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Official Website of the Indian Embassy of Budapest, Hungary

India-Hungary Relations

 

India’s relations with Hungary have been close and friendly, multi­faceted and substantive. They have survived the vicissitudes of political and economic changes, particularly in Hungary and reorientation of its foreign policy in the post-cold war period. The visit of PM Orban to India in 2013 took place during the 65th anniversary of establishment of diplomatic relations. Vice President, Shri M. Hamid Ansari, visited Hungary in October 2016, on the eve of 60th anniversary of Hungarian Revolution of 1956. Hungarians are extremely grateful for India’s role in the 1956 uprising in Hungary. India’s intervention with the Soviet Union saved the life of Dr. Arpad Goncz who subsequently served as President of Hungary from 1990 to 2000. Indo-Hungarian relations enjoyed a privileged position during Soviet era. India is seen as a country whose ancient culture and spiritual traditions and the academic and scientific excellence specially in the “knowledge sector” is deeply attractive to ordinary Hungarians. Bilateral economic relationship has also been strengthened with investments of the order of $ 2 billion from India to Hungary.

 

High level visits

 

Vice-President, Shri M. Hamid Ansari, visited Hungary from 15 – 17 October, 2016. The last Indian Prime Minister to have visited Hungary was Shri Rajiv Gandhi in 1988.  Prior to that, President Dr. Shankar Dayal Sharma visited Hungary in 1993.  From Hungary, there have been visits of Prime Minister Peter Medgyessy in 2003 and Prime Minister Gyurcsany’s State visit in 2008 on the occasion of the 60th anniversary of the establishment of diplomatic relations. The last Hungarian President to visit India was Dr. Arpad Goncz in 1991. Prime Minister Viktor Orban visited India from October 16-18, 2013.

 

Visit of Vice President of India

 

The Vice-President of India, accompanied by Minister of State for Chemicals and Fertilizers, Shri Mansukh L Mandavia, and four Members of Parliament – Ms. Kumari Selja, Dr. Prabhakar Kore, Shri Javed Ali Khan, and Prof. Saugata Roy, visited Hungary from 15-17 October 2016, at the invitation of Prime Minister Orban. The visit took place as Hungary prepared for commemorating the 60th Anniversary of the 1956 Revolution of October 23, prompting recall of the role played by the then CDA, Shri M.A. Rahman, in saving the life of Arpad Goncz, who subsequently became President of Hungary. VP had delegation level talks with PM Orban, called on President Janos Ader and met with Speaker Laszlo Kover. Two documents – an MOU for Cooperation in Water Management and an MOU between the Indian Council for World Affairs and the Institute of Foreign Affairs and Trade of Hungary, were signed during the visit.

 

Visit of PM Orban to India

 

Prime Minister Viktor Orban led a 100-member strong delegation including a 80-member business delegation on his visit to Delhi and Mumbai from October 16-18, 2013. He was accompanied by Minister of National Economy, Mihaly Varga, Minister of Human Resources, Zoltan Balog among other officials. He called on President, Vice President and held delegation level discussion with Prime Minister. MoUs on Traditional Systems of Medicine, Cooperation in the field of Sports, Cooperation in the areas of Defensive Aspects of Microbiological and Radiological Detection and Protection and Cultural Exchange Programme were signed. In addition, Letters of Intent on Revision of Air Services Agreement and Indo-Hungarian Strategic Research Fund were also signed. PM Orban delivered the keynote address at ICWA on “Hungary and Europe in a Changing World”. He addressed Business Forums in both cities and a meeting with Indian investors at the Mumbai Stock Exchange.

 

Important Bilateral Treaties and Agreements

  • Avoidance of Double Taxation and Prevention of Fiscal Evasion (2003)
  • Agreement for the Promotion and Protection of Investments (2003)
  • MoU on IT Cooperation (2003)
  • Agreement on Defence Cooperation (2003)
  • Agreement on Exemption of Visa Requirement for holders of diplomatic and official passports (2003)
  • Agreement on cooperation in the field of Health & Medicine (2008)
  • Agreement on Cooperation in the field of Agriculture and allied sectors (2008)
  • Letter of Intent on Strategic Research Fund between India and Hungary (2008)
  • MoU between Oil and Natural Gas Corp. Ltd. and MOL Hungarian Oil and Gas Plc. for Cooperation in Hydrocarbon  Sector (2008)
  • Agreement on Social Security between India and Hungary (2010)
  • Agreement between Semmelweis University Faculty of Physical Education and Sport Sciences (TF), Hungary and Sport Authority of India (2011)
  • MoU on Traditional Systems of Medicine (2013)
  • MoU on Cooperation in the field of Sports (2013)
  • Cultural Exchange Programme, 2013-15
  • Letter of Intent for Indo-Hungarian Strategic Research Fund (enhanced contribution of Euro 2 million each for  2014-17.
  • Education Exchange Programme signed in Budapest on 19 November 2014.
  • MOU on Cooperation in the field of Water Management – October 2016
  • MOU between the Indian Council of World Affairs and Institute of Foreign Affairs and Trade of Hungary – October 2016.

