Country Profile- Czech Republic
Czech Republic is located in the Central Europe and is a landlocked country and recognised as a manufacturing powerhouse. It is an export led economy.
The United Nations Development Programme ranks Czech Republic 27th in terms of Human Development Index with the value of 0.888. It is ranked 35th in ‘Ease of Doing Business report’ 2019 by World Bank with 1st rank in trading across borders. As per World Economic Outlook Database, 2018 estimate Czech Republic is ranked 50th in world in GDP in PPP terms at a value of US$ 368.7 billion while ranked 49th in GDP in nominal terms at a value of US$ 238.0 billion. The per capita GDP of Czech Republic in PPP terms is estimated to be US$ 36784 and in nominal terms it is estimated to be US$ 22468 in 2018 by World Economic Outlook Database.
In 2017, Czech Republic imported US $162.06 billion worth of goods. Its export was over US $ 180.01 billion in value in 2017 which accounted for 1.0 % of the total exports in the world.
As per ITC trade map Czech Republic ranks 28th among the top world exporters, list is led by China. The top trading partner of Czech Republic in 2017 was Germany, followed by Poland and China. India does not rank in the list of top 10 trading partners of Czech Republic, but has a significant trade with Czech Republic with an export by India to Czech Republic of US$ 393.5 million, while imports by India from Czech Republic was at US$ 630.8 million, resulting into a trade deficit of US$ 237.3 million for India.
CZECH REPUBLIC’S MERCHANDISE TRADE WITH WORLD
Czech Republic’s exports from the world have followed its path of imports throughout, as can be seen in the graph below. The country has maintained a trade surplus throughout the past decade. In 2017 it had a trade surplus of US $ 18.0 billion, the trade balance is positive but doesn’t follow an increasing trend. In the last 10 years trade surplus was highest in the year 2014 at US$ 21.1 billion. Barring the dip in trade surplus in 2015 trade balance of Czech Republic on an average showed an increasing trend throughout the decade.
CZECH REPUBLIC’S EXPORT TO THE WORLD
Czech Republic’s total export in 2017 amounted to US $180.01 billion. Its top export products at HS-6 digit level last year were Motor cars and its parts under different heads of HS code 87, automatic data-processing machines and telephones for cellular networks. More than 21% of Czech Republic’s total export is motor vehicle, cars and related parts, making it one of the biggest exporter of the same.
CZECH REPUBLIC’S IMPORTS FROM THE WORLD
Czech Republic’s import basket is primarily led by Telephones for cellular networks Crude petroleum oil, Data-processing machines, Medicaments and Electronic integrated circuits which together made up the Top 5 imports of Czech Republic.(Total imports – US $ 162.06 billion) at HS-6 digit level.
INDIA- CZECH REPUBLIC MERCHANDISE TRADE
India’s trade balance with Czech Republic in the past decade may be divided into 3 phases – pre 2016, 2016 and post 2016. Till 2015, trade balance was negative i.e. there was a huge trade deficit till 2015 for India vis a vis Czech Republic. In this phase it primarily saw an (negative) upward trend till 2011 reaching a deficit of US$ 462.0 million, declining since then, till 2015. In 2016, India had a trade surplus with Czech Republic of US$ 4.8 million. Again in 2017 trade deficit plummeted to US$ 237.2 million for India vis a vis Czech Republic. India’s export and import followed a ‘scissor’ shaped trend year on year in the last decade conjoining in the year 2016.
INDIA’S EXPORT TO CZECH REPUBLIC
India’s total exports to Czech Republic amounted to US $ 393.5 million in 2017. Its top five exports at HS-6 digit level were Medicaments, Cast articles of iron or steel, Engines and motors, Parts and accessories for tractors and Men’s or boys’ shirts of cotton. It amounts to 29% of the total export to Czech Republic from India.
INDIA’S IMPORT FROM CZECH REPUBLIC
India’s total import from Czech Republic in 2017 was US $ 630.8 million. India’s import was dominated by Gear boxes and parts, Parts and accessories for tractors and motor vehicles, Spark-ignition reciprocating piston engine, Parts and accessories of machines for sizing man-made textile and Drive-axles. The top 5 products amount to 22% of total imports by India from Czech Republic.
Czech Republic is an important trading partner of India in Europe especially for manufacturing products. During the last visit by the Indian President, he himself iterated that Czech strengths in manufacturing and advanced technology make the country a natural fit to partner Indian economic growth and next-generation development. Czech Republic ranks 64th among foreign investors in India. Cumulative FDI inflows from Czech Republic stood at US $ 24.45 million between April 2000 to March 2017. Czech Republic is among the few European Economies that have registered a high economic growth rate. It is a preferred destination for Indian investors looking for opportunities in Europe. Bata, the most popular footwear company in India has its roots in Czech Republic. Czech Republic is renowned for its high-tolerance machinery and related manufacturing as well as engineering and technical skills in manufacturing.
Czech Republic’s technology and engineering prowess may boost India’s “Make in India” initiative and ascertain its movement up the value chain. Czech Republic and India has moved further and have initiated engagement in exploring opportunities in sectors such as civil aviation, civil nuclear energy and solar energy. It is a step in the right direction.