Abstract
Given its population of over 60 million, highly developed human capital with relatively cheap cost of labour and its strategic location between the west and east of Europe, Central Europe presents itself as an attractive location for Asian investments. This chapter provides an overview of Indian foreign direct investment in the four Central European countries (Czechia, Hungary, Poland and Slovakia) and Central European investment in India. It identifies the key challenges faced by Indian investors in the region and examines the rationale for Indian economic engagement in the region. In conclusion, the authors make some concluding observations and look at prospects for the future.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
Notes
- 1.
See Chapter 8 of this volume.
- 2.
The OECD dataset is the only dataset that provides year-by-year statistics of bilateral investment flows between India and each of the V4 countries.
- 3.
Orion Electronics Ltd is part of the Indian Thakral Group based in Singapore.
- 4.
Producer of precision forged components for the automotive industry.
- 5.
Fashion textile retail chain.
- 6.
The second production plant was launched in this city in 2018.
- 7.
85% of shares in Lubuskie Zakłady Aparatów Elektrycznych “LUMEL”.
- 8.
Toruńskie Zakłady Materiałów Opatrunkowych (Toruń Dressing Materials Plant) operates in India through a joint venture with its Indian partner Bella India. Another example of Polish investment in the pharmaceutical sector in India was the modern biotechnology plant in Pune, an investment by Bioton. Two years after the completion of the plant in Pune, however, the Polish company sold its shares in SciGen BioPharma Pvt Ltd (SciGen India).
References
Allen & Over. (2006). Foreign direct investment in Central and Eastern Europe. Allen & Overy LLP. Retrieved November 9, 2020 from http://www.visegradgroup.eu/fdi-in-central-and.
Andreff, W. (2016). Outward foreign direct investment from BRIC countries: Comparing strategies of Brazilian, Russian, Indian and Chinese multinational companies. The European Journal of Comparative Economics, 12(2), 79–131.
Bobenič Hintošová, A., Bruothová, M., Kubíková, Z., & Ručinský, R. (2018). Determinants of foreign direct investment inflows: A case of the Visegrad countries. Journal of International Studies, 11(2), 222–235.
Bobenič Hintošová, A. (2019). Analysis of inward and outward foreign direct investment in Slovakia. Studia Ekonomiczne. Zeszyty Naukowe Uniwersytetu Ekonomicznego w Katowicach, 382, 38–48.
Brînză, A. (2020, July 3). Central and Eastern Europe is not in bed with China. The Diplomat. Retrieved October 20, 2020 from https://thediplomat.com/2020/07/central-and-eastern-europe-is-not-in-bed-with-china/.
Chaudhury, D. R. (2018, August 28). With eye on China’s Belt Road Initiative, India to step up economic partnerships with Eastern, Southern Europe. The Economic Times. Retrieved October 20, 2020 from https://economictimes.indiatimes.com/news/economy/foreign-trade/india-plans-to-boost-economic-partnership-with-southern-europe-to-counter-chinas-bri/articleshow/65564128.cms?from=mdr.
Czerniak, A., & Blauth, K. (2016). The impact of foreign direct investment. Contribution to the Polish Economy in the Past Quarter Century. Polityka Insight.
Deloitte and Confederation of Indian Industry. (2014). Trade & investment relations between India and Central Europe: A study of opportunities. Deloitte Touche Tohmatsu India Private Limited and Confederation of Indian Industry (CII).
Department for Promotion of Industry and Internal Trade. (2020). Fact sheet on Foreign Direct Investment (FDI) from April, 2000 to June, 2020, Quarterly Fact Sheet, Ministry of Commerce and Industry. Retrieved November 8, 2020 from https://dipp.gov.in/sites/default/files/FDI_Factsheet_June20_20October2020.pdf.
Dorożyński, T., & Kuna-Marszałek, A. (2016). Investment attractiveness: The case of the Visegrad Group countries. Comparative Economic Research, 19(1), 119–140.
Dygas, R. (2020). Determinants of foreign direct investment outflow from India to Poland. International Journal of Management and Economics, 56(2), 109–117.
