Despite global slowdown, Czech Republic is looking forward to invest in India for new locations for business and trade expansions.
The Czech companies are making investments in Pune and Aurangabad in Mahrashtra.
The estimated investments in Maharashtra will be around 400 million euros in the next two years and over 100 million euros has been already invested in Pune and Aurangabad for auto transmissions and formanufacturing railway equipments.
Speaking to Business Standard about this, Miloslav Stasek, Ambassador of the Czech Republic to India said, “India is a priority market for us and we have historical industrial relations with India. Both the economies look forward to each other for forging, economic, commercial and political relations as both the countries have been in the midst of reforms after opening up their economies to foreign investment and technology. we are encouraging our companies to invest in India and we are quite pleased with the emerging opportunities in the Pune and Maharashtra region.”
He added, "Pune is favourite investment destination for European companies and several large European majors such as Skoda, Mercedes Benz, Siemens are already present in Maharashtra. We feel that more Czech companies would establish their manufacturing base in Pune, one of the fastest growing districts in Maharashtra. The Czech Republic is also keen on introducing, establishing and strengthening the position of the famous Czech design trade brands in the Indian market. "
EEPC India,a industry body focussing on engineering sector exports from India in association with Czech Republic has organised a India Engineering Sourcing Show 2013 in Mumbai from 14-16 March 2013. Over 100 Czech companies will be attending this meet.
Czech companies like Bonatrans and Wikov Transmissions are investing 50 and 15 millon euros respectively in Pune and Aurangabad.
Majority of the investment made by Czech companies will be in Maharashtra.
These companies are investing in the sectors like defence, automobile, manufacturing, energy and heavy industries.
However, Stasek has not disclosed all the names to be inveting in the region.
Indian companies like Reliance Industries, Thermax, Mahindra and Mahindra, L & T Infosys has expanded their businesses in Czech Republic.
Both the countries have designed a vendor development programme for investments in defence sector.
The official tool-kit about this will be released in the month of March this year. Current Trade between India and Czech is around USD 1.3 billion and is expected to double in the next two years.
Czech Republic's 80 per cent trade is done with Europian Countries.
According to Aman Chadha, chairman EEPC India, IESS 2013 will give a major boost to Indo-Czech Trade partnership.
IESS 2013 is getting various international delegations from Europe, Africa, South America and ASEAN countries. As the partner country, the biggest delegation is from the Czech Republic.
Indian companies are trading in Industrial Machinery and equipment with the Czech Republic and expecting see more joint ventures and investments in both the countries, post IESS 2013.
After they together paid Rs 12 lakh to settle charges related to alleged delay in amending insider trading norms