| Hungary's market economy is characterised by its | | | | governments of both countries have shown a keen |
| openness to foreign investment and privatisation. A | | | | interest in reviving their former trade ties. As a result, |
| former member of the erstwhile Soviet Union, | | | | bilateral trade has improved and touched US$135.93 |
| Hungary joined the European Union (EU) in 2004. | | | | million in 2004-05. |
| Subsequently, the Hungarian government took | | | | Areas of exploration |
| several monetary and fiscal measures to boost the | | | | According to analysts, Indian SMEs in sectors such as |
| economy. Today, this East European country is | | | | information technology (IT), textiles and garments, |
| ranked as one of the most prosperous countries in | | | | chemicals, automotive spare parts and processed |
| East Europe. | | | | food products should explore business opportunities in |
| Hungary's strategic location, access to the thriving EU | | | | Hungary. In addition, Indian SMEs in the biotechnology |
| markets and stable infrastructure has attracted an | | | | space should target Hungary, as it is one of the |
| increasing number of Indian SMEs looking to expand | | | | major biotech centres in Europe. |
| their footprints in this region. Significantly, cumulative | | | | Government authorities in both India and Hungary |
| foreign direct investment (FDI) in the country has | | | | understand the importance of extending adequate |
| crossed $60 billion since 1989. | | | | support to facilitate mutual cooperation. Hence, in |
| History of trade ties | | | | recent times, the governments of both countries |
| Textiles, construction materials, mining, metallurgy, | | | | have initiated joint R&D programmes in various |
| motor vehicles, processed foods and chemicals are | | | | industry verticals. An India-Hungary science and |
| the key industries in Hungary. Prior to the collapse of | | | | technology (S&T) fund has been established to |
| the Soviet Union, India was its major trading partner | | | | promote joint research. Through this initiative, areas |
| in Asia. | | | | including green chemistry, optics and biomedicine will |
| In the 1980s, bilateral trade between India and | | | | benefit immensely. |
| Hungary hovered around US$100 million. During this | | | | Looking ahead |
| period, India exported tobacco, tea, finished leather, | | | | Economists are of the opinion that Hungary is likely |
| cotton, engineering goods and chemicals to Hungary. | | | | to emerge as an important economic power in the |
| Alternately, Hungary exported steel and steel | | | | near future. Therefore, Indian SMEs can explore a |
| products, machine tools, newsprint and pulses to | | | | plethora of opportunities in Hungary by forging joint |
| India. Notably, around 60 major business alliances | | | | ventures with their Hungarian counterparts. Realising |
| were forged by Indian and Hungarian companies | | | | the immense business potential in this country that is |
| during this period. | | | | yet to be tapped, some Indian companies have |
| Following the disintegration of the Soviet Union, | | | | already invested in Hungary in an attempt to expand |
| bilateral trade growth between India and Hungary | | | | their reach in international markets. |
| decelerated. However, in the past few years, the | | | | |