Indo-Croatian SMEs Taking Bilateral Trade Ties to Next Level

Prior to the disintegration of Yugoslavia, Croatia was economically one of the most prosperous countries in Europe. However, in recent times, the country has dealt with recessionary pressures and high unemployment rates. With the Croatian government laying thrust on achieving macroeconomic stability and economic growth, this European country has become an emerging destination for trade and investment.

Manufacturing, fishing, oil and gas, tourism and textiles are the key growth drivers of the Croatian economy. In terms of exports, Croatia is a major exporter of textile yarns, crude minerals, lubricants and electrical equipments to India. Alternately, India's export basket to Croatia includes pharmaceuticals, organic and inorganic chemicals, readymade garments, metals, leather products and wood.

Avenues of growth

Although Indo-Croatian trade volume is yet to gain significant momentum, Indian SMEs have identified some highly profitable sectors for investment in Croatia.

Croatia's service sector is the backbone of its thriving economy. This sector accounts for nearly 60% of Croatia's GDP. Within this sector, tourism and retail are the attractive segments for enhancing the scope for trade and investment.

In recent times, Croatia's scenic beauty and historical heritage has attracted several tourists. Tourist inflow to the country stood at around 57,103 million in 2008. Croatia's burgeoning tourism industry has created huge demand for luxury hotels, spas, resorts and budget hotels. Indian hospitality players can therefore grab a significant share in Croatia's tourism industry by catering to the increasing demand for hotels and similar options.

Indian IT SMEs are also exploring possibilities of setting up their offshore delivery centres in Croatia to cash in on its business-friendly environment.

To boost bilateral between the two countries, the Indian and Croatian governments have initiated efforts to identify areas for mutual cooperation. The Indian government has extended the Indian Technical and Economic Cooperation (ITEC) Programme to Croatia. Similar efforts will play a key role in cementing Indo-Croatian relations in the near future.

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David Parks is a well known author and has written articles on Business Trade Leads, B2B Portal, Trade Shows Directory, suppliers, Manufactures and many other subjects.