Elteto, A., & Sass, M. (2015). Outward FDI policies in Visegrad countries. Country report—Hungary. Bulletin of the Institute for Western Affairs, 179.
Embassy of India Prague, India-Czech Economic Relations. Retrieved September 15, 2020 from https://www.eoiprague.gov.in/docs/1594892647India-Czech%20Economic%20Relations%20(1).pdf.
Embassy of India Prague, List of Major Czech Companies in India. Retrieved September 15, 2020 from https://www.eoiprague.gov.in/docs/1594811118Annex-III%20%20List%20of%20major%20Czech%20companies%20in%20India.pdf.
Embassy of India, Hungary and Bosnia & Herzegovina, India Hungary-Relations. Retrieved September 15, 2020 from https://www.eoibudapest.gov.in/page/india-hungary-relations/.
Ernst & Young. (2020, October 12). India amongst the top three choices for future investments: CII-EY FDI Survey. Press release. Retrieved October 20, 2020 from https://www.ey.com/en_in/news/2020/10/india-amongst-the-top-three-choices-for-future-investments.
EY Attractiveness Survey. (2020). How can Europe reset the investment agenda now to rebuild its future?, Ernst & Young, May.
The Global Competitiveness Report 2019. (2019). World Economic Forum, Cologny/Geneva.
Gorynia, M., Nowak, J., & Wolniak, R. (2011). Outward foreign direct investment of Poland: Exploring geographic and industry trends and patterns. In Conference: 37th EIBA annual conference: Taking IB in Europe to the next level: Emerging issues, strategies and economies Bucharest. Retrieved October 20, 2020 from https://www.researchgate.net/publication/326261188_Outward_Foreign_Direct_Investment_of_Poland_Exploring_Geographic_and_Industry_Trends_and_Patterns.
Gubik, A. S., Sass, M., & Szunomár, Á. (2020). Asian foreign direct investments in the Visegrad countries: What are their motivations for coming indirectly. DANUBE: Law Economics and Social Issues Review, 11(3), 239–252.
Hungarian Investment Promotion Agency. (2017, April 7). Apollo Tyres Inaugurated their new plant in Gyöngyöshalász. Retrieved September 15, 2020 from https://hipa.hu/apollo-tyres-inaugurated-their-new-plant-in-gyongyoshalasz.
Hungarian Investment Promotion Agency. (2019, May 25). New investment of the Samvardhana Motherson Group in Hungary has been inaugurated. Retrieved September 15, 2020 from https://hipa.hu/new-investment-of-the-samvardhana-motherson-group-in-hungary-has-been-inaugurated.
India, MEA, India–Slovakia Relations. Retrieved September 15, 2020 from https://mea.gov.in/Portal/ForeignRelation/India-Slovakia_december_2018.pdf.
Indian Chamber of Commerce and Culture in the Slovak Republic, Slovakia Hub in India: Indo Slovak Startup Space. Retrieved September 15, 2020 from http://www.sbagency.sk/sites/default/files/slovakia-hub-booklet-a4_adf.pdf.
Jaguar Land Rover. (2018, October 25). Jaguar Land Rover opens manufacturing plant in Slovakia. Retrieved November 9, 2020 from https://www.jaguarlandrover.com/news/2018/10/jaguar-land-rover-opens-manufacturing-plant-slovakia.
Jędrzejowska, K. (2014). Economic transition in Poland and India: Not so different story? In V. Sakhuja, D. K. Upadhyay, & P. Kugiel (Eds.), India–Poland relations in the 21st century: Vistas for future cooperation (pp. 99–117). Vij Books.
Kearney. (2019). The 2019 Kearney global services location index. Retrieved October 20, 2020 from https://www.kearney.com/digital-transformation/gsli/2019-full-report.
Kugiel, P. (Ed.) (2016). V4 goes global: Exploring opportunities and obstacles in the Visegrad countries’ cooperation with Brazil, India, China and South Africa. Polish Institute of International Affairs.
