India-Poland Strategic Partnership: A New Era of Bilateral Relations

India and Poland have elevated their bilateral relations to the level of "strategic partnership". The milestone was held during Indian Prime Minister Sh. Narendra Modi’s historic visit to Poland from August 21-22’24, at the invitation of Polish Prime Minister Donald Tusk. Coinciding with the 70th anniversary of diplomatic relations between the two countries, the visit marks a new chapter in India-Poland relations and paves the way for enhanced cooperation in various fields.

The foundation of this strategic partnership is built on a rich history of diplomatic relations spanning seven decades. Both countries share the same values ​​of democracy, freedom and commitment to a rules-based international order. These shared principles, coupled with historical ties, form the cornerstone of the growing bilateral partnership between India and Poland.

Addressing the Indian community in Warsaw, Prime Minister Modi highlighted the long-standing tradition of learning and understanding between the two countries. He cited examples such as the Bhagavad Gita and the Upanishads cited in the vast library of the University of Warsaw, and the study of Tamil, Sanskrit and other Indian languages ​​in Polish educational institutions. This cultural exchange highlights the depth of India-Poland relations.

A significant highlight of Prime Minister Modi's visit was his address to the Indian community in Warsaw. This event not only showcased the strong people-to-people ties between the two nations but also provided insights into India's global vision and domestic achievements.

Five-Year Action Plan (2024-2028)

To implement the Strategic Partnership effectively, India and Poland have agreed on a comprehensive five-year Action Plan for 2024-2028. This plan outlines specific steps and initiatives across various domains including political dialogue and security cooperation ; trade and investment; climate, energy, and Technology; collaboration on sustainable solutions; clean coal technologies, advanced mining systems, and space cooperation; transport and connectivity; counter-terrorism; cyber security; health; and cultural and educational exchange.

Key Aspects of the Strategic Partnership

1. Political Dialogue and High-Level Contacts: Both leaders stressed the importance of regular high-level contacts to deepen bilateral political cooperation. It was agreed to maintain frequent contacts between foreign ministers and to use bilateral and multilateral forums in these negotiations. An annual political dialogue at deputy ministerial level has been proposed to maintain communication and cooperation.
2. Economic Cooperation and Trade: Recognizing the potential for economic growth, both sides agreed to intensify bilateral economic relations, encourage trade and investment development, and explore new areas of mutual benefit. The Joint Commission on Economic Cooperation will play a crucial role in facilitating these objectives. Areas identified for expanded cooperation include technology, agriculture, connectivity, mining, energy, and environment.
3. Cooperation in Defense and Security : A major focus of the strategic alliance is improving cooperation in the defence industry. Both countries committed to making full use of the joint working group for defence cooperation and other bilateral institutions that are currently in place. The next round of this working group is scheduled for 2024, signaling the importance placed on this aspect of the partnership.
4. Sustainable Development and Climate Action: Both leaders agreed on the significance of collaboration in climate action projects, acknowledging the urgent problems presented by climate change. In an effort to demonstrate its support for international climate initiatives, India urged Poland to think about joining the Coalition for Disaster Resilient Infrastructure (CDRI) and the International Solar Alliance (ISA).
5. Interpersonal Relationships and Cultural Exchange: Expanding collaboration in science, research, culture, education, and health was agreed upon by both parties. They concurred to work on an agreement for the teaching of Polish in several Indian universities, and they encouraged initiatives to foster relationships between academic institutions.
6. Cooperation through Digital and Cyber security: Acknowledging the pivotal role that digitalization plays in social and economic advancement, both countries decided to strengthen their bilateral cyber security cooperation. The aim is to improve stability and confidence in the digital sphere between the two nations.
7. Connectivity and Infrastructure: The leaders welcomed the commencement of direct flight connections and stressed the need for further expansion to new destinations. Maritime cooperation and the development of infrastructure corridors were also highlighted as areas of focus.

