India-Serbia Bilateral Trade and Business Ties: A 2024 Report

Posted by Written by Archana Rao Reading Time: 5 minutes

India and Serbia continue to deepen their bilateral ties, leveraging shared values and a growing partnership that spans trade, investments, and cultural exchanges. High-level engagements, including agreements in defense, IT, agriculture, and cultural cooperation, have set an ambitious roadmap for growth.

With a goal of reaching €1 billion in trade by 2030, India and Serbia are fostering closer collaboration across priority sectors. Indian investments in Serbia, ranging from manufacturing to agriculture and technology, have bolstered Serbia’s economic growth and expanded India’s footprint in the European market. As the two countries focus on mutual growth and innovation, their relationship reflects a promising trajectory in global diplomacy and economic cooperation.

High-level visits and bilateral dialogue

In 2023, Indian President Droupadi Murmu and Serbian President Aleksandar Vucic established an ambitious goal to increase bilateral trade to 1 billion euros by 2030.

In addition, Serbian President Vucic highlighted six priority areas for collaboration: defense and military technology, pharmaceuticals, agriculture, industrial partnerships, information technology, artificial intelligence, and cultural exchanges, including film production and digital cemetery graphics.

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Vučić also participated virtually in India’s Voice of Global South Summit in November 2023, hosted by India’s Prime Minister Modi. Other high-level engagements include External Affairs Minister Jaishankar’s meetings with Serbian leaders at the NAM Summit in January 2024.

Several agreements have been signed between the two countries, including on defense cooperation, plant protection, and cultural exchange programs. The establishment of the India-Serbia Joint Economic Committee further supports this partnership.

Trade and economic relations

Trade between India and Serbia has grown significantly, with total bilateral trade reaching US$126.39 million in FY2023-24, compared to US$96.41 million in FY2023-22. India’s merchandise exports, which saw a healthy increase, include pharmaceuticals, machinery, IT services, and textiles. Serbia exports agricultural products and high-quality food processing items to India.

India Serbia Import-Export Data (Value in US$ Million)

Trade figures

FY 2019-20

FY 2020-21

FY 2021-22

FY 2022-23

FY 2023-24

India’s export to Serbia

83.68

90.77

89.89

82.69

106.91

Growth %

 

8.48

-0.97

-8.01

29.29

India’s import from Serbia

11.51

7.31

11.07

13.71

19.48

Growth %

 

-36.48

51.42

23.89

42.03

Total

95.18

98.08

100.96

96.41

126.39

Growth %

 

3.05

2.94

-4.51

31.1

Source: Department of Commerce, Ministry of Commerce and Industry, GoI

India’s Exports to Serbia (Value in US$ Million)

Commodity

FY 2022-23

FY 2023-24

 Growth %

Organic chemicals  

24.61

29.77

20.97

Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof.  

11.2

22.9

104.41

Ceramic products.  

2.13

9.92

365.39

Pharmaceutical products  

5.39

5.67

5.22

Plastic and articles thereof.  

4.23

4.36

3

Vehicles other than railway or tramway rolling stock, and parts and accessories thereof.  

7.04

4.07

-42.13

Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts.  

3.68

3.45

-6.25

Rubber and articles thereof.  

2.65

2.64

-0.51

Footwear, gaiters and the like; parts of such articles.  

1.83

2.42

31.98

Special woven fabrics; tufted textile fabrics; lace; tapestries; trimmings; embroidery.  

1.85

1.88

1.74

Optical, photographic cinematographic measuring, checking precision, medical or surgical inst. And apparatus parts and accessories thereof;  

1.49

1.68

12.41

Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, or radi. Elem. Or of isotopes.  

0.33

1.65

396.32

Articles of stone, plaster, cement, asbestos, mica or similar materials.

1.52

1.56

2.95

Source: Department of Commerce, Ministry of Commerce and Industry, GoI

India’s Imports from Serbia (Value in US$ Million)

Commodity

FY 2022-23

FY 2023-24

 Growth %

Tobacco and manufactured tobacco substitutes.  

1.12

7.15

537.97

Edible fruit and nuts; peel or citrus fruit or melons.  

