India and Hungary to strengthen economic cooperation

India and Hungary to strengthen economic cooperation

Gazdasági együttműködést India és Magyarország - Szijjártó Péter

Hungary was the special guest at a business forum organized by The Financial Express, a well-reckognized leading Indian business magazine, in New Delhi. The conference was focused on the importance of European markets for Indian companies and presented the most attractive and investor-friendly foreign destinations.

Founded in 1961, The Financial Express magazine is one of the leading print media in India and specializes in Indian and international economic and business news. The purpose of the conference organized by Financial Express was to present Hungary as an attractive investment location in Europe. Besides the Hungarian Minister for Foreign Affairs and Trade Szijjártó Péter and President of the Hungarian Investment Promotion Agency (HIPA) Ésik Róbert, the round-table talk was attended by executives of Indian multinationals operating in Hungary, e.g. Apollo Tyres and Tata Consultancy Services (TCS), who shared their experiences and opinion about the Hungarian economic and business environment. The audience included representatives from the Indian automotive industry, ICT, renewable energy, pharmaceutical and FMCG sectors.

Hungarian Minister for Foreign Affairs and Trade Szijjártó Péter pointed out that two Indian companies, Apollo Tyres and SMP-Group, carried out the largest green field investments in Hungary in 2014 and 2015. And the success story now continues with Sona Group, an established components manufacturer for the automotive industry with manufacturing plants in India, the US and Germany. Sona Group is to launch a HUF 4.2 billion project to build a new manufacturing plant in Polgár, Hajdú-Bihar county, Hungary, creating 130 new jobs.

According to data provided by the Hungarian National Bank (MNB), foreign direct investment by Indian companies in Hungary reached USD 163.7 million in 2014. Yet the data published by the MNB seems to underestimate the actual volume of Indian FDI, because most Indian companies carried out their investment projects in Hungary through their European subsidiaries. A survey by Századvég in 2013 concluded that Indian foreign direct investment in Hungary is close to USD 1.5 billion.