Prime Minister Narendra Modi has gone to Canada to participate in the G7 Summit. After this, on Wednesday, he will leave on a historic visit to Croatia. This will be the first Croatia tour of any Prime Minister of India. PM Modi’s visit to Croatia will open new avenues of mutual cooperation between the two countries as well as Karabori relationships are also expected to be strengthened.
Emerging strength of energy sector
Croatia has not traditionally been a partner in Energy and IT sector for India. But in recent years, this visit of PM Modi is considered important due to progress in relations between the two countries and changes in the global geopolitical landscape. Situated on the banks of the Adriatic Sea in southeast Europe, this country is becoming an emerging force in the energy sector. Especially in terms of gas hub, an energy importer like India can be important for the country with Croatia.
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After the Russia-Ukraine War, Europe is looking for alternative sources to reduce dependence on Russian gas. Croatia’s LNG terminal plays an important role in bringing supply to Europe from Qatar, US and other gas exporting countries. India, which is a major importer of LNG, can reach European gas markets through Croatia and increase cooperation in energy trade.
Entry gate can be made in Europe
India is increasing dependence on natural gas for its energy needs and Croatia can prove to be very helpful in it. The gas trade agreement with Croatia India can reach the energy markets in Central and Eastern Europe. Indian companies, such as Gail and Indian Oil Corporation (IOCL), are looking for new destination for LNG supply globally. Croatia’s LNG terminal may be an entry gate of gas trade in Europe for India.
Croatia is a member of the European Union (EU), and is interacting on the Indo-EU Free Trade Agreement (FTA). Energy cooperation with Croatia in Arsa will help India strengthen its position in European markets. India needs alternative partners to reduce dependence on traditional gas suppliers like Middle East and Russia and in such a situation Croatia’s strategic place makes it an important intermediary.
New whereabouts of Indian companies?
Apart from this, India has become the powerhouse of the Global IT industry and the partnership of countries like Croatia can be very important for it, where many startups and tech companies are emerging in recent times. Agreement with Croatia companies in areas such as software development, cyber security and artificial intelligence (AI) can prove to be a new step in this direction.
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On the other hand, Croatia has high educated and technically skilled workforce, which is attractive for India’s IT companies. Indian companies such as Infosys, TCS, and Wipro are expanding in Europe and Croatia can become an important destination. India and Croatia have signed several agreements to promote economic and technical cooperation in recent years. In 2020, both countries discussed digital changes and startup cooperation, indicating strengthening partnership in the IT sector.
India and Croatia have had a bilateral trade of about 306 million dollars last year. India exported $ 250 million in Croatia, while Croatian investment in India was close to $ 55 million. Let us know that the European country Croatia has a population of about 40 lakhs and in terms of area, it is only slightly larger than the state of India, Uttarakhand. Hum, the world’s smallest city, is located in this country where only 20-30 people live. For this reason, Hum’s name is recorded in the Guinness Book as the smallest city.