Prime Minister Narendra Modi has toured several nations in the recent past, thereby driving attention towards the Indian connect with these countries in question. As a result, one such name emerging on Indian companies’ radar is Croatia.
Following the PM’s visit to the Croatian capital Zagreb last month, Indian companies have already been pushing their bids for crucial infrastructure contracts. Currently, Afcons Infrastructure Ltd and an Ashoka Buildcon Ltd-led conglomerate are leading the conversation, according to Bloomberg.
With Chinese rivals in their path, Indian companies pitch in bids for Croatia’s Infrastructure
While the former stole the spotlight by pushing three bids for state railway and road-building projects, worth 1.1 billion euros ($1.3 billion), over the week, the latter has its eyes set on the same railway contract. However, it’s going to be a tough path for India ahead with Chinese firms settled in as the biggest rivals vying for similar deals.
On Monday, the Shapoorji Pallonji-led Afcons, one of the largest infrastructure construction companies in India came out with the lowest bid – estimated at 620 million euros – for a railway reconstruction project in Croatia. The project in question is one of the biggest railroad layouts in the country’s modern history, making it Afcons’ third construction project bid in less than a week.
On the other side, the Mumbai-based company is competing against China state-owned firm China Road and Bridge Corporation in two other highway projects in southern Croatia, for which the Indian company put forth bids of 240.5 million euros and 214.4 million euros respectively.
Even though Modi’s Croatia visit has sparked new hopes and possibilities, New Delhi still falls behind as a newcomer in the area while Beijing’s ties with the Balkans go deeper, especially on the infrastructure rehabilitation front. Just this week, Croatia’s Minister of Foreign and European Affairs Gordan Grlić Radman paid an official visit to Beijing and met with Minister of Foreign Affairs of the People’s Republic of China, Wang Yi.
Their dialogue again doubled down on boosting trade exchange so that more Chinese investments could pour in, particularly in the green energy and infrastructure sector.
India-Croatia connect inspired by Modi’s historic Zagreb visit
These projects brewing in the background serve as an extension of the newfound strengthened ties between India and Croatia, especially since Narendra Modi’s official trip on June 18 marked the first-ever visit of an Indian prime minister to the country in the Balkans “to strengthen the growing momentum of high-level exchanges between the two nations.”
During the interaction, Prime Minister of the Republic of Croatia, H.E. Mr. Andrej Plenković and India’s Modi exchanged their views on consolidating bilateral relations. “Both agreed that India and Croatia enjoy close and friendly relations, rooted in shared values of democracy, rule of law, pluralism and equality,” stated a Ministry of External Affairs press release.
Furthermore, their talks focussed on improving connectivity, especially through India–Middle East–Europe Economic Corridor (IMEC) initiative. Given both countries’ longstanding maritime traditions, they also agreed to join forces in ports and shipping domains. Croatia settling in as a Mediterranean gateway to Central Europe emerged as yet another significant issue.