Mackiewicz, A. (2015, June 15). Kto i gdzie inwestuje. Retrieved September 15, 2020 from https://india.trade.gov.pl/pl/indie/inwestycje/445,kto-i-gdzie-inwestuje.html.
Magdolna, S., & Vlokova, J. (2019). Just look behind the data! Czech and Hungarian outward foreign direct investment and multinationals. Acta Oeconomica, 69(S2), 73–105.
Mazur, G., & Takemura, M. (2020). The evolution of merchandise trade between the Visegrad Group countries and Japan in the 21st century. Journal of International Studies, 13(3), 9–24.
Mishra, R. (2019). An empirical analysis of the potential of FDI inflows in India. Journal of Mechanics of Continua and Mathematical Sciences, 14(5), 724–736.
Mishra, R., & Palit, R. (2020). Role of FDI on employment scenario in India. International Journal of Recent Technological Engineering, 8(6), 1481–1489.
Mohan, A. (2013, July 16). India and Central Europe: A road less travelled. Ministry of External Affairs, Government of India, Public Diplomacy. Retrieved October 20, 2020 from https://mea.gov.in/in-focus-article.htm?21946/India+and+Central+Europe+a+road+less+travelled.
OECD. (2001). Glossary of statistical terms, foreign direct investment. Retrieved October 20, 2020 from https://stats.oecd.org/glossary/detail.asp?ID=1028.
OECD. (2012). OECD international direct investment statistics 2012. OECD Publishing.
OECD. (2014). OECD international direct investment statistics 2014. OECD Publishing.
OECD. (2018). OECD international direct investment statistics 2018. OECD Publishing.
OECD. (2019). OECD international direct investment statistics 2019. OECD Publishing.
OECD. (2020). Foreign direct investment statistics: Explanatory notes. Retrieved September 15, 2020 from https://www.oecd.org/daf/inv/FDI-statistics-explanatory-notes.pdf.
PAIH. (2018). Indie Przewodnik po rynku. PAIH.
Plasteurope.com. (2019, January 4). UFLEX India's largest multinational flexible packaging maker to build new plant in Hungary. Retrieved September 15, 2020 from https://www.plasteurope.com/news/UFLEX_t241447/.
Prashant, P. (2020, August 7). SRF commissions new BOPET plant in Hungary. Retrieved September 15, 2020 from https://www.indianchemicalnews.com/chemical/srf-commissions-new-bopet-plant-in-hungary-5818.
Roman, T., Manolică, A., & Maha, L.-G. (2014). The dynamics of Indian FDI in Europe and its impact on Romanian–Indian relations. Current Science, 107(10), 1666–1672.
Rucinska, S., & Fecko, M. (2015). Foreign direct investment in Visegrad Group countries with the focus on service sector. Zeszyty Naukowe Państwowej Wyższej Szkoły Im Witelona w Legnicy, 17(4), 21–30.
Su, W., Zhang, D., Zhang, C., Abrhám, J., Simionescu, M., Yaroshevich, N., Guseva, V. (2018). Determinants of foreign direct investment in the Visegrad Group countries after the EU enlargement. Technological and Economic Development of Economy, 24(5), 1955–1978.
Szunomár, Á. (2018). Pull factors for Chinese FDI in East Central Europe. Centre for Economic and Regional Studies HAS Institute of World Economics, Working Paper No. 249 (2018), 1–20.
UNCTAD. (2020). World Investment Report (2020), International Production Beyond the Pandemic, United Nations, Geneva.
World Bank. (2019). Doing Business 2020 Report.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2021 The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.
About this chapter
Cite this chapter
Jędrzejowska, K., Wróbel, A. (2021). Indian Foreign Direct Investment in Central Europe. In: Jain, R.K. (eds) India and Central Europe. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-16-2850-4_9
Download citation
DOI: https://doi.org/10.1007/978-981-16-2850-4_9
Published:
Publisher Name: Palgrave Macmillan, Singapore
Print ISBN: 978-981-16-2849-8
Online ISBN: 978-981-16-2850-4
eBook Packages: Political Science and International StudiesPolitical Science and International Studies (R0)