3.34

4.12

23.28

Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers,and parts.  

3.63

2.17

-40.29

Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof.  

0.67

0.83

23.47

Arms and ammunition; parts and accessories thereof.  

0.06

0.77

1,252.11

Optical, photographic cinematographic measuring, checking precision, medical or surgical inst. And apparatus parts and accessories thereof;  

0.83

0.77

-7.98

Organic chemicals  

0.24

0.77

220.84

Raw hides and skins (other than furskins) and leather  

0.22

0.57

154.36

Miscellaneous chemical products.  

0.02

0.35

2,074.07

Plastic and articles thereof.  

0.18

0.33

80.78

Wood and articles of wood; wood charcoal.  

0.67

0.33

-51.5

Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, or radi. Elem. Or of isotopes.  

0.01

0.29

4,194.12

Residues and waste from the food industries; prepared animal fodder.  

0.38

0.26

-30.64

Source: Department of Commerce, Ministry of Commerce and Industry, GoI

India and Serbia Double Taxation Avoidance Agreement

The Double Taxation Avoidance Agreement (DTAA) between India and Serbia aims to prevent the incidence of double taxation on income earned in both countries, fostering smoother economic and investment activities. The two countries signed their DTAA on February 8, 2008.

Recipient Country

Withholding Tax Rates (%) from Certain Types of Income

Serbia

Dividend

Interest

Royalty

Fee for technical services

 

5; 15

10

10

10

Source: Income Tax Department, Ministry of Finance, GoI, India Briefing

Indian investments and business engagements in Serbia

Indian investments in Serbia have played a significant role in fostering economic ties between the two nations, spanning diverse sectors such as manufacturing, agriculture, real estate, and technology. Below is an overview of major Indian initiatives in Serbia, demonstrating the depth and breadth of collaboration:

  1. Aluminum panel manufacturing (2012)
  • Investor: UAE-based Indian company Mulk Holdings.
  • Project: Established a facility in Banatski Karlovac.
  • Investment: US$20 million (EUR 18 million).
  1. Tractor assembly by Sonalika Group (2012)
  • Partnership: Collaboration with Serbian company FPM Agromehanika AD.
  • Project: Assembly line for SOLIS brand tractors in Boljavac, Serbia.
  • Outcome: Export-oriented production, contributing to EU markets.
  1. Mahindra tractors assembly (2017)
  • Partnership: Through Serbian company Agropanonka.
  • Focus: Assembly and distribution of Mahindra tractors.
  1. Wai Wai noodle factory established in Serbia by CG Food India (2017)
  • Project: Establishment of a noodle manufacturing facility.
  • Investment: US$10 million (EUR 9 million).
  1. TAFE’s acquisition of IMT (2018)
  • Company: Tractors and Farm Equipment Limited (TAFE).
  • Acquisition: Serbian tractor manufacturer IMT (Industrija Masina i Traktora AD).
  • Investment: US$0.69 million (EUR 600,000).
  • Assets: Brand rights, designs, intellectual property, and real estate in Jarkovac, near Belgrade.
  1. Motherson Sumi group expansion (2021-2022)
  • Second factory (2021): Produces luxury car interiors for brands like Porsche, Audi, and BMW.
  • Investment: EUR 38 million.
  • Employment: 455 workers.
  • Third facility (2022): Opened in Pozarevac, employing 900 people.
  • Overall investment: Combined investment in Serbia totals EUR 65 million, employing approximately 4,500 workers across multiple facilities.

Indian investments have significantly contributed to Serbia’s industrial and technological growth while opening avenues for export to broader European markets. These initiatives underscore the strategic partnership between India and Serbia, emphasizing economic development and mutual benefit.

Conclusion

In conclusion, the India-Serbia bilateral relationship has made notable strides in recent years, with both countries strengthening their economic, trade, and cultural ties. The ambitious goal of reaching €1 billion in bilateral trade by 2030 reflects the growing mutual commitment to expanding collaboration across sectors such as defense, agriculture, IT, and industrial partnerships. Indian investments have contributed to Serbia’s economic development, job creation, and technological advancements. As the partnership continues to evolve, both nations are poised for greater success in their shared journey of growth and innovation.

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