Bilateral Relations

INDIA-CROATIA RELATIONS

Background

Relations between India and Croatia have been friendly since the days of the former Yugoslavia (SFRY). Marshal Tito, a Croat, who ruled Yugoslavia for more than three decades, maintained close relations with the then Indian leadership. Nehru and Tito were also pioneers of the Non-Aligned Movement. Croatia dominated bilateral trade relations accounting for more than two-thirds of trade between India and the former Yugoslavia. This included large scale purchases of Croatian ships by India in the 1970s and 1980s.

India recognized Croatia in May 1992 and established diplomatic relations with it on 9 July 1992. Croatia opened its resident mission at New Delhi in February 1995. The Indian Mission in Zagreb was opened on 28 April 1996, and upgraded to Ambassadorial level in January 1998.

Exchange of Visits

VVIP Visit

(a) From the Croatian Side

Former Croatian President Stjepan Mesić, accompanied by Mrs. Milka Mesić, paid a State Visit to India from 12-16 November 2002. In the Joint Statement issued during the visit, Croatia had expressed support for India’s claim for permanent membership of the UNSC.

(b) From the Indian Side

Vice-President M. Hamid Ansari accompanied by Mrs. Salma Ansari visited Croatia from 9-11 June 2010 at the invitation of Croatian President Ivo Josipovic.

Ministerial Level Visits

(a) From the Croatian Side

Dr. Zvonimir Separović, Foreign Minister (April 1992).
Deputy Prime Minister and Foreign Minister, Dr. Mate Granić (April 1995).
Nenad Porges, Minister of Economy (November 1998).
Bozo Biškupić, Minister of Culture (March 1999).
Dr. Goran Granić, Deputy Prime Minister (November 2000).
Foreign Minister Tonino Picula (May 2001).
Ms. Pave Zupan Rusković, Minister of Tourism (September 2003).

(b) From the Indian Side

Shri Pranab Mukherjee, Commerce Minister (September 1994).
Dr. B.B. Ramaiah, MOS (Commerce) - September 1997.
Shri Shatrughan Sinha, Minister of Shipping (August 2003).
Shri Digvijay Singh, Minister of State for External Affairs (September 2003).
Smt. Bhavnaben Chikhalia, Minister of State for Tourism & Culture and Parliamentary Affairs (October 2003).
Shri Kapil Sibal, Minister of Science & Technology and Earth Sciences (February 2007).
Shri Anand Sharma, Minister of State for External Affairs (September 2007).

Parliamentary Delegations

(a) From the Croatian Side

Mr. Vladimir Šeks, the then Acting President of the Croatian Parliament (Sabor) - March 27 to April 3, 1999.
Deputy Speaker of the Croatian Parliament, Tomac (January 2003).
Ms. Marija Lugaric, a Member of Parliament (January 2007).
Dr. Furio Radin, Member of Parliament and Chairman, Committee on Human and National Minority Rights (February 2008).
Mr. Luka Bebic, Speaker led a 6-member Parliamentary delegation to India from 6-10 March 2010.

(b) From the Indian Side

Shri P.A. Sangma, Speaker, Lok Sabha (July 1997).
Shri Manohar Joshi, Speaker, Lok Sabha (July 2002).

Foreign Office Consultations

The Protocol on Foreign Office Consultations (FOCs) was signed in April 1995, during the visit to India of Dr. Mate Granić, Croatian Deputy Prime Minister and Foreign Minister. So far, eight FOCs have taken place alternatively in Zagreb and New Delhi. The last round was held in Zagreb on 24 February 2010.

Bilateral Agreements

(a) Agreements:

Trade and Economic Cooperation Agreement (1994).
Maritime Transport Agreement (1997).
Agreement on Cooperation in the field of Culture, Science and Technology, Education and Sports (1999).
Agreement on cooperation between the Diplomatic Academy of the Ministry of Foreign Affairs of Croatia and the Foreign Service Institute (FSI), Ministry of External Affairs (2000).
Air Services Agreement (2000).
Bilateral Investment Protection Agreement (2001).
Agreement on cooperation in the Fight against International Illicit Trafficking of Narcotic Drugs, Terrorism etc. (2001). First meeting of the Joint Committee held in Zagreb (2004).
Agreement on Agricultural Cooperation (2002).
Agreement on exemption of visa requirement for holders of Diplomatic and Official/Service Passports (2007).
Agreement on Cooperation in Health and Medicine (June 2010).

