India and Czechia, though separated by thousands of miles, have enjoyed strong ties dating back centuries. From the ancient Kingdom of Bohemia trading precious goods and spices with India, to the Czech National Revival’s fascination with Sanskrit and Indian culture, the two nations have always found common ground.
Historical ties between India and Czechia date back to the early 20th century, when the first Indian students arrived in Prague to study at the Charles University. The Czechoslovak Republic was one of the first countries to recognize India’s independence in 1947 and establish diplomatic relations with it. The two countries also supported each other in their respective struggles against foreign domination and oppression. In 1955, India invited Czechoslovakia to participate in the Bandung Conference of Asian and African countries, which laid the foundation for the Non-Aligned Movement
After the peaceful dissolution of Czechoslovakia in 1993, India recognised the newly formed Czech Republic and continued to maintain close and friendly relations with it. The two countries signed a Treaty of Friendship and Cooperation in 1996, which provided a framework for enhancing bilateral cooperation in various fields. Since then, the two countries have exchanged several high-level visits and signed numerous agreements and memoranda of understanding (MoUs) on various issues of mutual interest. The list spans Medicine, Yoga & Unani, Science & Technology, Visa waivers for diplomats, Defence cooperation, Aerospace, Nuclear Energy & Mineral Resources.
Our alliance has continued to strengthen and deepen in the modern era. Just in the past few years, we’ve seen a flurry of high-level visits, new agreements, and booming trade that bodes very well for the future. The two countries just celebrated the 75th year of diplomatic relations after Indian sovereignty.
President Kovind’s 2018 state visit had marked a new high point in bilateral relations, with 8 major agreements signed spanning trade, defence, science, & cultural assimilation. As tenured diplomats are wont to say, the fruits of state visits are often agreements and MOUs – and this one was quite the showcase. It is the symbolism of such interaction and engagement that forecasts an enduring & keen desire of both nations to move the relationship forward, and diversify the avenues of cooperation further.
Indo-Czech defence cooperation has also gained momentum, with regular arms sales and joint exercises. As the wags in New Delhi like to joke, Czechia provides the arms while India provides the warm embrace. But in seriousness, both militaries benefit. India gains quality equipment and Czech firms gain a massive new market.
One of the most important areas of cooperation between India and Czechia is trade & investment. The two countries have a long history of economic engagement, dating back to the pre-independence era when Czechoslovakia supplied machinery and equipment to India’s nascent industries. Today, the bilateral trade between the two countries stands at around $1.5 billion, with a potential to grow further. The main items of export from India to Czechia are textiles, garments, leather goods, pharmaceuticals, chemicals, engineering goods, and IT services. The main items of import from Czechia to India are machinery, electrical equipment, automobiles, optical instruments, iron and steel products, and plastics.
The two countries have also established several institutional mechanisms to facilitate trade and investment flows between them. These include a Joint Commission on Economic Cooperation (JCEC), a Joint Business Council (JBC), a Joint Working Group on Industrial Cooperation (JWGIC), a Joint Committee on Science and Technology (JCST), and a Joint Working Group on Defence Industry Cooperation (JWGDIC). These mechanisms provide a platform for regular dialogue and consultation between the governments and the business communities of both countries.
Predictably, trade has positively and steadily scaled, especially since Czechia joined the EU in 2004. From a mere $86 million in 1993, it catapulted to over $2 billion by 2021. And 2022 saw the launch of the PLI Scheme, production linked incentive program by India, to attract manufacturing investment. With Czech expertise in lasers, nanotech and other tech-intensive fields, there is much to gain: tech and pharmaceutical companies keen to take advantage of India’s skilled workforce and enormous market. Of course, while diplomats obsess over trade figures and agreements, we cannot forget the cultural ties that truly bind nations together. The iconic AKAM Festival celebrating Rabindranath Tagore drew a crowd of thousands. And yoga has become hugely popular across Czechia – a testament to India’s ever growing congeniality, soft power, and cultural magnetism.
Looking ahead, there a vibrant array of upsides for both countries. India offers Czech firms a gateway to over a billion emerging consumers, and one of the biggest, if not the most, market in the world, with a rising disposable income. On the other hand, Czech universities and tech hubs have, and still are, offering Indian students and entrepreneurs world-class skills and exposure.
There is now the risk of sounding a little too straightforward, but in all earnestness, bilateral & multilateral relationships are about give and take. Yet, pithy & formal salutations aside, India and Czechia complement each other beautifully.
