Embassy of India

Hungary and Bosnia & Herzegovina

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. 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. President of India, Dr. Shankar Dayal Sharma visited Hungary in 1993. Prime Minister Shri Rajiv Gandhi visited Hungary 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.
• MOU between Eotvos Lorand University(ELTE) of Hungary and Indian Council for Cultural Relations(ICCR, New Delhi for establishment of Hindi Chair at ELTE university in September 2018.

Bilateral visits

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

India to Hungary

Hungary to India

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 730 mn.

Bilateral Trade

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. Gurgaon-based multinational group SRF limited announced setting up of a packaging plant in the city of Jaszfenyszaru. The company plans to invest Euro 60 million (approx. Ft 18 billion) and will employ 100 workers. Production is expected to commence in 2019. On 21^st November 2018, a greenfield investment of Euro 71.50 million by Flex Films Europa, a subsidiary of Uflex India ltd was announced. The company will establish a flexible packaging materials production plant in Rétság. In May 2018 Samvardhana Motherson Group (SMG) inaugurated a HUF 5 billion (€ 15.3 million) expansion at its base in Túrkeve (SE Hungary). SMGʼs molded plastics division, Motherson Automotive Technologies & Engineering (MATE) will build a 12,000 squaremeter plant creating 100 jobs. 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. The 5^th International Day of Yoga was organized in June 2019 in 17 cities of Hungary. Embassy celebrated the 150^th birth anniversary of Mahatma Gandhi on October 2, 2018 in the magnificent Hungarian Parliament's prestigious Szell Kalman Hall. The Speaker of Hungarian National Assembly, and Members of the Hungarian Parliament participated in the event. On 21 February, 2019, in collaboration with the Embassy, the Magyar Posta issued a commemorative miniature sheet of four stamps in forty thousand copies. The 5th Indian Film Festival was organized from 4-10 October, 2018 in Puskin cinema, Budapest. A selection of 7 Hindi films and three regional films were showcased under the aegis of a professional Curator appointed for the Indian Film Festival, which also roped in three National Award-Winning Director of Indian Films.

Indian Community

There are about 1200 Indians living in Hungary. Most of them are students (there are about 700 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:

August 2019