About Us 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. 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 over $ 2 billion from India to Hungary.

High level visits

Vice-President of India, Shri M. Hamid Ansari, visited Hungary from 15 – 17 October, 2016, on the eve of 60th anniversary of Hungarian Revolution of 1956. President of India, Dr. Shankar Dayal Sharma visited Hungary in 1993.  The last Indian Prime Minister to have visited Hungary was Shri Rajiv Gandhi in 1988.  From Hungary, the visit of PM Orban to India took place during the 65th anniversary of establishment of diplomatic relations in 2013. 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.

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.
  • MOU between Central Council for Research in Ayurvedic Sciences and the University of Debrecen for establishment of European Institute of Ayurvedic Sciences, in October 2017.

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
Dr. Pana Petra, Deputy State Secretary for Foreign Trade, MFAT
December 2016
Dr. Csaba Balogh, Minister of State for Public Policy, MFAT
October 2017
Mr. Istvan Mikola, Minister of State for Security Policy and International Cooperation, MFAT
November 2017

 
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 660 mn.

Bilateral Trade

YearIndian ExportsIndian importsTotal Trade
 
(in USD Million)
(in USD Million)
(in USD Million)
2009397.6190.7588.3
2010271.1354.4625.5
2011 353.0487.8
840.8
2012363.9278.7
642.6
2013365.6216.9582.5
2014385.3210.7
596.0
2015364.9213.4
578.3
2016382.0186.1568.1
2017437.3229.0666.2
2018 Jan-Apr145.474.9220.4

 
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 Fifth Session of the Hungarian-Indian Joint Commission on Economic Co-operation, was held on March 6-7, 2018 in New Delhi.Both Sides agreed that the full potential of co-operation in several areas has remained untapped and shared the view that both the government and private sectors in their respective countries should take further steps in order to promote trade and investment as well as to strengthen business relations.

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.

Cooperation in Science and Technology:Cooperation in S&T is a key focus area in India-Hungary relations. Currently, the bilateral cooperation is being executed through two agreements - between Indian National Science Academy (INSA) and the HAS and between Department of S&T and NIH, Ministry for National Economy. The two countries have undertaken 30 joint research projects during the plan period (2006 - 2010). Projects covered diversified areas such as nano-technology, agriculture, molecular and nano-science and bio-diversity. The latest session of the Indo-Hungarian Joint Science & Technology Committtee was held in New Delhi on March 21-22, 2018. It was agreed, that seven projects would be jointly funded for a period of 3 years in the areas of ICT, health, energy, agriculture, wastewater treatment, nano-technology, veterinary sciences.

Indian Investments in Hungary: India was the largest greenfield investor in Hungary in 2014 and third largest in 2015. The major Indian presence in Hungary includes Apollo Tyres, SMR Automotive, Sun Pharmaceuticals, Orion Electronics Ltd., Sona BLW, Cosmos and major IT companies TCS, WIPRO, Cognizant and Tech Mahendra. Apollo Tyres has set up a greenfield tyre production factory in Hungary with an investment of Euro 475 million. PM Viktor Orban and Apollo Chairman Onkar Kanwar laid the foundation stone of the factory on 10 April 2015. Gurgaon-based multinational group SRF limited announced in June 2018 the setting up of a packaging plant in the city of Jaszfenyszaru (approx. 70 kms from Budapest). The company is investing Euro 60 million and will employ 100 workers. Indian companies in Hungary provide employment to over 10,000 people. There are 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.

Cultural Links

Indian Cultural Centre in Budapest was formally opened in November 2010 and named Amrita Sher-Gil Cultural Centre on 15 August, 2014. The Centre has been organising regular cultural activities since 2010. In addition, Yoga, Dance, Music and Hindi classes, screening of Indian films are also being held regularly. A bi-monthly ‘Amrit‘ magazine is brought out by the Centre. The Embassy has also organised Indian cultural days in several major cities in Hungary. Bhartiya Samaj has been constituted in 2010 to cater to the cultural needs of the community. The International Day of Yoga was first celebrated in Budapest on 21st June 2015 showcasing yoga, Indian cultural performances, henna painting, and Indian cuisines, handicrafts. The Ganga-Danube Cultural Festival was launched in June 2016, featuring cultural troupes of a diverse variety of dance performers and artists from India. 4th International Day of Yoga and 3rd Ganga-Danube Festival was organized in June 2018 in 22 cities in Hungary (15 cities in 2017, 8 cities in 2016).

Indian Community

There are about 1150 Indians living in Hungary.  Most of them are students (there are about 650 Indian students studying in various universities in Budapest, Pecs, Szeged and Debrecen) and ICT professionals, while some are working in the manufacturing sector of Indo-Hungarian joint ventures.

List of Indian investments in Hungary:

Company
SectorRemarks
Apollo Tyres
AutomotiveHas 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
ITEstablished office in 2001. Upgraded the unit to Global Development Centre.
SMR Automotive Mirror Tech.
Auto componentsEstablished 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)
AutomotiveThe 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
PharmaAcquired by Sun Pharmaceuticals in 2005. Is active in narcotic and alkaloid substances  in the medicinal field.
CG Electric Ganz Transelektro /
Electrical equipmentAcquired by Crompton Greaves group, through their Belgian subsidiary Pauwels Ltd. in July 2006
Cosmos City
Fashion, garmentsFranchise network with 35 shops in Hungary, and neighboring countries.
Wipro
ITAn Indian IT company. They have an office in Infopark.
TechMahindra
ITSatyam Computer Services opened in 2004.  In 2013 became Tech Mahindra Ltd.
Dunakiliti Konzervuzem
Food processingAcquired by Global Green, a Crompton Greaves group company,  in 2006.
Eroterv- Waagner-Biro Kornyezetvedelmi Kft.
Industrial fly-ash90% share held by Indian company McNally Bharat in 2000. Has 10 employees; company designs devices for industrial fly-ash removal.


September 2018