India-Bulgaria Bilateral and Trade Relations

India and Bulgaria have maintained a prosperous and healthy bilateral relationship, marking a 70-year anniversary in 2024. Over the years, trade between the two countries has expanded to include construction materials and specialized tools, and new opportunities are emerging in areas such as components for electric vehicles and equipment for the renewable energy sector.

India and Bulgaria have enjoyed a robust bilateral relationship that has flourished for several years. This enduring partnership marked a historic milestone in 2024 with the 70th anniversary of diplomatic relations between the two nations. Bulgaria’s advancements in logistics and rail connectivity have further elevated its importance as a strategic partner for India in trade and economic cooperation, facilitating seamless exchanges and opening new avenues for collaboration.

The establishment of the Indian Bulgarian Business Chamber (IBBC) on August 5, 2015, and its formal launch on February 16, 2016, has been a cornerstone in strengthening these ties. As a dedicated platform for promoting bilateral economic relations, the IBBC has created collaboration through a series of business forums hosted in key Bulgarian cities, including Sofia, Plovdiv, and Varna.

According to a press note from the Indian Embassy in Sofia, Bulgaria, such business forums have facilitated discussions on mutual economic interests as well as led to the participation of prominent Bulgarian officials, such as regional governors and mayors, underscoring the commitment of both countries to deepening their economic partnership.

Enhancing economic ties between India and Bulgaria

In a meeting held on October 30-31, 2024, Bulgaria’s Minister of Economy and Industry, Dr. Petko Nikolov, and India’s Ambassador to Bulgaria, Sanjay Rana, reportedly explored avenues to deepen economic cooperation, particularly in the IT and services sectors.

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According to media reports, during this interaction, Nikolov reaffirmed Bulgaria’s commitment to strengthening its longstanding positive bilateral relationship with India, emphasizing the potential for increased Indian investment in sectors such as agriculture, defense, pharmaceuticals, engineering, clinical research, tourism, and hospitality. Both officials stressed the importance of leveraging the untapped trade potential between the two nations.

A key focus of their dialogue was the upcoming Bulgarian-Indian intergovernmental commission on economic cooperation, scheduled for 2025. This event is set to serve as a cornerstone for fostering bilateral partnerships, complemented by plans for a business forum aimed at connecting Bulgarian and Indian companies to explore new opportunities.

Europe’s green transition offers India-Bulgaria new trade opportunities: India’s envoy to Bulgaria

India’s ambassador to Bulgaria Sanjay Rana noted Europe’s green transition as a critical driver for enhanced cooperation and trade. He identified Burgas, the second largest city on Bulgaria’s Black Sea coast, as a dynamic and strategically key region for fostering trade between the two countries, given its ports and expanding logistical infrastructure.

Emphasizing on the sustainable nature of the India-Bulgaria partnership, Rana says the two countries have increasingly focused on renewable energy, electric vehicles, and sustainable technologies. In an interview with a Bulgarian news agency in June 2024, Rana discussed the potential for a bilateral agreement to facilitate the hiring of third-country workers in Bulgaria.

India has bilateral arrangements with countries such as Italy, Germany, France, and Austria. Establishing a similar bilateral agreement with Bulgaria could address the latter’s demand for well-trained manpower and further solidify economic ties.

India-Bulgaria trade activities

Source: Department of Commerce, GoI

Source: Department of Commerce, GoI

India’s primary exports to Bulgaria include electric machinery, tobacco, plastics, wool, stainless steel flat-rolled products, and woven cotton fabrics. Meanwhile, India’s major imports from Bulgaria comprise electrical machinery, pharmaceuticals, animal feed preparations, ferrous and aluminum waste and scrap, and organic chemicals. 

Source: Department of Commerce, GoI

India and Bulgaria: Double Taxation Avoidance Agreement (DTAA)

India and Bulgaria have a DTAA in place to promote economic cooperation and facilitate cross-border investments.

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The DTAA ensures that individuals and entities operating in both countries are not subjected to double taxation on the same income, thereby reducing the tax burden and encouraging bilateral trade and investment. The agreement covers income derived from various sources such as business profits, dividends, interest, royalties, and capital gains.

Source: Income Tax Department, GoI; India Briefing

Expanding business activities between India and Bulgaria

Bulgaria presents a diverse range of business opportunities across sectors such as business process outsourcing (BPO), manufacturing, food processing, pharmaceuticals, tourism (including cultural, spa, and golf tourism), IT, biotechnology, education, renewable energy, and mall management. Noteworthy Indian business ventures in Bulgaria include Sutherland Global Services, which operates a business center in Sofia, and CineGrand Pvt. Ltd., which runs theaters in the city. Additionally, Namdhari Seeds, an Indian seed production company, cultivates fruits and vegetables in Plovdiv for export, while Elder Pharmaceuticals, headquartered in Mumbai, has established manufacturing operations in Bulgaria to serve the EU market.

Currently, India’s top five IT companies have a strong presence in Bulgaria. These are:  

1. Tata Consultancy Services (TCS)
2. Infosys
3. Wipro
4. HCL
5. Tech Mahindra

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Bulgaria has also made noteable strides in investing in India. In 2014, Prime Petroleum, a Bulgarian company, set up a bitumen packaging facility in Bhiwandi, Maharashtra, marking a major milestone in bilateral economic cooperation. Other Bulgarian companies, such as Kintex, Huwe Pharma, and Extreme Broadband, have established a presence in India. The Suhindol region of Bulgaria has also gained recognition for its growing wine exports to India, as noted in a press release from the Indian Embassy in Sofia.

In addition to business, the partnership between India and Bulgaria extends to education and technology. In September 2016, the Indian Institute of Hardware Technology (IIHT) inaugurated a center in Plovdiv in collaboration with Bulgaria’s Technology & Innovations Corporation PLC, further solidifying the educational and technological linkages between the two nations.

Strengthen audit collaboration through MoU

In a move to bolster international cooperation in the field of auditing, in April 2024, the Comptroller and Auditor General of India (CAG) signed a Memorandum of Understanding (MoU) with the Bulgarian National Audit Office (SAI Bulgaria). This agreement aims to establish a robust platform for sharing expertise and experiences among auditing professionals and technical teams. It emphasizes cooperation in training initiatives and mutual support in conducting audits, enhancing the professional capacity of both institutions. 

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