CZECH REPUBLIC

India - Czech Republic Economic and Commercial Relations

Trade between India and Czech Republic switched over to payment in freely convertible currencies w.e.f. 1.1.1993. For almost a decade, trade volumes were limited, reflecting the impact of economic transformation in the Czech Republic, reorientation of trade priorities, dissolution of state trading companies, down-sizing / liquidation of heavy industry and withdrawal of supporting mechanisms like RPA and trade plans. From the Indian end too, liberalisation and economic reforms widened our options beyond traditional Czech suppliers. Combined with difficulties faced by Czech companies in arranging finance, it led to the virtual elimination of Czech presence from Indian projects that were the mainstay of the economic relationship. As a consequence, trade plunged from $ 406.67 million in 1989 to a low of $66.7 million in 1991 and remained at $130.20 million as late as 1999.