Good Hungary-India Business Relations

Good-Hungary-India-Business-Relations.jpgHungarian officials are seeing great potential for investments in India - a country described as one of the most dynamic countries by Hungary’s Deputy Minister of Foreign Affairs. A new policy implemented by Hungary encourages future business collaborations with the Asian country. At the same time, Hungary is also favored by Indian foreign investors who see the country as a business hub in Europe.

Welcoming Indian businesses to Hungary

During a visit to Mumbai, Hungarian Deputy Minister of Foreign Affairs has highlighted the importance of the South Asia region and how Indian companies can now benefit from investing in Hungary. He also reminded his Indian counterparts of the reformed foreign investment laws in Hungary: a reduced corporate income tax, a flexible labour code that favours employers, renewed vocational training, free zones with special tax rates and incentives and a job protection action plan for employees.
These significant improvements have helped Hungary become one of Europe’s manufacturing hub and the country has managed to improve its growth despite the rather slow evolution in other EU countries. The Deputy also pointed out that these traits are the reason why so many Indian companies have opened their offices or branches in Hungary.

Indian investments in Hungary

Indian investments in Hungary have risen in recent years and spread throughout all of the important business fields in the country: IT, pharmaceuticals, auto-components, food processing, and power equipment. Between them, Indian investors in China have created approximately 100.000 jobs and invested almost 1.5 billion US dollars.
On the other hand Hungary is also investing in India: pharmaceuticals and electronic components manufacturers are the most notable Hungarian companies in India. 
India continues to be a significant partner in Hungary’s foreign policy and Hungarian officials wish to further improve the manner in which Hungarian companies collaborate with Indian ones and spread their outreach in Asia. The two countries could cooperate in the future in some key investment fields like biotechnology, water management, the automotive sector or infrastructure development. Hungary is also promoting its country brand through tourism.
If you are an Indian investor interested in starting a business in Hungary, the team of experts at our Hungarian law firm can help you get started.