| Poland, the largest central European country, has | | | | In addition, sectors such as electronics, banking, |
| made a successful transition from a centrally planned | | | | telecommunications, pharmaceuticals, tourism, |
| economy to a market driven economy. It was the | | | | warehousing and agri products should be further |
| first country in Central Europe to undertake economic | | | | explored by SMEs from both countries for expanding |
| reforms and initiate efforts to promote foreign trade. | | | | operations. |
| Today, Poland is ranked among the most successful | | | | Analysts are of the opinion that Poland provides an |
| transition economies in the world. Given the | | | | ideal gateway for Indian SMEs to foray into other |
| tremendous growth potential of the Polish market, | | | | thriving European markets such as Ukraine, Russia |
| several Indian SMEs are exploring new avenues to | | | | and Romania. Furthermore, the tax concessions and |
| establish trade linkages in Poland. | | | | other trading facilities offered by Poland are |
| Poland has maintained a steady gross domestic | | | | expected to attract many Indian SMEs in the near |
| product (GDP) growth in the past few decades. In | | | | future. |
| 2008, its GDP grew at around 5.3%.[i] The country's | | | | Addressing challenges |
| economic growth is attributed to its increasing private | | | | Although there is no ceiling on exports from India to |
| consumption, rise in corporate investment and steady | | | | Poland, the tariffs on imports of agricultural and |
| fund inflows from the European Union (EU). | | | | Industrial Products in Poland are significantly higher |
| Following its affiliation to the EU in 2004, Poland has | | | | than in other EU countries. |
| received substantial structural funds that have | | | | Moreover, Indian SMEs feel that there should be |
| provided a major impetus to its economy. | | | | direct shipping and air links between the two |
| Indo-Polish trade ties | | | | countries to facilitate increased an economic |
| Total bilateral trade between India and Poland has | | | | exchange between them. India and Poland are |
| grown by more than seven times from 1992 to 2007. | | | | currently looking in to options for starting direct |
| According to statistics, in 2008 India's export to | | | | flights between the two countries by the end of |
| Poland stood at US$767.44 marking a sharp rise from | | | | 2009. |
| US$699.67 in 2007. | | | | The governments of both countries realise the |
| India is a major exporter of coffee, tobacco, tea, | | | | importance of supporting the Indian as well as Polish |
| black pepper, cotton textiles, jute, pharmaceuticals, | | | | SMEs to bolster bilateral trade relations. To facilitate |
| auto parts, electronic goods and engineering products | | | | the growth of small and mid-sized companies in the |
| to Poland. On the other hand, Poland exports artificial | | | | two nations, the Indo-Polish Chamber of Commerce |
| resins, non-ferrous metals, machine tools and plastic | | | | and Industry (IPCCI) was formed in 2008. The |
| material to India. | | | | objective of this association is to safeguard and |
| Areas to be explored | | | | represent the economic interests of MSMEs in India |
| According to Industry Experts, the largely untapped | | | | and Poland and enhance bilateral trade between the |
| Polish market is a lucrative trade and investment | | | | two countries. |
| destination for Indian SMEs. Industries including | | | | With governments of both countries providing a |
| energy, iron and steel, machinery, food, mining and | | | | major thrust to the SMEs on both sides, Indian SMEs |
| textiles offer ample opportunities for mutual | | | | can explore new avenues of growth in Poland. |
| cooperation and growth. | | | | |