OF
THE FIRST SESSION
OF HUNGARIAN-INDIAN JOINT COMMISSION ON ECONOMIC COOPERATION
The
1st Session of the Hungarian-Indian Joint Commission on Economic
Cooperation was held in
Dr.
Kumar welcomed the Hungarian Minister and his delegation to India. The leaders
of the two delegations held extensive discussions on important aspects of
strengthening bilateral economic relations between India and Hungary. During
his stay in India, the Head of the Hungarian delegation met the Minister of
Finance, the Deputy Chairman of the Planning Commission and the Chairman of the
Parliamentary Friendship Group of the Hungarian-India IPU.
The composition of the two delegations is listed at Annexure 2 and 3. The Agenda of the 1st Session of Joint Commission appears in Annexure 1.
The two sides emphasized the need for new initiatives to be taken for forging and fostering strong and sustainable economic ties in the emerging global scenario.
Both
sides welcomed greater interaction between businessmen of the two countries and
emphasized the important role of the Hungary-India Joint Business Council,
which Co-Chairmen and member
companies also held detailed discussions beside the Session of the Joint
Commission as outlined in the Agreed Minutes signed on
1. Formation of the Joint Commission
Pursuant to Article 4 of the
Agreement between the Government of the Republic of India and the Government of
the Republic of Hungary on Economic Cooperation signed on 23rd June
2005 in Budapest, the two Sides established the Hungarian-Indian Joint
Commission on Economic Cooperation.
The two Sides agreed that
communication between the two delegations will be conducted by the Secretaries
in the period between the sessions of the Joint Commission.
The two Sides agreed that the
sessions of the Commission would be held alternately in India and in Hungary.
The tentative agenda should be sent by the organiser Side to the other Side one
month before the session, but it is possible to make alterations in the agenda
on the session as well.
The Chairmen may establish ad hoc
working groups on several current topics.
The Chairmen may involve the
representatives of the business circles into the work of the Commission.
The
two sides gave an overview of the current economic situation in their
respective countries The Indian side explained the economic reforms undertaken
in India and highlighted their positive outcome. The Hungarian side informed
about the Government’s objective to ensure the conditions of rapid and lasting
convergence of economic output and living standards to the EU average. Both
sides acknowledged the importance of the liberalization of the economies as it
provides better opportunities for entrepreneurs to invest in larger measures
and to set up joint ventures in the two countries.
3. Bilateral Economic
Relations and Future Economic Cooperation Opportunities
Both sides agreed that the volume of bilateral trade was not commensurate with the potential that existed and noted the need to achieve more balanced bilateral trade. Greater efforts were needed to be made by both sides to diversify the structure of bilateral trade and cooperation especially in sectors like industry (auto-components, port equipment, electrical components, chemicals), energy, investments, infrastructure building, information technology (software), health care (pharmaceuticals, medical equipments, Ayurveda), finance, banking, agriculture (dairy plants, milk processing equipments, agricultural products), environment protection (water management, waste-water purification), tourism, science and technology, R&D, biotechnology, defense technology etc.
Both
sides emphasized the need for strengthening interaction between NCTI (National
Centre for Trade Information) of India and Investment & Trade Development
Agency of Hungary for exchange of trade & investments related information.
Both sides agreed that with Hungary’s accession to the European Union there are new possibilities at hand for the economic cooperation that should be taken into consideration. Both sides encourage, with special emphasis on the Asia-Invest and Europe Aid programmes, the use of community funds open for these purposes by the chambers and other entrepreneurial organisations.
The Indian side invited Hungary to participate in Trade Fairs organized in India every year. The Hungarian side invited the Indian side as well.
Both sides agreed for regular exchange of information about changes in laws and tenders for purchase of goods & construction projects and possibilities for export of goods & services between the two countries.
Both sides agreed to promote exchange of business visits, hold presentations as well as participate in the international exhibitions. Both sides agreed to organize exchange of business delegations by the respective business chambers.
Indian
side conveyed that a delegation of the Automotive Component Manufacturers Association
is likely to visit Hungary in 2007.It expressed the hope that concrete
partnerships, both in trade and in joint ventures could be identified during
the visit. Hungarian side agreed there was huge potential for cooperation in
the field of auto-components and stated that it looked forward to the visit of
the ACMA delegation.
