History of Relations

The founding of an independent Czechoslovakia in October 1918 accompanied by a boom in economic and scientific-technical fields has ensured the development of mutual relations between both countries. In 1921, Czechoslovak Consulate in Bombay was established and should consistently contribute to the expansion of the Czechoslovak enterprises in the Indian market.

The advent of the global economic crisis in 1929 caused a slowdown in trade between these countries. In the mid-thirties both countries planned the establishment of the Indo-Czechoslovak Chamber of Commerce, which should have been attended by several dozen companies of Mumbai. This plan has never been given in life. Despite this fact, some of the Czechoslovak firms focused on the Indian market, where they established their own manufacturing factories.

The symbol of the success of Czech entrepreneurs in the Indian market was represented by Bata factories, which were built in Batanagar near Kolkata and Batapur with sales network across the whole country. The mutual trade relation of both countries was interrupted by the Nazi occupation of Czech lands in March 1939 and renewed after the Second World War.

Czechoslovakia was among the first countries with which India has established its diplomatic relations after gaining independence in 1947. But later in February 1948, the Communist Party of Czechoslovakia, with Soviet backing, assumed undisputed control over the government of Czechoslovakia, which significantly affected the Czechoslovak foreign policy and its directive administration from Moscow. Till Stalin's death, foreign policy of the Soviet Union had very cold relations with India restricted to the necessary diplomatic formalities. In 1966, India and the Czech Republic signed the Agreement on the use of nuclear energy for peaceful purposes; in 1973 the Agreement on scientific, technical and industrial cooperation was signed. Czechoslovakia participated in the construction of more than sixty industrial enterprises in total and a separate chapter is represented by large army supplies from Czechoslovakia to Indian Army accounting for a substantial proportion of the total export.

India was one of the first countries that recognized the establishment of the independent Czech Republic in 1993. During the visit of the Czech Minister of Industry and Trade in India, important economic agreements (payment switched over to freely convertible currencies) were negotiated.

Bilateral Agreements

  • 1966: Agreement on the use of nuclear energy for peaceful purposes
  • 1973: Agreement on scientific, technical and industrial cooperation
  • 1978: Agreement on cooperation in sea transportation
  • 1993: Trade Agreement between the Government of the Czech Republic and the Government of the Republic of India
  • 1998: Bilateral Investment Promotion and Protection Agreement (BIPPA) ratified on 6/2/98
  • 1999: Double Taxation Avoidance Agreement (DTAA) w.e.f. 2000
  • 2003: Agreement on Defense Co-operation between the Government of the Czech Republic and the Government of the Republic of India
  • 2010: Agreement on Economic Cooperation between the Government of the Czech Republic and the Government of the Republic of India