India and Slovakia deepen economic partnership as bilateral trade hits record high

New Delhi: From automobiles and engineering to railways, renewable energy, and information technology, India and Slovakia are steadily expanding their economic partnership, with bilateral trade reaching an all-time high and investments flowing in both directions.

The growing economic relationship between India and Slovakia has emerged as a significant pillar of bilateral ties, reflecting the broader strengthening of cooperation between the two countries. Over the last few years, trade volumes have surged, investment activity has intensified, and both nations have expanded collaboration across manufacturing, mobility, technology, infrastructure, and industrial development.

The momentum was further reinforced through the India-Slovakia Joint Economic Committee (JEC), the primary institutional mechanism overseeing economic cooperation between the two countries. Established in 1994 during the visit of former Slovak Prime Minister Jozef Moravcik to India, the JEC held its first meeting in Bratislava in 1995. The latest, 12th session of the committee was convened in New Delhi in February 2025, bringing together government officials and business leaders from both nations. A Slovak business delegation also participated in the 26th International Engineering and Technology Fair in New Delhi, highlighting growing commercial engagement.

Bilateral Trade Reaches Historic Levels

According to the Ministry of External Affairs (MEA), trade between India and Slovakia has witnessed remarkable growth over the past five years. As per the Slovak Statistical Office, total bilateral trade crossed the US$1 billion mark for the first time in 2024, reaching approximately US$1.38 billion. The upward trajectory continued in 2025, with trade expanding by nearly 28 percent to an unprecedented US$1.81 billion.

Indian exports to Slovakia increased substantially from US$419 million in 2021 to US$1.53 billion in 2025, while imports from Slovakia rose from US$165 million to US$284 million during the same period.

The MEA said that the growth has been driven largely by India’s strong manufacturing exports, particularly automotive components and engineering products. Vehicle parts such as gearboxes and spark-ignition engines account for a major share of Indian shipments to Slovakia. Other key exports include machinery, mechanical appliances, mobile phones, pharmaceuticals, electrical equipment, garments, footwear, and knitted apparel.

On the import side, Slovakia’s globally recognized automotive industry continues to dominate exports to India. Passenger cars and automobile components constitute the largest category of imports, followed by machinery, electrical equipment, rubber products, glassware, steel products, ceramics, and industrial equipment.

The trade expansion reflects the increasing integration of supply chains between the two economies, particularly in the automotive and engineering sectors.

Tata Group Leads India’s Investment Footprint in Slovakia

Indian companies have established a significant industrial presence in Slovakia, particularly in the automotive sector.

The flagship Indian investment remains Jaguar Land Rover’s manufacturing facility in Nitra, established by the Tata Group. With an investment of approximately €1.4 billion, the state-of-the-art plant began operations in 2018 and has become one of Slovakia’s largest industrial projects. The facility employs more than 4,400 people and produces the Land Rover Discovery and Defender models, with an annual manufacturing capacity of 150,000 vehicles.

The Tata Group has further expanded its Slovak footprint through Tata AutoComp Systems, which acquired the Slovak operations of IAC Group through its UK subsidiary Artifex Interior Systems. The facility near Bratislava manufactures automotive interior components and now operates under the Artifex Systems Slovakia banner.

India’s IT sector has also entered the Slovak market. Tata Consultancy Services (TCS) established operations in Bratislava in 2017 and provides information technology services, particularly for Jaguar Land Rover’s European operations.

Indian Manufacturing Giants Expand Presence

Several leading Indian industrial groups have strengthened their position in Slovakia through acquisitions and strategic investments.

In 2020, National Engineering Industries (NEI), part of the CK Birla Group, acquired Slovak bearing manufacturer Kinex Bearings, a company with a long history in engineering and industrial production. Kinex operates manufacturing facilities in Bytča and Kysucké Nové Mesto and exports bearing products to more than 80 countries.

The automotive components sector has witnessed similar expansion. Dhoot Transmission, based in Aurangabad, acquired TFC Cable Assemblies in Slovakia, enhancing its capabilities in wiring harnesses and cable systems for the automotive industry.

