India-EU FTA to open doors for Czech investments and joint ventures in India

The proposed India-European Union free trade agreement will create opportunities for deeper collaboration between Indian and Czech companies, First Deputy Prime Minister and Minister of Industry and Trade of the Czech Republic Karel Havlicek said here on Monday.

He highlighted that firms from Czech Republic, a European Union (EU) nation, are keen to forge joint ventures and facilitate investments in India.

Addressing the India-Czech Republic Business Forum organised by CII, Havlicek described Czech Republic (Czechia) as an engineering oriented nation and one of the major countries in the world which can produce a complete aircraft.

“At the same time, we are ready to offer companies from the construction segment, energy sector, transport, and also ready to collaborate at the level of R&D,” he shared.

Earlier this year, the 27-nation EU and India announced the conclusion of negotiations for the free trade agreement (FTA) with the two sides expected to ink the pact by the end of the year.

“It (signing of the pact) is extremely important because that is the moment when we are creating a free trade zone of over 2 billion people. It is amazing, so there is a chance for Indian companies to work with Czech firms and Czech companies are ready to be active in India,” Havlicek said.

He is leading a business delegation to foster commercial ties with India, alongside other engagements.

“We are coming not only as exporters but at the same time as entrepreneurs, they are ready to create joint ventures with your businesses in India and at the same time, to invest in India because we know that your strategy which is called Make in India, it is the most important economic topic of your country,” he said in his address to the forum.

Under the proposed pact, 93 per cent of Indian shipments will enjoy duty-free access to the 27-nation bloc, while the import of luxury cars and wines from the EU will become less expensive.

The deal, concluded after negotiations spanning over two decades, will create a market of about 2 billion people across the world’s fourth-largest economy, India, and the second-largest economic bloc, the EU.

Taken together, India and the EU account for 25 per cent of the global GDP and one-third (about USD 11 trillion) of the international trade (about USD 33 trillion).

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