Economic Relations of Hungary and India: Seeking Ways to Be Better Than ‘Just Good’

As for Hungary, core motivation factors in building economic relations are boosting the export performance of SMEs and attracting FDI projects of high added value. India as an export market is definitely a challenging target for Hungarian companies as geographic distance, cultural differences, infrastructure, and regulatory barriers can all be considered as pull-back factors. Nevertheless, an innovative product and international experience combined with the involvement of a local partner can result in success. India is one of the most important Asian investors in Hungary with a very diverse FDI stock in terms of economic sectors. Indian investors are mostly satisfied with the business environment in Hungary; however, labour shortage is considered as a challenge to be addressed. Compared to building relations with China, India today receives less attention in Hungary. However, both governments could do a lot more in accelerating the interactions of Hungarian and Indian businesses and creating more opportunities to raise economic relations to the next level