Polish – Indian trade

India is becoming an increasingly promising destination for Polish companies. Dynamic economic development, gradual liberalization and facilitation for foreign investors create a favourable business climate.

Historically, trade between Poland and India has been moderate and has remained below its potential, especially when compared to India’s relations with the largest economies of the European Union. Nevertheless, in recent years, there has been a gradual development of mutual relations.

Trade and investment structure

The intensification of business contacts is particularly visible in the technology industries, including IT and ICT services, as well as in the machinery, electromechanical and engineering services sectors. Trade turnover in 2024 amounted to $5.8 billion, an increase of 1.4 percent compared to the previous year.

Poland, like the entire European Union, has a trade deficit in relations with India – exports in 2024 reached USD 1.44 billion.

Polish exports were dominated by: coke and semi-coke, waste and scrap of cast iron and steel, turbojet engines, synthetic rubber, albumin, ceramic products for laboratory purposes, fresh apples, carbon electrodes, as well as medical instruments and devices.

Polish imports from India in 2024 reached a value of USD 4.36 billion. Mainly telephony and telegraphy equipment, diesel, medicines, footwear, clothing, tobacco and ceramics were imported.

Polish investments in India

According to NBP data, the value of direct investments of Polish companies in India in 2023 amounted to over PLN 80.6 million (approx. USD 19.2 million). Many Polish entities reinvest the generated profit in India instead of transferring it back to the country, which enables further development of local projects and strengthens the presence of Polish companies on the Indian market. The total value of Polish investments in India in the years 2011–2023 reached approximately PLN 1.41 billion (approximately USD 335 million).

India is the second largest market in Asia when it comes to Investments from Poland.

Both manufacturing and technology companies are present in India. The most active are TZMO’s factories and logistics centres in Tamil Nadu, the Can-Pack plant producing metal packaging in Aurangabad, Geofizyka Toruń, Famur Group and Solaris, as well as Ekolog operating in the waste to energy sector. The Boryszew Group operates a factory of air conditioning systems for cars in the state of Karnataka, ICEA Group offers services for the e-commerce sector, while Elimen Group supplies advanced electric drives, the license of which has been taken over by an Indian company producing electric motors for vehicles.

Among the countries with the highest investment value in India, the United States (17.9 percent of total investments) are in first place, followed by Mauritius (14.9 percent), the United Kingdom (14.19 percent), Singapore (13.2 percent) and the Netherlands (13.02 percent).

Challenges and prospects for development

Economic cooperation between Poland and India focuses on sectors that require advanced knowledge and innovation, including technology and industrial sectors. Polish companies present on the Indian market can benefit the most from the reduction of FTA duties and the reduction of non-tariff barriers, but this market requires long-term commitment. Some industries are exposed to strong cost competition, which means that the effective implementation of protective mechanisms and the skilful use of new trade opportunities will be crucial for the further development of economic relations.

Sources:

• Serwis Rzeczpospolitej Polskiej.gov.pl
• PFR TFI – artical „Indie – daleko, ale coraz bliżej” (pfrtfi.pl)
• Export Intelligence

Translated by IDC

JL