Economic Relations

The former Czechoslovakia was one of India's major trade partners in Eastern Europe. India's volume of trade with Czechoslovakia in 1991-92 was higher than any other country in the region.

According to latest available figures, India's trade turnover with the Slovak Republic has been as follows (in million US$):

The drop in bilateral trade in 1993 was largely due to the confusion arising from Czechoslovakia's split into two independent countries, the termination of the Rupee-payment arrangements, and the switchover to hard currency trade. Bilateral trade shifted from the earlier system of balanced trade in non-convertible Indian Rupees to payments in convertible currency from 1st January 1993, for which a new trade and payments agreement was signed with Slovakia in May 1993.

Major items of trade are as follows:

From India Agricultural commodities (oil meals, tobacco, potatoes, coconuts, coffee, tea, rice), iron, chemicals, cotton yarn, textiles and manufactures including garments and carpets, handicrafts, toys, leather and manufactures, mechanical and electrical tools, agricultural machinery and spare parts, moped parts, etc.

From Slovakia Chemicals, pharmaceuticals, plastic materials, polymers, artificial resins, metal ores and metal scrap, yarn, steel sheets, steel bridge parts, boilers, generators, textile machinery, machine tools, rollings, electrical synchronised motors and tools, TV screens, trucks and tractors, defence equipment.

(Sources: Slovak Ministry of Economy, Slovak Statistical Office, National Bank of Slovakia)

Indo-Slovak Joint Committee was established in 1994, during the visit of the Slovak PM to India, and held its first meeting in Bratislava in May 1995. The second session was held in New Delhi in December, 1996, and identified several areas for enhancement of bilateral co-operation including railways, engineering and construction, electronics, telecommunications, banking, tourism, oil and gas exploration, mining, the steel industry, production of chemicals and fertilisers, textile industry, and supply of agricultural commodities and consumer goods. A Memorandum of Understanding was signed between the Slovak Ministry of Economy and the National Centre for Trade and Information (NCTI) of the Indian Ministry of Commerce. The then Slovak Minister of Economy, Mr.Karol Cesnek, also visited India in December '96, and had meetings with the Minister of Commerce and senior officials in the Ministries of Commerce and Defence, to discuss bilateral co-operation. The 3^rd session of the Joint Committee was held in Bratislava in October 1998 and a Protocol was signed between the two countries. Simultaneously, the Slovak-India Joint Business Council was held in which 14 representatives of Indian companies participated. Subsequent to this a Slovak Business Delegation, led by the President of Slovak Chamber of Commerce and Industry visited India from 11-21 November 1998. The 4^th session of the Joint Business Council took place in New Delhi in April 2004. The 5^th Session of the Indo-Slovak Joint Committee on Economic and Commercial Cooperation was held on 19^th October 2004 in Bratislava. It was agreed at this meeting to exchange delegations in automobile, textile, leather, pharmaceutical sectors; organise Enterprise India exhibition in Slovak Republic; finalise BIPA, DTAA and to participate in mutual trade fairs.

The 6^th session of the Indo-Slovak Joint Committee on Economic and Commercial Cooperation, which took place in New Delhi on 13th November 2006. A protocol was signed with both sides agreeing to enhance cooperation in traditional areas and diversify the trade basket. It was also decided to organize an Indo-Slovak Business and Investment Forum in Slovakia in 2007-08. It was also decided to hold the meeting of the Joint Committee on Science & Technology in the first half of 2007. The meeting also decided to expedite the conclusion of the Double Taxation Avoidance Agreement (DTAA). An Indo-Slovak Business and Investment Forum was organized by FICCI on 14th November 2006.

Several Indian firms are doing business with Slovak companies. During the President's visit to Slovakia in October '96, his delegation included leading industrialists and representatives of FICCI. The business delegation had meetings with the Slovak Chamber of Commerce and individual Slovak companies, in which specific projects for co-operation were discussed. These included joint ventures for manufacture of crystal-ware in India; for finishing and marketing of textiles in Slovakia; and joint manufacture and marketing of chemicals and pesticides; as well as export of rice from India and containers from Slovakia. During the visit of the Minister for Steel and Mines to Slovakia in June '97, he had meetings with the Slovak Minister of Economy and representatives of the Chamber of Commerce and the major VSZ Steel Works at Kosice in eastern Slovakia and discussed prospects for enhancement of bilateral co-operation. The Minister of State for Health and Family Welfare, during her visit, had meetings with the Slovak Minister for Health and leading manufacturers of medical equipment, ambulances and container hospital facilities. The possibilities for increased co-operation including promotion of Indian traditional systems of medicine in Slovakia; import by Slovakia of Indian drugs and pharmaceuticals; and import by India of medical equipment, ambulances and container hospitals from Slovakia were discussed. During his visit to Slovakia in May 1998, the Union Minister for Environment and Forests Shri Suresh P. Prabhu, had a meeting with the Slovak Minister of Economy, Mr Milan Cagala.

The Slovak Economy Minister Mr. Lubomir Jahnatek visited India in November 2006. During his visit Mr. Jahnatek met the Minister for Commerce & Industry Mr. Kamal Nath and senior officials of the ministries for Power and Defence Production.

India and Slovakia signed the Bilateral Investment Promotion and Protection Agreement (BIPA) in September 2006.

Following the visit of an Indian delegation from the Ministry of Finance in June 1998, the Government of India Mint, Hyderabad, awarded a contract in July '98 for production and supply to India of 700 million Re 1 coins by the Slovak Mint, Mincovna Kremica. In June 1999, Kremica Mint again won an international tender for supply of 300 million Re 1 coins to India.

INDIA'S ECONOMIC REPRESENTATIVES LOCATED IN EUROPE