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 (Yr. 2015)
- Industry production growth rates 5% (Yr. 2015)
- Major Industries are motor vehicles, metallurgy, machinery & equipment & glass
- The two countries 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.
In August 2015, Czech GDP growth was 4,4%, making the Czech economy the highest growing in Europe. On 9 November 2015, unemployment in the Czech Republic was at 5.9%, the lowest number since February 2009. In September 2016, the unemployment was at 4.0%.
In 2016, for first time since 1995, Czech Republic had budget surplus 61 billion CZK, especially because of Eurofunds and better tax collecting. Largest surplus in history of independent Czech Republic.
Trade Relations between India and the Czech Republic
India was one of the first countries that recognized the establishment of the independent Czech Republic in 1993. High level visits have been maintained after the Czech Republic came into existence after bifurcation of Czechoslovakia and subsequently influenced the strong condemnation. The two countries share common global issues and also follow similar approaches to deal with them, which makes them even closer.
The Czech Republic, an industrial nation known for its high quality products and services, understands India was on the right path with its ‘Make in India’ campaign and would support its cause. The other initiative ‘Clean India’ was something Czech Republic could associate well with as the country had made substantial progress in this area.
Both countries have continued efforts for strengthening economic relations through frequent exchange of trade and business delegations. Indian companies have invested in Czech Republic in sectors like IT, Vehicles, Tea, Textile, Pharmaceuticals, auto-components. Indian companies like Infosys, Ashok Leyland, Tata Tea, Alok Industries, Spentex Industries, Motherson Sumi Systems Ltd, Glenmark Pharmaceuticls,Lloyd Electric and Engineering Ltd, PMP Components. have made investments in Czech Republic. The Major sector of bilateral cooperation is the automotive industry. Skoda Auto is doing well in India with its productions of Skoda cars in India. Another Czech company Tatra produces Trucks, mainly for the defence forces. The symbol of the success of Czech entrepreneurs in the Indian market was represented by Bata factories, which were built in Batanagar near Kolkata and Batapur with sales network across the whole country.
Indo-Czech Bilateral Trade
|VALUE IN MILLION USD||World||%age change||India||%age change|
|Yr. 2013||Yr. 2014||Yr. 2015||Yr. 2013||Yr. 2014||Yr. 2015|
|Imports of Engineering goods||79502.9||87988.3||81521.1||-7.35||275.5||237.7||266.0||11.8|
|Exports of Engineering goods||108095.6||117279.3||104884.3||-10.56||403.7||432.6||412.9||-4.56|