India-Slovakia Bilateral Economic and Trade Relations

Posted by Written by Archana Rao Reading Time: 5 minutes

India and Slovakia have enjoyed a cordial and cooperative relationship since establishing diplomatic ties in 1993, following Slovakia’s independence. In recent years, both countries have actively worked to enhance their bilateral engagement across various domains.

In May 2024, Marek Eštok, Slovakia’s State Secretary of the Ministry of Foreign and European Affairs, participated in a bilateral meeting in India. This engagement highlighted Slovakia’s keen interest in leveraging India’s economic potential and showed the shared commitment to strengthening economic ties.

Trade relations between the two nations have seen significant growth, with India emerging as a promising market for Slovakia, particularly in the engineering and automobile sectors.

Diplomatic engagements between India and Slovakia

The India-Slovakia bilateral relationship is supported by established mechanisms such as the Indo-Slovak Protocol on Foreign Office Consultations (FoC), signed in July 1994. These consultations are held annually, alternating between New Delhi and Bratislava, at the level of Deputy Ministers or Department Heads. To date, six rounds of consultations have taken place, with the latest held on February 10, 2023, in New Delhi. The meeting was attended by India’s Secretary (West) and Slovakia’s Director General for Political Affairs.

Economic and trade relations

Find Business Support
How we can help companies leverage growth in the trade and e-commerce industry

India and Slovakia have maintained steady economic ties. In 2023, India’s exports to Slovakia grew by 11.8 percent, reaching €181.0 million, while imports increased by 21.7 percent, totaling €677.1 million.

India-Slovakia Republic Trade Relations Year-on-Year (Value in US$ Million)

Trade

FY 2019-20

FY 2020-21

FY 2021-22

FY 2022-23

FY 2023-24

India’s export to Slovakia

138.42

155.97

171.13

190.22

193.03

Growth %

 

12.68

9.72

11.16

1.48

India’s import from Slovakia

54.84

35.58

101.86

70.92

67.6

Growth %

 

-35.11

186.27

-30.37

-4.68

Total

193.25

191.55

272.99

261.14

260.64

Growth %

 

-0.88

42.51

-4.34

-0.19

Source: Department of Commerce, GoI

India’s Export to Slovakia (Value in US$ Million)

Commodity

FY 2022-23

FY 2023-24

 Growth %

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

36.07

45.12

25.09

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

25.66

38.87

51.47

Rubber and articles thereof.  

17.01

15.38

-9.61

Organic chemicals  

10.33

13.73

32.93

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

12.37

12.06

-2.54

Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishing; lamps and lighting fittings not elsewhere specified or included.

13.57

11.87

-12.52

Articles of apparel and clothing accessories, knitted or corcheted.  

9.89

8.98

-9.26

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

18.51

7.39

-60.08

Articles of iron or steel  

4.36

4.84

10.96

Iron and steel  

3

3.99

33.12

Plastic and articles thereof.  

5.44

3.93

-27.79

Pharmaceutical products  

3.91

3.6

-7.88

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

4.49

3.37

-24.99

Source: Department of Commerce, GoI

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

Commodity

FY 2022-23

FY 2023-24

 Growth %

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

26.44

23.74

-10.22

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

12.95

15.15

16.98

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

7.76

9.81

26.44

Organic chemicals  

1.51

1.85

22.17

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

2.44

1.8

-26.2

Raw hides and skins (other than furskins) and leather  

1.94

1.72

-11.48

Wood and articles of wood; wood charcoal.  

1.19

1.68

41.29

Plastic and articles thereof.  

1.49

1.39

-6.54

Miscellaneous chemical products.  

0.4

1.21

202.69

Miscellaneous articles of base metal.  

0.93

1.04

11.36

Sugars and sugar confectionery.  

0.49

0.94

91.27

Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishing; lamps and lighting fittings not elsewhere specified or inc  

0.66

0.81

22.05

Articles of iron or steel  

6.8

0.62

-90.84

Source: Department of Commerce, GoI

The trade balance stood in India’s favor, with a surplus of €496.1 million, and the total trade volume reached €858.1 million for FY2022-23.  The trade relationship has been marked by exports from India, which include mobile phones, footwear, motor vehicle parts, and pharmaceuticals, while Slovakia’s major exports to India have included machinery, motor vehicles, and bearings.

