
Economy of The Czech Republic
The Czech Republic has developed an advanced social market economy and social policies that support a high-income welfare state.
As of 2016, the Czech GDP per capita at purchasing power parity is $32,622 and $18,020 at nominal value. The Czech Republic is participating in the European Single Market of the European Union and is therefore a part of the economy of the European Union. Its largest trading partner for both export and import is Germany. As of July 2016, the unemployment rate in The Czech Republic was the lowest in the EU at 4.0%, and the poverty rate is the second lowest of OECD members only behind Denmark.
The principal industries are engineering and machine-building, iron and steel production, metalworking, chemical production, electronics, transportation equipment, textiles, glass, brewing, ceramics, and pharmaceuticals. Its main agricultural products are sugar beets, fodder roots, potatoes, wheat, and hops.
Bilateral Relations between India & The Czech Republic
India’s overall exports to The Czech Republic consistently maintained a growing trend and reached to US$ 448 million in 2015 with a growth more than 350 per cent in last 10 years. Following figure depicts growing trend of India’s exports to The Czech Republic.
Major Items of Indian Exports: Iron and Steel, Articles of apparel and clothing accessories, Textile yarn, fabrics, made-up articles, Electrical machinery, apparatus and appliances, Power-generating machinery and equipment, Medical and pharmaceutical products, Miscellaneous manufactured articles, footwear, General industrial machinery and equipment, Organic chemicals.
Major Items of Indian Imports: Boilers and Electrical Machineries, Machinery specialized for particular industries, General industrial machinery and equipment, Roads vehicles, Organic chemicals, Rubber materials, Telecommunications and sound-recording equipment.