 

Bilateral visits

 

Over the years, several high-level visits have taken place:

 

India to Hungary

President Zakir Hussain

1958

President V. V. Giri 1970
PM Indira Gandhi 1972
President Fakhruddin Ali Ahmed 1976
Speaker B.R.Jakhar 1980
PM Rajiv Gandhi 1988
Speaker Rabi Ray 1991
President S.D.Sharma 1993
Speaker S.Patil 1995
Smt. Sushma Swaraj, Minister for Parliamentary Affairs and Health and Family Welfare June 2003
Mr Natwar Singh, External Affairs Minister June 2005
Smt Ambika Soni Minister of Tourism & Culture October 2006
Mrs. Panabaaka Lakshmi, Minister of State for Health and Family Welfare. September 2007
Shri Anand Sharma, Minister of Commerce and Industry February 2010
Smt. Meira Kumar, Speaker of Lok Sabha June 2010
Smt. Preneet Kaur,  Minister of State for External Affairs November 2010
Shri Ashwani Kumar, Minister of State for Parliamentary Affairs May 2011
Shri Vilasrao Deshmukh, Minister for Science and Technology November 2011
Shri Sachin Pilot, Minister of State for Communications and IT Technology October 2012
Shri Salman Khurshid, Minister of External Affairs July 2013
Shri Harish Rawat, Minister of Water Resources October 2013
Dr. Mahesh Sharma, Minister of State for Culture, Tourism and Civil Aviation June 2016
Shri Hamid Ansari, Vice-President October 2016

 

Hungary to India

PM Ferenc Munnich 1962
PM Gyula Kallai 1966
President Pál Losonczi 1969 & 1976
PM Jeno Fock 1974
Speaker Istvan Sarlos 1986
President Dr. Arpad Goncz 1991
Speaker Zoltan Gal 1994
Speaker Janos Ader 1999
PM Peter Medgyessy 2003
Dr. Kinga Goncz, Foreign Minister November 2006
Dr. Janos Veres, Finance Minister January 2007
Mr. Istvan Hiller, Minister of Cultural Heritage October 2007
PM Ferenc Gyurcsány January 2008
Dr. Ildikó Kovács, National Office for Research and Technology January 2010
Mr. Peter Balazs, Minister of Foreign Affairs January 2010
Mr. László Parragh, President of Hungarian Chamber of Commerce and Industry March 2010
Dr. Zsolt Semjén, Deputy Prime Minister, Deputy Speaker of Parliament May 2012
Dr. János Latorcay, Deputy Speaker of Parliament May 2012
Mr. László Kövér, Speaker of Parliament November 2012
Mr. Péter Szijjartó, State Secretary for External Economic Relations August 2013
Mr. Viktor Orban, Prime Minister October 2013
Mr. János Martonyi, Minister of Foreign Affairs November 2013
Dr. Csaba Balogh, Deputy State Secretary for Eastern Opening, MFAT January 2015
Mr. Péter Szijjártó, Minister of Foreign Affairs May 2015
Dr. Laszlo Szabo, Minister of State for Foreign Affairs and Trade October 2015
Mr. Istvan Ijgyarto, MOS for Cultural and Science Diplomacy, MFAT May 2016
Mr. Péter Szijjártó, Minister of Foreign Affairs July 2016

 

 

 

 

 

Bilateral Commercial & Economic Cooperation

 

Economic cooperation between India and Hungary has a long history. Cooperation in this field was institutionalized in 1949 with the signing of a rupee trade agreement, which operated through the negotiation of annual protocols which fixed the products to be traded and the amounts thereof, with the trade being canalized through government agencies. The major items of export from India before 1990 were tea, tobacco, pepper and other spices, de-oiled cakes, finished leather and shoe uppers, iron ore and pellets, cotton and jute goods, engineering goods, Maruti vehicles, chemicals and chemical products. Imports from Hungary included steel and steel products, chemicals, machine tools, pulses, peas, newsprint and engineering goods, especially for railways and power projects. Over 25 collaborations had also been established in India by Hungarian companies. Trade has surpassed the levels of 1980s and now stands at around USD 600 mn.