Global and Regional Perspectives

The strategic partnership between India and Poland is not limited to bilateral relations but also extends to their roles in the global arena:

1. India-EU Relations: Both nations recognized the importance of the India-EU Strategic Partnership and agreed to support the early conclusion of ongoing trade and investment negotiations. They also emphasized the operationalization of the India-EU Trade and Technology Council (TTC) and the implementation of the India-EU Connectivity Partnership.
2. Ukraine Conflict: The joint statement expressed deep concern over the ongoing war in Ukraine and its humanitarian consequences. Both leaders called for a comprehensive, just, and lasting peace in line with international law and the UN Charter.
3. Indo-Pacific Region: The two sides reinforced their commitment to a free, open, and rules-based Indo-Pacific Region, emphasizing respect for sovereignty, territorial integrity, and freedom of navigation.

India- Poland Bilateral Trade and Investment : To provide a clearer perspective on the trade dynamics between India and Poland, the following table outlines the total trade between India and Poland over the last five years.

The trade trajectory between India and Poland

Source: Ministry of Commerce

The bilateral trade between India and Poland has shown steady growth trajectory over the years. As of the latest available data for FY25 (April-June), trade between the two countries reached approximately $629 million, making Poland the 9th largest destination for Indian exports within the European region. This trade trajectory is likely to increase then, given the emphasis on economic cooperation in the new strategic partnership.

Structure of export and import commodities between India and Poland

Source: Ministry of Commerce

Flow of Investments

Indian investment in Poland has been steadily growing over the years and is now estimated to exceed USD 3 billion in the coming times. Indian companies have become integral partners in Poland's development, contributing significantly to the local economy by creating a substantial number of jobs, particularly in the IT sector. Indian IT companies, including Genpact, Infosys, KPIT-Info Systems, HCL, Tata Consultancy Services, Wipro, L&T Tech, and Zensar Technologies, have established a strong presence in Poland, collectively employing nearly 10,000 Polish nationals.

Beyond IT and outsourcing, Indian companies like UFLEX, Essel Propack, and VVF have also made their mark. Additionally, Indian firms such as Berger Paints India, Escorts, Glenmark Pharmaceuticals, Lambda Therapeutics Research, Lumel SA, and Tata Global Beverages have expanded into the Polish market through strategic acquisitions.

On the other hand, total Polish investment in India is estimated at approximately USD 685 million. Major Polish companies operating in India include TZMO, Can Pack, Polmor, SECO/WARWICK, and Maflow Group. Notably, Billenium, an IT company, established its office in India in 2017, while EKOLOG, focusing on clean technologies, entered the Indian market in 2016 and secured a contract to build an Integrated Solid Waste Management Center at Bengaluru airport. Furthermore, Solaris, a leading Polish producer of electric buses in Europe, has entered into a joint venture with Indian company JBM Auto to produce electric buses for the Indian market.

The new strategic partnership is expected to further boost bilateral investments, with both countries committed to creating a favorable environment for businesses and addressing any obstacles to trade and investment.

Futuristic opportunities

1. Economic Synergies: The partnership provides a platform for leveraging complementary strengths in sectors like IT, pharmaceuticals, and advanced technologies.
2. Educational and Cultural Exchange: Enhanced cooperation in education and culture can lead to a deeper understanding between the two societies and foster innovation.
3. Strategic Alignment: Collaboration on global issues like climate change, terrorism, and cyber security can strengthen both countries' positions in international forums.
4. Market Access: For Indian companies, Poland offers a gateway to the European Union market, while for Polish companies, India presents a vast and growing consumer base.

In conclusions, the elevation of India-Poland relations to a strategic partnership marks a significant milestone in the diplomatic history of both nations. This comprehensive framework for cooperation, encompassing political, economic, cultural, and strategic dimensions, sets the stage for a deeper and more meaningful engagement between the two countries.

As India continues its trajectory towards becoming a global economic powerhouse and Poland solidifies its position as a key player in the European Union, this partnership holds immense potential for mutual growth and influence on the world stage. The success of this strategic partnership will depend on sustained political will, effective implementation of the agreed action plans, and the ability to navigate complex global dynamics.