Czech Industry Chief: India-EU FTA Could Transform Partnership
Jan Rafaj says the India-EU Free Trade Agreement could transform bilateral partnerships and reduce business barriers between the two markets.
The proposed India-European Union Free Trade Agreement (FTA) represents a massive breakthrough that could fundamentally reshape the commercial relationship between the two regions. This sentiment was expressed by Jan Rafaj, President of the Confederation of Industry of the Czech Republic, who noted that the pact could significantly accelerate trade and strip away existing operational burdens for businesses.
A Turning Point for Bilateral Trade
Speaking on the potential impact of the free trade pact, Rafaj emphasized that the agreement acts as a crucial turning point for bilateral commercial relations. He highlighted that the current movement toward an FTA addresses long-standing issues faced by enterprises operating across these borders.
"Yes, this is the opening point, because you know, this could really change our partnership," Rafaj told ANI. "As you know, before, there were some obstacles for the business, giving too big a burden. But now we can really start the business much faster and with lower barriers."
The remarks follow the signing of a Memorandum of Understanding (MoU) between the apex industry confederations of India and the Czech Republic, aimed at creating a supportive bridge for companies entering each other's home markets.
Insulating Business from Global Turmoil
Amidst a landscape of heightened global instability—including conflicts in Ukraine and tensions involving the US, Iran, and Israel—Rafaj expressed confidence that strengthening private-sector partnerships can act as a shield. He suggested that the deep-rooted connections being forged now could help businesses navigate the volatility currently affecting global markets.
"I think exactly those partnerships which we are just now making here are the crossing over these troubles which are making others in the global markets," he observed.
Building a Gateway for Industry
The newly signed MoU is designed to serve as a platform for closer institutional collaboration. Rafaj explained that as the representative voices of industry in their respective nations, the confederations are uniquely positioned to act as a gateway for businesses.
"We are big partners. We are, in principle, the voice of industries in both the countries... We know how to start a business. We know who are the right partners, who are the financial institutions who could support," Rafaj said.
The goal is to create a "sheltering organisation" that provides first-level advice and facilitates market access for both Indian and Czech companies. This includes a diverse range of sectors, from heavy hardware to advanced digital solutions.
From Heavy Machinery to Semiconductors
The trade relationship is expected to see a balanced exchange of goods and services. Rafaj detailed a wide spectrum of technological and industrial equipment that could flow between the two markets:
- Hard Technologies: Trucks, heavy lorries, radar technologies, drones, and even defense-related equipment.
- Advanced Software: Cybersecurity solutions and sophisticated digital tools.
- High-Tech Components: Semiconductors, noting the presence of major players like onsemi and Thermo Fisher operating in the Czech Republic.
The push for the India-EU FTA follows a joint announcement by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen during the 16th India-EU Summit in New Delhi earlier this year. The agreement seeks to deepen economic ties, building on the massive trade volumes already seen between the two regions. In the 2024-25 period, bilateral trade in goods between India and the EU reached USD 136.54 billion, while trade in services reached USD 83.10 billion.