India is one of the largest and fastest growing economies in the world, so there is no need to emphasize that taking care of good relations with this Asian power is a matter of strategic importance to us. And what specifically can this cooperation bring to both our countries? We asked Mrs Narinder Chauhan, the Indian ambassador to the Czech Republic.
How do you assess the overall level of economic relations between the Czech Republic and India?
They are on a great level, especially thanks to the meetings that have taken place over the past twelve months - including a visit by the Indian President to the Czech Republic in September 2018 and a visit by the Czech Prime Minister to India in January 2019 - altogether eleven trade missions. Direct bilateral trade between the Czech Republic and India last year exceeded $ 1.5 billion in turnover, and indirect trade reaches an even higher figure, constantly looking for new areas of cooperation. In India, more than 60 Czech companies have invested, among them Škoda Auto, Škoda Power, Bonatrans and Home Credit. The Czech Republic is also an active partner in the major Make in India, Skill India and Smart Cities Mission initiatives and has participated in many summits and fairs that we organize to promote exports. As for the Indian presence in the Czech Republic, Prague alone enriches the gastronomic offer of more than 75 Indian restaurants and our flagship, IT company Infosys, has a campus in Brno. Every year more than one hundred thousand Indian tourists visit the Czech Republic and there are already thousands of Indian students and researchers at your universities. The Indian community in the Czech Republic is also growing rapidly thanks to the many professionals who come here to work for Czech companies.
What is Smart Cities Mission
It is a government program to turn hundred Indian cities into so-called smart cities, cities friendly to their people and respecting the principles of sustainable development. The implementation of the program is the responsibility of the Indian Ministry of Urban Development in cooperation with the regional government of the state in whose territory the city is located.
How would you approach India's potential trading and investment partners from the Czech Republic?
It is important to say that India is currently one of the fastest-growing economies in the world. In addition, it is expected to grow rapidly over the next few decades. India's gross domestic product in 2018 was $ 2.7 trillion and is projected to rise to $ 5 trillion by 2024. So it is clear that India is doing very well. The availability of a skilled workforce, abundant natural resources, rising domestic consumption, lower production costs, English as one of the main business languages and government pressure to develop infrastructure have turned India into a magnet for investment. Furthermore, our country has become an attractive destination not only for investment but also for business. In the last few years it has risen rapidly in the World Bank's Ease of Business Index. And India has also advanced a lot in digitization, including in the field of digital mobility, which in reality means that 90% of tourists and business people coming to India will obtain a visa easily by electronic means.
Conversely - how would you approach the Czech Republic to potential business and investment partners from India?
Your country has achieved many remarkable successes. The introduction of investment incentives in the Czech Republic and its accession to the European Union in 2004 stimulated a massive flow of foreign direct investment into greenfield projects and, in terms of its ability to attract foreign direct investment, the Czech Republic eventually became one of the most successful countries in Central Europe. Foreign capital is present in 170,000 Czech companies today. The Czech Republic is among the twenty most competitive countries in the world, it is easy to do business and trade here, and the Czech Republic is at the top of the list of countries with the best parameters for cross-border trade. Thanks to the stable political situation and government support of the sector, it has become the most promising business destination in the world. Furthermore, the Czech Republic is among the ten safest tourist destinations, which is reflected in the rapid growth of Indian tourists. But many Indian students are also coming here because your universities provide quality education at an affordable price, as well as professionals because there is a great demand for qualified specialists.
What is Skill India
A campaign to provide education and special training in various fields to 400 million people in India by 2022. The campaign was launched on 15 July 2015 by Indian Prime Minister Narendra Modi.
Where do you see the main reserves regarding economic cooperation between the Czech Republic (or the EU) and India? In which specific areas?
The EU is one of India's largest trading, technology and investment partners and also a major destination for Indian exports. Similarly, there is great potential for expanding trade between India and the Czech Republic. We consider the Czech Republic to be a modern, dynamic, high-tech country that places great emphasis on research and development. In addition, India can offer a talented and highly skilled workforce and a huge market. This makes our two countries a natural partner with an interest in mutual investment, with particular interest in the heavy industry, IT, arms, infrastructure, tourism, automotive, transport, energy and pharmaceutical industries. In addition, the signature of the 2018 Memorandum of Understanding on Scientific and Technological Cooperation between the two Countries extends the possibilities for cooperation of our research and innovation experts.
What specific actions to promote Czech-Indian economic cooperation are you planning for the next twelve months?
I would like to invite all interested parties, especially representatives of heavy industry, to the Indian investment meeting, which will take place on 8 October 2019 in Brno as part of the accompanying program of the International Engineering Fair (7-11 October 2020) and will explore new possibilities for economic cooperation between Czech and Indian subjects. We will also be pleased if representatives of the professional and general public come to see the expositions of 45 Indian engineering companies exhibiting at the fair. There are also two major events taking place in India. The first of them - India-Central Europe Business Forum - will take place on 20 − 21. It will address the issues of closer trade cooperation between India and Central European countries. The second event, called DefExpo 2020, is an arms trade fair that will take place from 5 to 8 February in Lucknow, the capital of Uttar Pradesh, the northern state of the country. More information about these and other planned events can be found on the website of the Indian Embassy in Prague (www.eoiprague.gov.in/) and on our Facebook page.
What is Make in India
It is a project involving 25 sectors of the Indian economy aimed at encouraging companies to produce their products in India and invest more in production capacity. The Indian government launched the project on September 25, 2014.
