Keynote Address by Ambassador at the Seminar: "New Economic Horizon: The India-EU FTA and the Union Budget 2026- Opportunities for Hungary"

Venue: Embassy of India, Budapest, Date: 26 February 2026

Ms. Enikő Győri, Member of the European Parliament, 

Dr. Gábor Matula from the Ministry for National Economy, 

Excellencies, distinguished representatives of the Hungarian Government, titans of industry from both Budapest and New Delhi, eminent academics, and friends. 

1. It is a profound pleasure to stand before you today in Budapest—a city that has long served as a bridge between the East and the West, a center of intellectual rigor, and a gateway to the heart of Europe. As I look across this room, I see more than just business leaders; I see the architects of a new era in India-Hungary relations. 
2. We gather at a moment of extraordinary alignment. The global economic geography is shifting, and the two nations represented here are not merely observers of this change—we are its drivers. 
3. Today, we are here to decode a double-reign of opportunity: the historic conclusion of the India-EU Free Trade Agreement (FTA) and the transformative vision of India’s Union Budget 2026-27. My message to you today is simple: India’s doors are not just open; they are being rebuilt with European—and specifically Hungarian—partnership in mind.
4. Reaching this historic milestone was no small feat. The India-EU Free Trade Agreement is the culmination of nearly two decades of complex, often challenging negotiations, requiring immense strategic patience and compromise from both sides. It is a matter of profound satisfaction—and I believe no coincidence—that the most decisive progress in these talks was achieved during the Hungarian Presidency of the Council of the European Union. Budapest’s pragmatic approach to global connectivity and its steadfast commitment to economic cooperation provided the vital momentum needed to bridge the final regulatory gaps, ultimately paving the way for the historic signing we celebrated last month.
5. Before we delve into the technicalities of trade and tariffs, we must acknowledge the bedrock upon which our economic house is built. Our bilateral relationship is not merely one of diplomatic protocol; it is a partnership defined by a high degree of political understanding and mutual trust. We share a history that celebrates cultural icons like Amrita Sher-Gil and academic excellence that resonates in our "knowledge sector". 
6. Hungary has been a steadfast friend, notably supporting India during critical times and now as an active partner in our rise. India and Hungary share a relationship that is remarkably free of friction and rich in mutual respect. This is not a product of chance, but of a high degree of political understanding. Whether it is our cooperation in multilateral forums or our shared belief in a multipolar world, our diplomatic synchrony provides the "sovereign guarantee" that businesses crave. 
7. In recent years, our commercial ties have moved from peripheral to pivotal and are flourishing. Bilateral trade has crossed € 1.2 billion, and Indian investments in Hungary have reached a staggering €3 billion. 
8. Hungary has become a preferred destination for Indian investments in Central and Eastern Europe, with Indian firms establishing major footprints in sectors ranging from automotive components to chemicals. Conversely, Hungarian expertise in high-tech manufacturing and water management has found a receptive and growing market in India. This relationship is characterized by a "quiet efficiency"—we do not just sign MoUs; we build factories, we conduct joint research, and we create jobs. Whether it is the 2,500 electric buses in India running on Hungarian control technology or the collaboration between Indian firms and Hungarian giants like Richter Gedeon, our economic synergy is a living, breathing reality.
9. We recently held the 11th round of India-Hungary Foreign Office Consultations (FOCs), on February 10, 2026, in New Delhi, which reviewed bilateral ties, focusing on trade, investment, defense, green energy, and technology. The Hungarian side was led by State Secretary Ms. Boglárka Illés.
10. To understand where India is going, one must look at the monumental strides made under the leadership of Prime Minister Narendra Modi over the last few years. India is no longer the "sleeping giant"; it is the world’s fastest-growing major economy, a laboratory for digital innovation, and a global manufacturing hub in the making. Our journey toward Viksit Bharat—a Developed India by 2047—is powered by a philosophy of growth that balances ambition with sustainability.
