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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 foreign policy in the post-cold war period. Both countries commemorated the 50th year of establishment of diplomatic relations in 1998. The visit of PM Gyurcsany to India in January 2008 took place during the 60th anniversary of establishment of diplomatic relations. Decades of Indo-Hungarian economic interaction further sustained the relationship as India became Hungary’s biggest Asian trading partner and Hungary had 25 joint ventures in India in the 1980s. Intense and fruitful scientific and technological interactions created further value. All of this added up to tremendous political goodwill.Hungarian political leaders have often underlined the name recognition of India, her prestige and stature and a natural affinity towards the country and its people on the part of the Hungarian constituencies. Sometimes, there is spontaneous outpouring of pro-Indian sentiments on the part of Hungarians which nudges the Government to take action.India is also 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. As the fourth largest economy and among the fastest growing markets and an emerging IT power, India is an important partner for Hungary in Asia.

 

Hungarian PM’s Visit to India

The Hungarian Prime Minister Ferenc Gyurcsany visited India from 16-19 January 2008 covering Delhi, Agra and Bangalore. PM Gyurcsany called on President of India, and met with EAM, Minister of Commerce and Industry, Minister for Petroleum and Natural Gas, Chairperson of UPA and Leader of Opposition. Agriculture Minister Josef Graz also accompanied the delegation and met his counterparts in India. Seven Agreements/MoUs were signed between the two countries. These include Memorandum of Understanding on Cooperation in the field of Health and Medicine; Agreement for Cooperation in Agriculture, Plant Quarantine and Protection and Animal Husbandry; Letter of Intent on the Establishment of an India-Hungary Strategic Research Fund; Memorandum of Understanding on Cooperation between ONGC and MOL. PM Gyurcsány also addressed the business forums of FICCI and CII, where Hungary was a special guest. The delegation visited Infosys and BioCon in Bangalore.
The most recent visit to India was made by Prime Minister Viktor Orban (October 2013) who called on  Prime Minister Manmohan Singh, Vice President Hon’ble Dr. Hamid Ansari, met with Chairperson of UPA Smt. Sonia Gandhi. PM Orban thereafter proceeded to Rashtrapati Bhavan for a customary call on Rashtrapatiji. PM Orban also  visited ICWA, Sapru House and gave a lecture on Hungary and Europe today.  Subsequently PM Orban took part in a Indo-Hungarian business Forum, jointly organized by FICCI and CII.  Four Memorandums of Understanding and 2 Letters of Intent were signed in the following areas: (1) MOU  on Traditional Systems of Medicine, (2) MOU on Cooperation in the field of Sports, (3) MOU on Cooperation in the areas of Defensive Aspects of Microbiological and Radiological Detection and Protection, (4) Cultural Exchange Programme for 2013-2015, (5) Letter of Intent on Revision of Air Services Agreement, (6) Letter of Intent for Indo-Hungarian Strategic Research Fund (enhanced contribution of Euro 2 million each for 2014-17.

 

Important Bilateral Treaties and Agreements

In addition to the above listed agreements, a number of other agreements provide the overall institutional framework for economic cooperation with Hungary:

  • Double Taxation Avoidance Agreement (DTAC) (signed in November, 2003)
  • Bilateral Investment Protection and Promotion Agreement (BIPA) (Nov, 2003)
  • MoU on IT Cooperation (Nov.2003)
  • Agreement on Defence Cooperation (Nov.2003)
  • Economic Cooperation Agreement (June 2005)
  • Cultural Exchange Programme (Oct 2006).
  • Agreement on the cooperation in the field of Agriculture (Jan 2008)
  • Agreement in the field of Science and Technology (Jan 2008)
  • Health Cooperation Agreement (Jan 2008)
  • Agreement between ONGC and MOL for joint exploration (January 2008)
  • Establishment of a Strategic Fund of Euro 2 million (Jan 2008)
  • MoU on Social Security Agreement (Feb 2010)
  • MoU between ITDH and FICCI on Trade and Investment Cooperation (Feb 2010)
  • Agreement on Arbitration between FICCI and HCCI (Feb 2010)
  • MoU on cooperation between HITA and FICCI in (Oct 2013)
  • MoU on Traditional Systems of Medicine Ministry of Health India, Ministry of Human Resources Hungary (Oct 2013)
  • Educational Exchange Programme signed (Nov 2014)
  • MOU on Cooperation in the field of Water Management (Oct 2016)
  • MOU on Cooperation between Indian Council of World Affairs and Institute of Foreign Affairs and Trade (Oct 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 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
Mr. Péter Szijjártó, Minister of Foreign Affairs May 2015
Mr. Péter Szijjártó, Minister of Foreign Affairs July 2016

 

Commercial and Economic Relations

Economic co-operation between India and Hungary has a long history. Co-operation 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. Indeed trade has far surpassed the levels of the 1980’s and now stands at around USD 700 million.


Bilateral Trade

India’s trade with Hungary is around USD 600 mln.


