New Delhi [India], October 12 (ANI): President of the Confederation of Industry of the Czech Republic Jan Rafaj on Monday described the proposed India-European Union Free Trade Agreement (FTA) as a major breakthrough that could significantly accelerate trade and reduce operational burdens for businesses operating between the two markets.

Emphasising the potential impact of the free trade pact, Rafaj highlighted that the agreement acts as a crucial turning point for bilateral commercial relations.

'Yes, this is the opening point, because you know, this could really change our partnership. As you know, before, there were some obstacles for the business, giving too big a burden. But now we can really start the business much faster and with lower barriers,' he told ANI. 

Addressing global instability, including conflicts such as Russia-Ukraine, US-Iran, and Israel-Iran, Rafaj expressed confidence that private-sector partnerships can help insulate businesses from international market turmoil.

'I think exactly those partnerships which we are just now making here are the crossing over these troubles which are making others in the global markets,' he observed.

Rafaj made the remarks following a Memorandum of Understanding (MoU) signed between the apex industry confederations of India and the Czech Republic.

Clarifying the scope of the agreement, he explained that the initiative is designed to serve as a supportive bridge for companies entering each other's home markets.

'The MoUs is, in principle, between the two Confederation of Industries in Czechia and in India,' Rafaj said. 'We are big partners. We are, in principle, the voice of industries in both the countries, and we know the country very well. We know how to start a business. We know who are the right partners, who are the financial institutions who could support. Means that we are the right gateway for the businesses.'

He underscored that the agreement will establish a foundation for closer institutional collaboration and business facilitation.

'Definitely, it should be the platform for closer cooperation. We should prepare the bridge for Czech and Indian companies to open the markets, Indian in Czech and Czech in India. We should be, as a sheltering organisation, those who could advise right partners, who should give them the first advices and so on,' he noted.

Detailing the technological and industrial equipment the Czech Republic offers to India and vice versa, Rafaj pointed to a balance of both heavy hardware and advanced software capabilities.

'We have both. We have the hard technologies like the trucks, heavy lorries, we have the weapons as well, you know, but even the radar technologies, drones technologies,' Rafaj explained. 'But on the other side, we have even the software parts, meaning solutions for cybersecurity and all this stuff. And semiconductors also as well, you know, the big companies like onsemi or Thermo Fisher are operating in Czech Republic.'

The India-EU FTA negotiations have been a key component of efforts to deepen economic ties between the two sides, with the agreement expected to provide greater market access and strengthen trade and investment flows.

The India-EU FTA was jointly announced by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen on January 27 this year during the 16th India-EU Summit in New Delhi.

The announcement followed the resumption of negotiations in 2022 after years of discussions aimed at establishing a comprehensive and balanced trade partnership between India and the European Union.

The proposed agreement assumes significance amid growing economic ties between the two regions. In 2024-25, bilateral trade in goods between India and the EU stood at USD 136.54 billion, with India's exports to the bloc valued at USD 75.85 billion and imports at USD 60.68 billion. 

Trade in services between India and the European Union reached USD 83.10 billion in 2024. (ANI)