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22nd August 2024 (11 Topics)

India_Poland Relations

Context

Prime Minister Narendra Modi is on his three-day visit to Poland and Ukraine. Prime Minister Modi’s visit to Poland is the first visit of an Indian PM to Poland in 45 years since Morarji Desai’s Warsaw visit in 1979. The timing of this visit coincides with the 70th anniversary of diplomatic relations between India and Poland.

India-Poland Relations (Chapters of history)

  • Chapters of history: During World War II, the Maharaja of Jamnagar (Jam Sahab Digvijay of Nawanagar) provided refuge to several hundred Polish women and children trying to reach the West, sheltering them on his estate in Gujarat for several months.
    • Jam Saheb, who is referred to as ‘Good Maharaja’ in Poland, had provided refuge in his kingdom at a place called
    • Similarly, a Polish camp was set up in Valivade in the Kolhapur Presidency (now in Maharashtra), ruled by Bhosale Chatrapati, during the war.
  • In 1944, Indian and Polish soldiers fought together in the Battle of Monte Cassino, Italy, against Nazi Germany. It was one of the toughest battles fought by Indian soldiers during the Second World War.

How are the relations in the present times?

  • India and Poland established diplomatic relations in 1954.
  • Education: Today, Polish universities educate thousands of students from India.
  • Tourism and business are growing in both directions, with Indian companies investing in Poland, particularly in the IT, biotechnology, electronics, and packaging sectors. In 2023, these companies employed about 10,000 Polish workers and invested over US$ 3 billion.
  • Poland is also home to a small Indian community. About 10,000 to 15,000 Indians work in IT, finance, business, and academic institutions in the European country
  • Economic Cooperation
    • Technological and Industrial Links: Southern Indian States of Karnataka, Kerala, and Tamil Nadu are pivotal centers for modern technology and industry. Tycoons like Infosys and Wipro have established service centers in Poland, which significantly contribute to job creation and technology transfer.
    • Shipbuilding and Port Industry: South India also has a robust shipbuilding industry, with critical ports located in Maharashtra, including Mumbai, which is the economic and financial hub of India. Mumbai handles 90% of imports from European Union The Reliance Group has a long history of trade with Poland dating back to the 1970s.
    • Trade and Investment Growth: Indian companies from Gujarat and Haryana have established trade and investment cooperations with Poland, notably in the dairy and automotive industries.
    • Polish Investments in India: India is the second-largest market for Polish foreign direct investments in Asia.
    • Current Trade Relations: Trade between Poland and India has shown notable progress, although it has yet to reach its full potential.
      • In 2019, India was Poland’s 28th largest trading partner, ranking 40th in exports (0.3%) and 25th in imports (0.8%).
      • By 2021, bilateral trade reached USD 4.3 billion, a significant year-on-year increase of 57%. Exports from Poland to India reached EUR 1.5 billion, while imports totaled EUR 3.868 billion in the following year.
      • The EU is India's largest trading partner, accounting for €124 billion worth of goods trade in 2023, or 12.2% of total Indian trade, topping the USA (10.8%) and China (10.5%).

Why PM Modi’s Poland Trip Matters?

  • Prime Minister Narendra Modi's visit to Warsaw and Kyiv comes at a crucial time, amid the ongoing war between Russia and Ukraine.
  • India, which has historically enjoyed friendly relations with Moscow, has maintained a neutral stance on the conflict. Modi’s notable declaration in 2022—“This is not an era of war”—emphasized India's commitment to diplomacy and dialogue.
  • Poland’s Strategic Role: Poland, a prominent member of the European Union (EU), has been a staunch supporter of Ukraine and is heavily investing in its military capabilities, with a planned expenditure of 4.12% of its GDP on defense this year, according to NATO estimates.
    • Poland's role in European security, particularly on NATO’s eastern flank, makes its strategic position significant for India.
  • Impact on Bilateral Relations: Modi's visit is expected to invigorate the historically dormant relations between India and Poland. This high-level engagement is anticipated to enhance bilateral ties, leveraging Poland’s strategic location and defense modernization efforts to benefit both nations.
  • The visit underscores India's heightened participation in matters involving Europe and the middle-east. In both the Russia-Ukraine conflict and Israel's war on Hamas, PM Modi has played the role of a peacemaker.
  • Shift in India’s policy: For decades, India's policy was to maintain distance from all countries. The situation has now changed. Today, India's policy is to maintain close ties with all countries and to connect with everyone.
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