India-Slovakia Double Taxation Avoidance Agreement

The Double Taxation Avoidance Agreement (DTAA) between India and Slovakia is a bilateral treaty aimed at eliminating the double taxation of income earned by individuals and entities in both countries. Signed in 1986, this agreement facilitates smoother economic and trade relations by providing clarity on tax liabilities and ensuring that income is not taxed twice in both jurisdictions.

Recipient Country

Withholding Tax Rates (%) from Certain Types of Income

Slovakia

Dividend

Interest

Royalty

Fee for technical services

15;25

15

30

30

Source: India Briefing; Income Tax Department, GoI

Investment ties and business engagement

Indian and Slovak investments reflect mutual efforts to enhance bilateral economic ties. Indian multinational companies like the Tata Group have made inroads into Slovakia’s economy. For example, Tata Motors’ automobile manufacturing plant, which has established itself as a key player in the country’s automotive sector. Similarly, Tata Consultancy Services (TCS) provides IT services for Jaguar Land Rover. Other Indian corporations, including the CK Birla Group, Dhoot Transmission, and Samvardhana Motherson Group, have also pursued strategic acquisitions and investments, showcasing the diverse sectors in which Indian businesses are engaging with Slovakia.

Find Business Support
Our business advisory services offer strategic guidance to help you navigate challenges and seize opportunities in Asia’s complex markets. Partner with us for expert insights and solutions.

On the other hand, Slovak companies have shown reciprocal interest in the Indian market. For instance, in 2015, Slovian company Tatravagonka, a major railway wagon manufacturer, acquired a 52 percent stake in the Kolkata-based Jupiter group. The stake was in Jupiter Wagons, a railway freight car manufacturer, and Jupiter Alloys & Steel India, a castings business. 

In 2022, Indian enterprise Zuari Industries collaborated with Slovakian company Envien International to develop a state-of-the-art grain distillery in Uttar Pradesh, reflecting Slovakia’s targeted investment approach in India’s rapidly growing biofuel sector. 

Joint Economic Committee: India-Slovakia

The Joint Economic Committee (JEC), established in May 1995, supports Indo-Slovak bilateral commercial ties. In its most recent session held in Slovakia in June 2023, discussions covered trade, investment, defense, and the automotive sector. Both nations committed to deepening economic cooperation and have set up an ambitious goal to achieve a bilateral trade volume of €1 billion by 2026. This target is based on their shared vision for proportional and sustainable economic growth.

Collaboration in defense and space sectors

India and Slovakia have maintained a defense partnership since signing a Memorandum of Understanding (MoU) in 1995. Recent initiatives focus on joint manufacturing, particularly in artillery and armored systems, to enhance technological capabilities and defense readiness.

In space technology, Slovakia’s first satellite, SKCube, was launched in 2017 aboard India’s PSLV-XL rocket, demonstrating India’s role in supporting Slovakia’s space ambitions. Both nations continue to explore further collaboration in space technologies to expand their scientific and technological capabilities.

Outlook

Find Business Support
Grow Your Presence in Asia with Complete Market Entry and Cross-Regional Support

The growing and multifaceted engagement between India and Slovakia reflects an increasingly diversified partnership spanning the economic, defense, space, automobile, and technology sectors. As a member of the European Union (EU), Indian business and commercial ties to the Central European nation strengthen prospects for expanded trade, investment, and R&D collaboration.

Strengthening bilateral ties with EU nations is particularly strategic as India pursues a free trade agreement with the bloc, creating avenues for cross-border investment. Additionally, India’s focus on manufacturing growth and trade diversification presents opportunities for Slovak companies to leverage their expertise and establish a presence in the Indian market.

About Us

India Briefing is one of five regional publications under the Asia Briefing brand. It is supported by Dezan Shira & Associates, a pan-Asia, multi-disciplinary professional services firm that assists foreign investors throughout Asia, including through offices in Delhi, Mumbai, and Bengaluru in India. Readers may write to india@dezshira.com for support on doing business in India. For a complimentary subscription to India Briefing’s content products, please click here.

Dezan Shira & Associates also maintains offices or has alliance partners assisting foreign investors in China, Hong Kong SAR, Dubai (UAE), Indonesia, Singapore, Vietnam, Philippines, Malaysia, Thailand, Bangladesh, Italy, Germany, the United States, and Australia.