Prime Minister Narendra Modi’s landmark visit to Croatia in June 2025, marking the first-ever trip by an Indian Prime Minister to the Balkan nation, has triggered an unprecedented wave of Indian business activity in Croatia’s infrastructure sector, according to a report by Bloomberg.

PM Modi’s formal reception in Zagreb and meeting with Croatian Prime Minister Andrej Plenković symbolized a significant diplomatic milestone, reinforcing a relationship built on shared democratic values and mutual respect for the rule of law, pluralism, and equality.

Boost To Bilateral Relations And Strategic Cooperation

The high-level meetings between the two leaders resulted in the signing of several key agreements, including Memoranda of Understanding covering agriculture, science and technology cooperation, and cultural exchange. Both governments emphasized the latent potential for economic synergy, particularly around port development, maritime connectivity, and the India–Middle East–Europe Economic Corridor (IMEC). Croatia was identified as a Mediterranean gateway for Indian exports and a strategic node for deeper engagement with Central and Eastern Europe.

Indian Infrastructure Giants Enter Croatian Market

PM Modi’s visit has acted as a catalyst, prompting Indian infrastructure firms to aggressively enter the Croatian market. In a notable development, Afcons Infrastructure Ltd., a part of the Shapoorji Pallonji Group, submitted the lowest bid (€620 million) for the reconstruction and modernization of the Dugo Selo–Novska railway—one of Croatia’s largest rail projects in recent years and partly funded by the European Union. Notably, this is Afcons’ third major project bid in Croatia within a single week, highlighting an assertive push by Indian companies to establish a foothold in the region.

Additionally, a consortium led by Ashoka Buildcon Ltd., an Indian EPC major, has signaled its ambition by competing for the same railway contract, demonstrating growing interest across Indian industry heavyweights. Cumulatively, bids from Indian firms have now crossed €1.1 billion, spanning both railway and highway infrastructure tenders.

Stiff Competition From Chinese Firms

Indian companies aiming to carve out a presence in Croatia’s infrastructure sector face strong competition from long-established Chinese players, particularly China Road and Bridge Corporation (CRBC). Afcons is directly competing with CRBC for two substantial road projects in southern Croatia, submitting bids valued at €240.5 million and €214.4 million, respectively. CRBC, which previously built Croatia’s landmark Peljesac Bridge, remains deeply embedded in Croatia’s infrastructure push, with recent contracts including a new expressway and significant tunnel works in the country’s eastern and southern regions.

Croatia’s economic ties with China are deepening, evident by bilateral meetings in Beijing focusing on new Chinese investments, particularly in green energy and infrastructure. These entrenched connections present a competitive challenge for Indian companies, even as India’s diplomatic and economic overtures gather momentum.

Outlook: Toward A Transformative India-Croatia Partnership

Despite the challenge from Chinese incumbents, PM Modi’s historic visit has visibly energized Indo-Croatian relations and significantly broadened the bilateral agenda, especially in infrastructure, connectivity, and maritime trade. The mutual focus on leveraging Croatia’s geographic position as a logistics hub through projects like IMEC, alongside expanded cooperation in education, culture, and technology, signals the start of a new era of partnership that goes beyond conventional diplomacy.

Indian companies’ assertive bids in Croatia’s infrastructure sector, catalysed by high-level political engagement, showcase the tangible economic impact of strategic diplomacy. As these projects unfold, the next phase of Indo-Croatian relations will be characterized not just by symbolic visits, but by real, large-scale collaborative projects shaping the new architecture of Eurasian trade routes and economic connectivity.

Agencies