11. In the last decade, we have built physical infrastructure at a pace previously thought impossible, adding thousands of kilometers of national highways and dozens of new airports. We have pioneered the Digital Public Infrastructure, often called the "India Stack," which has democratized finance and governance for 1.4 billion people. We have maintained macroeconomic stability while undertaking the world’s largest poverty-alleviation programs. This is the India that the EU has just signed a deal with—a nation that is confident, stable, and surging.
12. Visionary leadership is meaningless without structural reform. In recent times, India has dismantled the "License Raj" of the past and replaced it with a "Red Carpet" for global capital. We have moved toward a transparent, non-adversarial tax regime. The simplification of corporate tax structures for new manufacturing units has made India one of the most tax-competitive jurisdictions in Asia. We are rolling out "Single-Window Clearance 2.0" and the Customs Integrated System, a unified digital platform that enables automated approvals and non-intrusive AI-enabled scanning to slash turnaround times for shipments. Our new GST reforms simplify tax slabs and streamline compliance- reducing input costs and accelerating refunds which enhances working capital, thereby boosting India's nation-wide industrial productivity. A comprehensive review of FEMA (Non-Debt Instruments) rules is underway to create a contemporary, seamless investment framework for global partners.
13. By consolidating dozens of central labour laws into streamlined codes, we have balanced worker protection with the flexibility required for modern industrial scaling. These reforms are not incremental; they are radical. They are designed to ensure that when a Hungarian company invests in India, its energy is spent on innovation and production, not on navigating paperwork.
14. On the 27th of January 2026, we reached a milestone: the conclusion of the India-EU Free Trade Agreement. This has been aptly termed the "Mother of All Deals" because of its sheer scale, covering a combined market of over 2 billion consumers. 
15. For Hungary, this FTA can be a game-changer. It is not just about reducing costs; it is about strategic integration. At the heart of this agreement is radical Tariff Liberalization, mandating the immediate removal of tariffs on over 90% of goods. This is a massive boon for Hungarian export strongholds. For the automotive sector, it means the removal of barriers on components and machinery. For the pharmaceutical industry, it provides duty-free access to one of the world's largest consumer bases. Even specialized machinery and chemicals will now enter the Indian market with a competitive edge they never had before.
16. The agreement extends far beyond goods. We have introduced new provisions for Services and Mobility, focusing on the movement of skilled professionals. 
17. The Investment Protection framework is a cornerstone of this deal. It offers Hungarian investors greater legal certainty and robust dispute resolution mechanisms, replacing older bilateral treaties with a unified, modern standard that protects your capital against arbitrary changes. This agreement turns the India-EU corridor into a seamless economic highway.
18. Our Union Budget 2026-27, presented just days ago, is a €504.7 billion (₹53.5 lakh crore) blueprint for a future-ready India. It is the fiscal engine that will drive the FTA’s success. I want to highlight the specific allocations and schemes that hold the greatest relevance for our Hungarian partners. 
19. To start, the Budget introduces a new "Single-Window Clearance 2.0" for foreign enterprises. This system is designed to provide a truly unified digital interface for all approvals, significantly enhancing the Ease of Doing Business. In tandem, we are seeing the impact of Tax Rationalization. The newly introduced corporate tax structures for new manufacturing units and the simplification of compliance for foreign entities ensure that the fiscal burden on new entrants is minimized, allowing for faster returns on investment.
20. The Budget’s Sectoral Incentives are perhaps where Hungarian expertise finds its most natural home. We have made heavy allocations toward Green Hydrogen, Semiconductors, and Urban Infrastructure—sectors where Hungarian mastery is globally recognized. 
21. For instance, in the realm of Green Hydrogen, the Indian government has allocated approximately €189 million (₹20,000 crore) to kickstart large-scale production. In the Semiconductor space, the allocation stands at roughly €377 million (₹40,000 crore) to build the local ecosystem. Urban Infrastructure, particularly in water management and urban mobility, has received an allocation exceeding €9.43 billion (₹1,00,000 crore). These are not just numbers; they are funded mandates for the very technologies that Hungary excels in.

• How do the FTA and the Budget work together for you? 