 

Bilateral Trade

Year

Indian Exports

Indian imports

Total Trade

  (in USD Million) (in USD Million) (in USD Million)

2009

397.6

190.7

588.3

2010

271.1

354.4

625.5

2011 

353.0

487.8

840.8

2012

363.9

278.7

642.6

2013

365.6

216.9

582.5

2014

385.3

210.7

596.0

2015

364.9

213.4

578.3

2016

382.0

186.1

568.1

 

 

 

Major Hungarian Exports to India: Machinery and mechanical appliances and parts, electrical machinery and equipment, television image and sound recorders and parts, organic chemicals, optical photographic, cinematographic measuring, checking, precision, medical or surgical instruments and accessories, vehicles and parts, pharmaceutical products, plastics, articles of paper, iron and steel, plastics.

 

Major Indian Exports to Hungary: Machinery and mechanical appliances and parts, organic chemicals, pharmaceutical products, electrical machinery and equipment, television image and sound recorders and parts, vehicles and parts, footwear, rubber articles, iron and steel, plastics.

 

Joint Economic Committee (JEC): The Indo-Hungary Joint Economic Committee provides the institutional framework for intergovernmental discussions on economic cooperation. Department of Industrial Policy & Promotion is our nodal agency. The fourth session of the Joint Economic Commission took place in Budapest, Hungary, on June 2-3, 2016. Apart from taking stock of the comprehensive economic cooperation, new areas for focused attention were identified. The Hungarian side announced setting up of two offices of Hungarian National Trading House and creation of the post of Attache, Science & Technology, in the Hungarian Embassy in New Delhi.

 

Joint Business Council (JBC): A Joint Business Council of Indian and Hungarian companies was set up in 1979 under an agreement between FICCI and Hungarian Chamber of Commerce to promote direct contacts between business delegations. A meeting of the Joint Business Council was held on the sidelines of JEC meeting in Budapest, Hungary, on June 2, 2016. FICCI brought an 18-member Indian business delegation for the Joint Business Forum. Over 100 B-2-B meetings were held between the Indian companies and the Hungarian companies which participated in Joint Business Forum.

 

Indian Investments in Hungary: India has sizeable investments in Hungary, of the order of US$ 2 billion. India was the largest investor in Hungary in 2014 and third largest in 2015. The major Indian presence in Hungary includes Apollo, TCS, SMR Automotive, Sun Pharmaceuticals, CG Electric, Cosmos, WIPRO, Tech Mahendra, etc. Indian companies in Hungary provide employment to nearly 10,000 people. There is a small number of first generation Indians who have set up businesses.

 

From Hungary, there is only one significant investment. Richter Gedeon, the Hungarian Pharma major has invested USD 20 million in 51:49 joint venture with an Indian firm Themis Medicare Ltd., for production of intermediates, the entire production is exported to Richter Gedeon, Hungary. Efforts are being made to augment Hungarian investments into India.

 

Indian Community

 

There are about 1000 Indians living in Hungary.  Most of them are ICT professionals, while some are working in the manufacturing sector of Indo-Hungarian joint ventures. There are about 400 Indian students studying in various universities in Budapest, Pecs, Szeged and Debrecen.

List of Indian investments in Hungary:

Company Sector Remarks
Apollo Tyres

Automotive

Has invested Euro 475 million in a greenfield plant in Gyongyoshalasz.  Inauguration of the plant took place on 7th April 2017.
Tata Consultancy Services TCS Hungary

IT

Established office in 2001. Upgraded the unit to Global Development Centre. 
SMR Automotive Mirror Tech.

Auto components

Established in 1995, belonged to the Visocorp company. Acquired by the SMR group (Samvardhana Motherson Reflectec) in 2009, the Hungarian unit was renamed SMR Automotive Mirror Technology Hungary.
Samvardhana Motherson Peguform (SMP)

Automotive

The foundation stone for the new SMP factory was laid on 27th November 2015 in Kecskemet. Part of the Samvardhana Motherson Group, the factory will produce bumpers for Mercedes cars.
Sun Pharma / Alkalioda

Pharma

Acquired by Sun Pharmaceuticals in 2005. Is active in narcotic and alkaloid substances  in the medicinal field. 
CG Electric Ganz Transelektro /

Electrical equipment

Acquired by Crompton Greaves group, through their Belgian subsidiary Pauwels Ltd. in July 2006
Cosmos City

Fashion, garments

Franchise network with 35 shops in Hungary, and neighboring countries.
Wipro

IT

An Indian IT company. They have an office in Infopark.
TechMahindra

IT

Satyam Computer Services  opened in 2004.  In 2013 became Tech Mahindra Ltd.
Dunakiliti Konzervuzem

Food processing

Acquired by Global Green, a Crompton Greaves group company,  in 2006.
Eroterv- Waagner-Biro Kornyezetvedelmi Kft.

Industrial fly-ash

90% share held by Indian company McNally Bharat in 2000. Has 10 employees; company designs devices for industrial fly-ash removal.

As of May 2017