(b) MoUs:

MoU between the Croatian Bank for Reconstruction and Development (HBOR) and the EXIM Bank of India (2000).
MoU between Export Credit & Guarantee Corporation of India Ltd. (ECGC) and the Croatian Bank for Reconstruction and Development (HBOR (2002).
MoU on cooperation in Information Technology: signed between Electronics & Computer Software Export Promotion Council of India and the Croatian Information Technology Society (2004).
Exchange Programme in the field of Culture for 2005-07 (2005).
Programme of Cooperation in Science and Technology for 2005-08 (2005).
Educational Exchange Programme (2006).
Programme of Cooperation in the field of Culture for 2010-12 (June 2010).

Economic Relations

The two-way trade of US $ 156.98 million in 2009 consisted largely of India’s exports, which include textiles (yarn, linen, cotton fabrics and readymade garments), leather and footwear products, coffee, tobacco, organic/inorganic compounds, carpets and floor coverings, crude minerals, antibiotics and spices, tractors, passenger vehicles and auto spare parts. Imports from Croatia are electrical machinery, turbines, electrical equipment, measurement and control instruments, pharmaceuticals (antibiotics), heating and cooling equipment, and machinery.

Figures of India’s trade with Croatia are as follows:(In US$ million)

(In US$ million)
Year	2003	2004	2005	2006	2007	2008	2009
Exports from India	44.40	47.92	58.64	79.16	108.37	136.99	124.55
Imports from Croatia	8.30	2.15	3.06	3.78	7.6	10.04	32.43

Source: Croatian Central Bureau of Statistics

There is an India-Croatia Joint Committee on Trade and Economic Cooperation at the official level which last met in Zagreb in March 2009. Both sides agreed to expand trade and economic cooperation in the traditional areas as well as in the emerging areas of mutual strength. Thirteen sectors viz. textiles, leather & leather products, petrochemicals and pharmaceuticals, shipbuilding, science & technology, information technology, telecommunications, tourism, oil and gas, railways, engineering and construction, electrical equipment and food processing industries etc. have been identified for cooperation.

In IT services, companies such as Infosys are getting a toe-hold in specialized areas in telecom and financial services, but need to overcome language issues. Croatia’s restrictive visa policy will also be a constraint.

The only Croatian investment in India is by Pliva, the regional major in the pharmaceutical sector, which has set up an R and D facility in Goa in 2006. From India, the only investment of significance in Croatia is by the Mumbai based ACG Worldwide in a capsule manufacturing company in Varazdin county. As Croatian businesses adjust to EU accession, other niche opportunities for Indian investors could come up in pharmaceuticals, hotels / restaurants, and traditional spas. In overall terms, however, prospects remain limited as the Croatian market is small and its costs higher compared to other countries in the region, such as Bulgaria, Hungary and Romania.

India’s Export Promotion Council for Handicrafts participated with 11 companies in the Zagreb International Autumn Fair held from 15-19 September 2009. Two Master Craftsmen performed live demonstration of wood carving and Tarkashi crafts during the fair.

Science & Technology

In terms of Agreement on Science and Technology signed in 1999 and the Programme of Cooperation in Science and Technology (2005-2008) in May 2005, the First Joint Committee Meeting was held in April 2006 in New Delhi and nine projects have been identified for joint cooperation. During the visit of Shri Kapil Sibal, Minister for Science & Technology and Earth Sciences to Zagreb on (February 2007), a Joint Declaration was signed for setting up a joint fund of Euro One Million with equal contribution from both countries to further cooperation in select fields viz. environment, oceanography, biotechnology, pharmacology, nanotechnology and ship building. It was also agreed to collaborate in the applications of GIS technologies especially in coastal areas, and to work out joint projects under the Framework Programme of the EU. Several R and D projects have since been jointly identified.

ITEC/ FSI

Indian Technical & Economic Cooperation (ITEC) Programme has also been extended to Croatia. Since 2000, twelve Croatian nominees have undergone ITEC training in India,

An Agreement on Cooperation has been signed between the Diplomatic Academy of Croatia and the Foreign Service Institute (FSI) of the Ministry of External Affairs, New Delhi, in January 2000. Thirteen Croatian diplomats have so far attended various courses. Shri Santosh Kumar, Secretary & Dean (FSI) attended the conference of Deans at Dubrovnik, Croatia, in September 2003. The Director of the Croatian Diplomatic Academy also visited India for discussions with FSI, in October 2006.

Consular

Croatia has fairly restrictive visa policies, which if relaxed, will contribute to future development of bilateral relations. A bilateral agreement on visa exemption for Diplomatic and Official passport holders between the two countries was signed in September 2007.

Cultural Cooperation

There have been active cultural exchanges, with visits of many cultural troupes during the last few years. A few NGOs are quite active in promoting Indian culture in Croatia.

Indian community

The Indian community in Croatia is miniscule. There are about a dozen PIOs most of whom are engaged in small businesses, about two dozen NRIs and 6 Infosys personnel working on short term basis in the Croatian Postal Bank.