1. They create a dual-advantage system that supports Hungarian investments into India and creates vast market opportunities. By removing border taxes through the FTA and creating direct demand through Budget allocations, we have ensured that Hungarian industry benefits across the board. 
2. We have launched India Semiconductor Mission (ISM) 2.0 with a massive allocation of €3.77 billion (₹40,000 crore). Since European machinery typically accounts for 70% of semiconductor fab capital expenditure, the FTA’s duty reductions on these inputs will make Hungarian precision engineering and machinery indispensable to India’s chip ecosystem.
3. To establish India as a global biopharma hub, we announced the Biopharma Shakti scheme with an outlay of €943.4 million (₹10,000 crore). With basic customs duty on 17 critical drugs now exempted, Hungarian pharma giants like Richter Gedeon can expand their R&D and manufacturing footprint in India’s burgeoning healthcare market.
4. The budget positions India as a global data capital, offering a tax holiday until 2047 for foreign companies providing global cloud services from Indian data centres. Hungarian firms can leverage the FTA’s new professional mobility frameworks to service the Indian market more easily.
5. With phased tariff reductions for high-value products like automobiles and a push for green tech, the Indian market is ready for Hungarian automotive excellence. In the Automotive Sector, including the burgeoning field of e-mobility, Hungarian component makers can now integrate directly into Indian supply chains without the weight of tariffs.
6. The opportunities in Agro and Food Processing are equally significant. With India’s massive agricultural output and the Budget’s focus on processing infrastructure, Hungarian food technology can play a pivotal role in adding value for global exports. The reduction of tariffs on European agricultural products, while retaining safeguards on the most sensitive items, we have created channels for Hungarian farmers accessing the rapidly growing Indian market.
7. The budget doubles down on Green Hydrogen and renewable integration. We are extending customs duty exemptions for capital goods used in Lithium-ion battery manufacturing and critical mineral processing. We are developing seven High-Speed Rail corridors and 20 new National Waterways, creating a massive demand for advanced transport and logistics solutions. Hungary’s global leadership in water management and urban mobility finds a direct match in our urban infrastructure allocations. Hungarian firms will find themselves uniquely positioned to bid for the multi-billion Euro projects funded by the Indian Union Budget. Whether it is desalination, wastewater treatment, or smart urban mobility, the path from Budapest to New Delhi has never been more direct.

Distinguished guests, 

1. The India-EU FTA and the Union Budget 2026 are two halves of a single door—a door that is now wide open for Hungary. By aligning the Budget’s sectoral allocations with the FTA’s tariff liberalizations, we have created a "perfect storm" of opportunity.
2. We invite Hungarian SMEs to form joint ventures with Indian partners, leveraging our deep tech talent pool for your innovation hubs. We invite your industrial leaders to view India not just as a market, but as a primary pillar of your supply chain resilience.
3. We are at a point in history where the stars have aligned for India and Hungary. We have the Political Will, we have the Legal Framework through the FTA, and we have the Financial Commitment through the Budget. 
4. The India of 2026 is a land of 1.5 billion aspirations. It is a country that is building a new city every year, adding a new digital user every second, and now, through this FTA, it is a country that has chosen Europe—and Hungary—as its primary partner in progress. I invite you to move beyond the brochures. Engage with our teams, visit our industrial parks, and see for yourselves the radical transparency of the "New India." The "New Economic Horizon" is not a distant dream; it is the reality of the days ahead of us. 
5. To help us navigate this new landscape, the core of today’s seminar is our panel discussion. Its relevance today cannot be overstated: while the FTA and India's domestic reforms provide the legal and economic framework, it is up to policymakers, strategic thinkers, and industry leaders to translate these texts into tangible business strategies. We are privileged to have an exceptional group of experts to do just that. These experts bring to us their varied and exalted viewpoints- from the European Parliament to Business Associations, from Ministry of Economy to Investment Promotion bodies, from Businesses to Think tanks. 
6. Together, we look forward to their insights as they unpack the profound opportunities that this Free Trade Agreement, combined with India's latest economic reforms, provides for scaling our bilateral trade and mutual investments.

Thank you once again for joining us and being a part of this important conversation.