3.3. IT and E-Governance
Both
sides agreed that the two countries can improve ICT relationship, especially
concerning governmental cooperation. Fields of possible joint activities and
exchange of information are e.g.:
- Information
technology and communications policy and regulation, and
- building
the Information Society.
Moreover,
Hungarian side stressed that it is ready to share its experiences with regard
to governmental projects launched in Hungary. The Hungarian Government is
working on the New Hungary Development Plan that will determine the direction
of the expansion of the country’s economy in the period of 2007-2013. ICT related
programs are integrated in comprehensive economic operative programs. In the
field of ICT the following sub-measures have been prepared:
-
broadband infrastructure,
-
promoting process management of companies,
-
developing e-Business and e-Services.
3.4. Health Care, Pharmaceuticals, Ayurveda
The Indian side requested the Hungarian side for joint venture cooperation in manufacturing as well as in promotion of trade in pharmaceuticals, speeding up approvals for registration of dosage forms from Indian companies having international regulatory approvals like US FDA, MHRA UK, TGA Australia and European certification.
Both the sides agreed to cooperate in the field of training of drug regulators, carrying out regulatory studies and R&D with the National Institute of Pharmaceutical Education and Research (NIPER).
Indian side stated that India awaits for visit of Hungarian Health Minister for which invitation from Indian Minister of Health and Family Welfare was extended during the visit to Budapest in July 2006 of Secretary, Chemicals and Petrochemicals. The visit could be utilized to promote cooperation in the healthcare field including the pharmaceutical sector. The latter offers enormous opportunities for mutually beneficial partnership since Hungary is promoting greater use of generic drugs and India has a large comparative advantage in this area. It would be appreciated if the Health Cooperation Agreement, which expired in 2005, be renewed during the visit of the Hungarian Minister. Hungarian side agreed to try to work for an early visit of Hungarian Minister of Health to India given immense potential for cooperation in this field. It also agreed to work with Indian counterparts for conclusion of Health Cooperation agreement during the visit.
The Hungarian side expressed its
openness to the concept of marketing products of the Indian pharmaceuticals
industry especially by creating an even more favourable environment for generic
products, including those originating from India. In this respect, the
Hungarian side explained that there are several ways of obtaining marketing
authorization according to the principles laid down in the EU legislation.
Besides national authorisation, the relevant Community rules introduced three
procedures: centralized procedure (CP), mutual recognition procedure (MRP) and
decentralized procedure (DC). CP is carried out by the European Medicines
Agency, and the marketing authorisation enables the applicants to commercialize
their medicines throughout the Community without any further administrative
procedure. In the framework of the MRP the marketing authorization is given by
a reference EU member state’s competent authority and can be recognized in an
abridged procedure by other EU based national competent authorities selected by
the applicant. In DC procedure, identical dossiers can be submitted in
all Member States where a marketing authorization is sought. A Reference Member
State, selected by the applicant, will prepare draft assessment documents and
send them to the concerned member states. The current EU legislation does not allow any preferential approach to
assessments carried out by third states’ pharmaceutical authorities in respect
of marketing authorization.
As for the joint venture cooperation proposed by the Indian side, the
Hungarian party expressed that the relevant Hungarian legislation enables
market operators to launch joint ventures and the Government is ready to
support such kind of economic cooperation without prejudice to the applicable
legislation concerning pursuing economic activities and competition.
3.5. Energy
Hungarian
side suggested links between Indian Universities and Technical Institutes
related to training and research in oil sector. Indian side welcomed the
suggestion and agreed to work with the Hungarian side towards this project.
Indian side stated that India is focusing on non-conventional energy sources, including wind energy and bio fuels and would like to cooperate with Hungary, especially in the latter area where Hungary has expertise. Hungarian side welcomed the interest and agreed to work toward establishing cooperative relationship in the field of Biofuels.
Indian side proposed participation in Hungarian power sector projects through Bharat Heavy Electricals Ltd, a Government company.
3.6. Environment Protection and Water Management
Indian side stated interest in collaborating with Hungary in the field of environment protection and water management related areas where Hungary has traditionally been active, especially in waste management. Hungarian side welcomed the interest and expressed its readiness to facilitate the establishment of contracts with Hungarian partners in the areas to be specified by the Indian side.
Indian
side expressed its awareness of excellent technology in Hungary for portable
water purification tanks and said it would encourage private sectors to
actively cooperate in these fields. Hungarian side welcomed the interest and
offered to draw the attention of the Hungarian private sector to this
opportunity.
