Roundtable discussion on the prospects of economic relations between India and Hungary

Roundtable discussion on the prospects of economic relations between India and Hungary
2019-05-14 KKI

Today India is the fastest growing large economy in the world that plays an increasingly important role in the global system. Meanwhile, Hungary is increasingly focused on building economic relations with Eastern countries. The Institute for Foreign Affairs and Trade has organised a roundtable discussion in order to evaluate the potential of economic relations between India and Hungary and also to share business experiences. The event was moderated by Péter Goreczky, senior analyst at the Institute for Foreign Affairs and Trade.

Sanjeev Manchanda, commercial representative of the Embassy of India, highlighted that Indian companies were considered to be significant investors in a number of economic sectors in Hungary, e.g. automotive industry, IT and shared services. He underlined that while the economic relationship between the two countries was strong and diverse, there is a need for further improvement and for an increase in bilateral trade. Mr. Manchanda evaluated the feedback from Indian investor companies to be very positive; nevertheless, the recruitment of skilled labour and the bureaucratic process of getting working permits were identified as key challenges for these companies.

Csaba Kovács, head of department at pharma manufacturer, Gedeon Richter Plc. summarised the process of the greenfield investment of the company in India and also shared the experiences of manufacturing in the country. Richter has been cooperating with an Indian pharma company for decades and according to Mr. Kovács the local partner has been playing a key role in the rapid implementation of the facility and in the successful operation. As for challenges, he mentioned the extremely high fluctuation rate.

The third participant of the roundtable discussion, Dr. Péter Besenyei, founder and CEO of Logipix Ltd. briefly introduced his company’s successful business operations in India. Being engaged primarily in the development and installation of video surveillance solutions, the company’s experience is that the key to successful sales in India is patience, while the greatest challenge is managing the differences between India and Europe in many aspects. Dr. Besenyei emphasised that the biggest limitation for Hungarian small and medium sized enterprises was a lack of information regarding India, therefore a local partner could contribute a lot to successful market access.