HUNGARY

The Hungarian Economy, despite small size of the domestic market is the third largest in Central Europe in US$ terms. It is one of the most open economies with the State and Cooperatives sectors having been almost entirely privatized.

Hungary provides a gateway to the 200 million EU market on the one hand and the 90 million market in Central European on the other hand.

Hungary is a member of CEFTA, a free trade agreement of Central European Countries between Hungary, Poland, Czech Republic, Slovakia, Romania, Slovenia, Bulgaria and Croatia.

The Hungarian Economy is dominated by multinationals and one approach to enhancing exports would be to tie-up directly with them. There is also considerable scope to invest in manufacturing / production facilities in sectors of interest to India, e.g., textiles, steel, etc. and after value addition consider exports to CEFTA and the EU. At the same time in certain sectors exporters may need focus on specialized niches areas where the potential for growth is higher, i.e., textiles & garments, automotive spare parts, chemicals & pharmaceuticals, electrical equipments and processed food products.