The Parties encourage the
cooperation of representatives of the environmental industry and identification
of projects of common interest with special regard to best practices,
innovative technologies and procedures applied in environment protection and
water management. For this end the Hungarian side handed over the information
material provided by the Hungarian Association of Environmental Enterprises
(www.kszgysz.hu), which represents enterprises active in providing solutions,
engineering and consulting services in the fields of waste management, waste
water treatment and air purification.
3.7. Investments, Finance and Banking
The Indian side informed the Hungarian side about the reforms in Foreign Investment policy of India.
Both the sides decided to undertake promotion of bilateral investments and also undertake encouragement of joint co-operation in various industrial sectors.
Both sides noted that with BIPA (Bilateral Investment Protection Agreement) and DTAA (Double Taxation Avoidance Agreement) in place and the Exim Banks on the two sides having signed a US$10 mn reciprocal credit line in November 2006, all the necessary framework is in place to facilitate trade and economic cooperation. Business and Industry leaders on the two sides need to take benefit of this and work towards tapping the huge potential that exists for furthering bilateral cooperation.
The Hungarian side encourages the capital investments of Indian
companies in Hungary, especially in the field of IT/ITC, the establishment of
regional services centres, R&D centres, biotechnology and tourism. The
Hungarian government subsidises investments over EUR 10 million. Subsidies can
take the form of:
3.8. R&D/S&T Cooperation, Biotechnology,
Innovation
Both sides expressed satisfaction that the S&T cooperation has been progressing well. Latest round of India-Hungary S&T Committee Meeting on was successfully concluded in December 2006. Almost 25 joint projects are under consideration. Besides bilateral projects, prospects for EU funding for projects involving two or more EU countries and India will also be explored.
Indian side stated that it would be particularly interested in learning from Hungary its experience on bringing industry and academic institutions together for joint research projects and innovations.
Because India boasts a really impressive development in
the innovation and R&D sectors that is discernible on a global scale, the
Hungarian Ministry of Economy and Transport stated that it seeks relations with
Indian counterparts with pleasure during their possible future stay in Hungary.
As biotech is a priority sector as concerns development in
3.9. Transport and Tourism
Hungarian-Indian bilateral cooperation is regulated by the agreement on
air services signed in New Delhi 1966. At present there is no connection
between Budapest and Indian destinations. Both sides agreed that the
modernisation of the agreement on air services is necessary to improve air
connectivity between the two countries. The new agreement will be in compliance
with the EU regulations.
Both sides welcomed that Hungarian Railways (MÁV) Pte. Ltd. is in
cooperation with IR, its Indian counterpart within the framework of
international organisations (e.g.UIC).
Both sides underlined the importance of effective implementation of the
Bilateral Tourism Cooperation Agreement signed on 16th October 1992.
Indian side informed that India has launched a global 'Incredible India' campaign to promote in-bound tourism. While the number of Hungarian tourists is low, at about 4000 per year, given the great interest in Indian culture, India is taking some initiatives to attract Hungarian tourists. India has sponsored documentary / travel programmes from Hungary and is also involved in promotion of wellness tourism to India centred around the ancient medicine system, Ayurveda. Both sides agreed that a direct flight between India and Hungary would definitely facilitate tourism links between the two countries. India is expected to be an important source market for Hungary in the future. The increasingly prosperous Indian middle class is traveling to newer destinations for their holidays.
Indian side underlined the importance
of easy visa issuance towards attractive tourist target countries. Indian side
stressed that, for promotion of business and tourism, it was necessary to
facilitate hassle free travel for the citizens of the two countries. In this
context, it urged Hungarian side to consider a liberal interpretation of the
recent decision by EU in respect of the transit visa, as has been done by the
Slovak Republic, allowing for up to 90 days to those travellers who have
Schengen visa / resident permit. Hungarian side informed the Indian partner on
the implementation of Decision No. 895/2006 of the European Parliament and of
the Council introducing a simplified regime for the
control of persons at the external borders based on the unilateral
recognition by the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary,
Malta, Poland, Slovenia and Slovakia of certain documents as equivalent
to their national visas for the purposes of transit through their
territories. According to the Decision New Member States may only recognise
documents as equivalent to their national visas for the purpose of transit, if
the duration of the transit by the third-country national through the territory
of the new Member State(s) does not exceed five days. Furthermore, the period
of validity of the documents shall cover the duration of the transit.