The Samvardhana Motherson Group, one of India’s largest automotive component manufacturers, strengthened its Slovak presence following its acquisition of Germany’s Peguform Group. The Slovak subsidiary now operates as SMP Automotive Solutions Slovakia and supplies automotive interior systems to major manufacturers.

Meanwhile, Alicon Group expanded into Slovakia through the acquisition of Illichmann Castalloy’s operations, which specialize in aluminum casting products used across industrial sectors.

India’s growing interest in future mobility technologies is also visible through Amara Raja Energy & Mobility, which has acquired a stake in Slovak battery technology company InoBat, reflecting increasing cooperation in electric vehicle ecosystems.

Slovak Companies Expand Investments in India

Investment flows are increasingly becoming two-way, with Slovak firms identifying India as a major growth market.

One of the most prominent examples is Tatravagónka, Europe’s leading freight wagon manufacturer. The Slovak company acquired a 26 percent stake in Kolkata-based Jupiter Group and has since expanded its manufacturing footprint in India. In April 2025, the joint venture established India’s first private-sector forged rail wheel and axle manufacturing facility in Odisha’s Khordha district, marking a major milestone in railway manufacturing.

The renewable energy and biofuels sector has also attracted Slovak investment. In 2023, Slovak-based Envien Group partnered with Zuari Industries to establish a grain-based ethanol plant in Uttar Pradesh. The facility contributes to India’s ethanol blending programme and supports the country’s energy transition goals.

Envien has further expanded its India engagement through its freight wagon subsidiary Nymwag, which entered into a joint venture with Texmaco Rail. Construction of a new manufacturing plant in Kolkata began in 2024, with plans to produce up to 2,500 freight wagons annually.

Technology and Innovation Drive New Areas of Cooperation

The India-Slovakia economic relationship is increasingly extending beyond traditional manufacturing.

Slovak technology company MicroStep-MIS, known for its monitoring and information systems, established operations in Bengaluru and has supplied meteorological systems to dozens of Indian Air Force airbases.

Similarly, Furbify, a Slovak company specializing in refurbished computers and circular economy solutions, entered the Indian market through the incorporation of Furbify India Pvt. Ltd. in 2024.

Slovakia’s expertise in specialized industrial machinery is also finding demand in India. VIPO, a leading manufacturer of tyre industry equipment, has supplied machinery to major Indian tyre producers including Apollo Tyres, MRF, JK Tyre, CEAT, and BKT. The company expanded its presence further by establishing Vipo India Pvt. Ltd. in Delhi in 2025.

Another Slovak company, Dajky, entered India to provide artificial sports surfaces for cricket facilities, educational institutions, and defence training grounds, reflecting growing cooperation in sports infrastructure.

Human Resource and Financial Sector Engagement

The partnership is also expanding into human resources and financial services.

Slovak HR company Edgar Baker established a subsidiary in Noida to support executive recruitment and skilled workforce placement. Meanwhile, Slovak investor Martin Kusik, through his investment vehicle Odyssey 44, acquired a significant stake in IDFC First Bank, underlining investor confidence in India’s financial sector.

Industrial manufacturer GMP Slovakia, a global producer of steel reels and handling equipment for the wire and cable industry, has operated a manufacturing facility in Nashik since 2013, serving both Indian and international markets.

A Partnership Poised for Further Growth

The rapid expansion of trade and investment demonstrates the growing strategic importance of India-Slovakia economic ties. While automotive manufacturing remains the backbone of the relationship, new areas such as renewable energy, electric mobility, railways, digital technologies, defence-related manufacturing, logistics, and advanced engineering are creating fresh opportunities for collaboration.

With bilateral trade approaching the US$2 billion mark and investment projects continuing to expand in both countries, India and Slovakia are increasingly positioning themselves as long-term economic partners. The combination of India’s large market and manufacturing capabilities with Slovakia’s industrial expertise and technological strengths is expected to drive the next phase of growth in this evolving partnership.

As both nations seek to diversify supply chains, strengthen industrial cooperation, and promote innovation-led growth, the India-Slovakia economic relationship appears set for even greater expansion in the years ahead.

(DD News)