Bilateral Trade (in USD Million)
Year Indian Exports Indian imports Total Trade
2002 79.2 23.2 102.3
2003 91.9 27.3 119.2
2004 104.6 31.3 135.9
2005 105.6 44.5 150.1
2006 142.5 128.3 270.8
2007 297.7 100.1 397.8
2008 545.5 146.9 692.5
2009 377.8 188.4 566.1
2010 271.1 354.4 625.5
2011 352.0 487.8 839.8
2012 362.6 279.3 641.9
2013 365.6 216.9 582.5
2014 385.1 210.5 595.6
2015 364.9 213.8 578.7
Source: Central Statistical Office www.ksh.hu

 

Major Hungarian Exports to India:  Machinery and mechanical appliances; electrical equipment, vegetable products, products of the chemical or allied industries, base metals, materials and products of paper industry, optical, medical instruments etc.

Major Indian Exports to Hungary:  Machinery and mechanical appliances; electrical equipment, products of the chemical or allied industries, Vehicles and associated transport equipment, footwear, headgear and accessories of fashion, textiles and textile articles, prepared foodstuffs; beverages; tobacco products.

Trade Composition:  Recent trends indicate a shift in the composition of Indian exports away from traditional goods such as cotton yarn and textiles, towards organic chemicals, machinery, automotive components and pharmaceuticals. Imports from Hungary comprise items such as wheat, electrical machinery and equipment and light engineering goods.


Key Focus Areas

List of Indian investments in Hungary:
Company Sector Remarks
Ganz Transelektro /CG Electric Electrical equipment Acquired by Crompton Greaves group, through their Belgian subsidiary Pauwels Ltd. in July 2006
ICN Valeant Hungary / Alkalioda Pharma Acquired by Sun Pharmaceuticals in 2005. Is active in narcotic and alkaloid substances  in the medicinal field.  Employs about 300 personnel.
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 to SMR Automotive Mirror Technology Hungary. Employs 1350.
Tata Consultancy Services TCS Hungary IT A Tata group company, established office in 2001. Upgraded the unit to Global Development Centre.  Employs about 900 personnel. Opened an IT Centre of Excellence at Szent Istvan University, Godollo. Recently 2012 expanded facility to accomodate extra 300+ workers.
Orion Electronics Ltd. Electronics Producer of electronics appliances. Part of the Thakral Group based in Singapore, with Indian ownership (Indirect Indian investment in Hungary)
Novontech-Zala Ltd. Electronics Established in 2010 for the developing and manufacturing of electronics. In 2012 the Hungarian company entered into strategic partnership with Intech India Pvt. Ltd and Kanha Technologies. Employs 50 workers.
Genpact Hungary IT Established in 2002 Sept 14 with a US$ 70mln investment as it started Business Process Outsourcing in the European market. Employs about 600 personnel.
Wipro IT Wipro Ltd is an Indian IT giant. Collaborating with Ericsson and recently established an office in Infopark. It employes about 70 persons.
Cognizant IT Opened office in 2008, employs 260+.
Satyam Computer Services Limited IT Opened in 2004. Employs about 60 personnel. Have plans to start a BPO centre, named Nipuna. Satyam has been severely affected by the financial crisis in 2010. Since then it has minimized operations in Hungary and in 2013 became Tech Mahindra Ltd.
Wipers, Veszprem /  PMP Autocomponents Auto components Acquired by Nicholas Piramal group company in Jun 2006, employs about 100 personnel. In 2010 Indian mother company purchased the reknowned Czech PAL and shifted production to the Czech republic.
Dunakiliti Konzervuzem Food processing Acquired by Global Green, a Crompton Greaves group company,  in 2006.
WSEL Marketing Kft Misc: Textile, Yarn, Scaffolding, Steel Indian-based company started the operations in Hungary, main business is in to trading Cotton & Synthetic Blended Cotton & Synthetic Blended Yarns, Textiles, Scaffolding and Galvanized Steel tubes. In 2013 the operations of the Hungarian company was renamed as ‘WSEL Marketing Kft’ after it was purchased by Hong Kong-based company run and managed by Indians.
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.
Tata Steel Steel Corus Distribution Europe – founded a new Distribution Office in Györ, Hungary, servicing a  customer base with slitted rings, cut-to-length sheets and rewinded steel coils for many different industries in the Central and Eastern European region. Tata Steel is Europe’s 2nd and the wolds 10th largest steel producer. Operations ended in 2013 in Hungary.
Cosmos City Fashion, garments Franchise network with 35 shops in Hungary, and neighboring countries.
Eculine Hungary Kft Logistics Logistics, HQ is in Mumbai, part of the Avashya Group. Opened office in April 2010, employs 4.

 

Hungarian Embassy in India
New Delhi Embassy
Address: 2/50-M, Niti Marg,Chanakyapuri New Delhi – 110021
Country and local codes: (00)-(91)-(11)
Phone 2611-47-37
After hours: Mobil: 00-91-99-11-453-701
Ambassador extraordinary and plenipotentiary: Mr. Gyula Pethő -Ambassador
Fax: 2688-6742
E-mail: mission.del@mfa.gov.hu
Website: www.mfa.gov.hu/emb/newdelhi
Accredited in: India, Nepal, Banglades, Maldives, Sri Lanka

 

Indian Community

There is a small resident Indian community in Hungary, mostly professionals in IT industry and business, including a transient community of about 80 students who are studying in various universities of Budapest, Pecs, Szeged etc. From time to time, there is an exchange of research scholars and scientists for a period ranging from three weeks to six months under our exchange programmes. In addition there are a few Indians who are married to local Hungarians and permanently settled in Hungary. In recent years, the number of Indians in Hungary is estimated to be 300-350.