The
Indian side requested the Hungarian side to participate in the tourism events
organized in India. Hungarian side invited Indian side to participate in its
Tourism Fair “Utazás” organized every year in March.
3.10. Agriculture
Both
the sides agreed to explore the possibilities in exchange of information,
scientists, technical officers and training programmes in respect of Protection
of Plant Varieties & Farmers Rights (PPV&FR) and Agri-Biotechnology,
especially in respect of digitalization of database of plant varieties for implementation
of PPV&FR Act 2001 and capacity building & bio-safety issues in
transgenic crops.
The
Indian side invited proposals from the Hungarian side for exchange of experts
in the field of Horticulture and agreed to explore the possibilities for
cooperation in the area of procurement of germplasm.
The
Indian side requested the Hungarian side to explore the possibility of
importing from India various agro-products like cereals, fresh vegetables,
fresh fruits, spices, coffee, tea & soya bean.
The
Indian side offered to export agricultural equipments/machines to Hungary,
impart training on various aspects of agricultural mechanization at the Farm
Machinery Training & Testing Institutes and exchange information,
scientists, technical experts and trainees on study visits/training programmes.
Both
the sides agreed to share their experiences in the field of Public Private
Partnership and innovative extension approaches.
Hungarian side stated
that there are good possibilities for agricultural cooperation in the field of
research and development, biotechnology, aquaculture, genetics, horticulture
and agricultural machinery.
4. Time and Venue of the Next Session
The two sides agreed to hold the next Session of the Joint Commission in Hungary. The dates would be mutually agreed upon through diplomatic channels.
5. Closing remarks
The two sides agreed that the deliberations of the Joint Commission have given necessary impetus to the development of economic relations between Hungary and India.
The deliberations of the Joint Commission were held in an atmosphere of friendship and cordiality.
Done and signed in New Delhi on January 15, 2007 in two originals in English language.
|
One behalf of the Government of the Republic of Hungary |
On behalf of the Government of the Republic of India |
|
|
|
|
Janos Veres Minister of Finance |
Ashwani Kumar Minister of State for Industry |
Annexure 1
OF
THE FIRST SESSION OF HUNGARIAN – INDIAN JOINT COMMISSION ON ECONOMIC
COOPERATION
NEW DELHI, JANUARY 15-17, 2007
1.
Formation of the Joint Commission
2. Current Situation and Future Prospect of the Domestic
Economies
3. Bilateral Economic Relations and Future Economic
Cooperation Opportunities
4. Time and Venue of the Next Session
5. Closing Remarks
Annexure 2
|
1 |
Dr. Ashwani Kumar, Minister of State for Industry |
|
2 |
Dr. Ajay Dua, Secretary, Department of Industrial Policy & Promotion (DIPP) |
|
3 |
Mr. Nalin Suri, Secretary (West), Ministry of External Affairs (MEA) |
|
4 |
Mr. Gopal Krishna, Joint Secretary (DIPP) |
|
5 |
Ms. Rugmini
Parmar, Director (DIPP) |
|
6 |
Ms. Gauri Singh, Director (DIPP) |
|
7 |
Shri G.V. Srinivas, Counsellor (Commercial & Political), Indian Embassay, Hungary. |
|
8 |
Mr. Rajgopal Sharma, Deputy Secretary (Department of Commerce) |
|
9 |
Mr. K.C. Misra, Joint Secretary (Department of Chemicals & Petrochemicals) |
|
10 |
Mr. Gurdeep Singh, Director (Department of Chemicals & Petrochemicals) |
|
11 |
Mr. Alok Kumar, Director (Ministry of Power) |
|
12 |
Mr. A.P. Singh, Director (Ministry of Health & Family Welfare) |
|
13 |
Mr. Sanjay Vikram Singh, Director (Department of Agriculture & Cooperation) |
|
14 |
Mr. Arun Singhal, Director (Department of Heavy Industry) |
|
15 |
Mr. P.S. Verma, Under Secretary (Ministry of SSI) |
|
16 |
Mr. Sandeep Goyal, Under Secretary (CBDT) (Department of Revenue) |
|
17 |
Mr. S. Goldar, Under Secretary (Ministry of External Affairs) |
|
18 |
Mr. Raman Marwah, Manager (Technology) (National Small Industries Corporation) |
|
19 |
Mr. A.K. Sharma, DGM (HMT) |
|
|
|
Annexure 3
Official delegation
Business delegation