India and Czechia have come a long way since their first diplomatic contact in 1947. The two countries have built an amazing commercial and strategic alliance that is based on mutual trust, respect, and cooperation. The two countries have also developed a strong bond of friendship and understanding that transcends geographical distances and cultural differences. As the two countries pass the landmark of 75 years in their diplomatic relations in 2022, they can look forward to a bright future of partnership and prosperity.
Historical Bonds
Though India and Austria are half a world away from each other, connections between these two cultures, surprisingly, stretch back centuries. What is well known is that India hosted Austrians at Nicobar in the 19th century; but even during the height of the Austro-Hungarian Empire, Indian traders and merchants maintained robust ties with Vienna. Trade involved colourful textiles, spices and other treasured goods along the ancient Silk Road.
The first official diplomatic engagement from the newly crowned capital of Delhi began in the 1920s itself, when India established an honorary consulate in Vienna.
Reciprocally, Austria was one of the first European nations to establish bilateral relations with the newly sovereign nation in 1947. The ‘50s also saw visits & high-level engagements by government officials, including Prime Minister Jawaharlal Nehru and Chancellor Julius Raab. These early interactions became laid the vital seeds of growth, which would foster a solid foundation for the warm association that continues to this day.
Over the decades, India and Austria have supported each other in a variety of multilateral fora, like the UN, G77 and the Nuclear Suppliers Group (India’s nuclear imports from Austria already stand at $181.25 million as of 2022) . Such cooperation also highlights the shared values between the world’s largest democracy and the sophisticated European nation.
Recent Engagement
With the century of globalisation in full swing, India and Austria have taken their partnership to new heights through a series of high-level bilateral agreements. An earnest & major milestone between the two was marked in 2012, when Chancellor Faymann visited India and met with Prime Minister Manmohan Singh & President Pranab Mukherjee. This marked the first visit of an Austrian head of government to India in over two decades, contributing – in no small measure – to the essence of economic cooperation, mutual growth and kinship between the developing and the developed world.
The leaders announced a joint declaration on strategic partnership, covering collaboration in areas such as infrastructure, vocational education, renewable energy and tourism. Additional memorandums of understanding (MoUs) covered diverse topics like railway technology, standardisation and intellectual property rights. Such agreements underscored the two nations’ commitment to strengthening ties.
This momentum carried over into 2018 ,when President Van der Bellen visited India for two days. He and Prime Minister Modi facilitated the signing of MoUs on a diverse set of themes, from defence cooperation, technology transfer and development, to a symposium on Ayurvedic practice & enterprise. The countries also agreed to expedite work on a proposed FTA.
Most recently, political and business leaders came together for the first India-Austria Business Forum in Vienna. Attended by top-level dignitaries like India’s Minister of Commerce and Industry and Austria’s Federal Minister for Digital and Economic Affairs, it highlighted massive opportunities for bilateral trade and investment across sectors like infrastructure, logistics, IT and life sciences. And they have already starting manifesting, a perfect example of which is the collaboration between ISRO & Austria’s ESA in space exploration and technology.
In terms of international mobility, External Affairs Minister S. Jaishankar recently met with his Austrian counterpart Alexander Schallenberg right after the Munich Security Conference, putting into motion the vital Comprehensive Migration and Mobility Partnership Agreement to enhance & streamline the transfer of human resources bilaterally, while minimizing the scope for illegal immigration.
Areas Ripe for Future Growth
As India and Austria continue on this thriving momentum, an abundance of openings have emerged that can catalyse new ventures fuelled by collaboration and partnership.
Infrastructure & logistics is one field with tremendous potential. India plans to invest $1.4 trillion in infrastructure during 2019-2023 to promote sustainable growth and development, and it is a key sector in many a programme, such as those of Smart Cities & India Logistics. Austrian companies, with their expertise in construction, engineering and green technologies, are ideally positioned to support these efforts, and the opportunity is ripe for FDI & knowledge transfer to the benefit of both republics.
Tourism is another area for growth. India is projected to account for over 50 million outbound tourists by 2022. As more Indians travel abroad, Austria can attract its share through joint marketing campaigns highlighting the allure of Alpine scenery, world-class museums and musical heritage, and broaden the tourism industry exposure beyond just Vienna.
Lastly, educational exchanges provide a robust and enduring bridge between the two cultures. Austria already hosts a large Indian student population at its universities. Expanding these prestigious scholarship programmes and research partnerships between our institutions can enable valuable skill, knowledge and technology transfer.
As an optimist, I see India and Austria at the beginning of an extraordinary new phase of collaboration. By building on a shared ethos, harnessing each other’s capabilities, we can become a model of trusted partners. It is beyond a shadow of doubt that we are poised to achieve great things, both bilaterally and as voices for progress globally. The future shines bright for this relationship, that manages to be both centuries old yet still new in its potential.