Budapest economic forum on the India–EU FTA: tariff-free trade, investment and opportunities for Hungary

The Embassy of India hosted a professional seminar in Budapest on 26th February under the title “New Economic Horizon: The India–EU FTA and the Union Budget 2026 – Opportunities for Hungary.” The event brought together Hungarian and Indian economic actors, Members of Parliament, ministerial experts, and business leaders to discuss the opportunities arising from the India–EU Free Trade Agreement.

The Ambassador’s Keynote Address: India–EU FTA

At the heart of the seminar was Ambassador Anshuman Gaur‘s keynote address, in which he outlined the historic significance of the India–EU FTA. The conclusion of nearly two decades of negotiations – which the Ambassador attributed not to coincidence but to the pragmatic and committed approach of the Hungarian Presidency of the Council of the EU – was formally reached on 27th January. The agreement stands as one of the largest trade deals in the world, creating a combined market of over 2 billion consumers and introducing the immediate elimination of tariffs on more than 90 per cent of goods.

The Ambassador emphasised that the relationship between the two countries is built not merely on diplomatic protocol, but on genuine mutual trust and political understanding. The €3 billion Hungarian investment presence and €1.2 billion in bilateral trade already provide a strong foundation – whether in the form of Hungarian control technology powering electric buses across India, or pharmaceutical cooperation with Richter Gedeon. “India’s doors are not just open,” he said, “they are being rebuilt with European – and specifically Hungarian – partnership in mind.”

India’s Union Budget 2026 reinforces this message further. The nearly €505 billion framework allocates dedicated funding to green hydrogen, semiconductors, and urban infrastructure – precisely the sectors in which Hungary holds globally recognised expertise.

Panel Discussion: Six Perspectives, One Direction

Six experts took part in the panel discussion, approaching the topic from a range of viewpoints – from European parliamentary politics to hands-on business experience.

Enikő Győri, Member of the European Parliament, noted that trading with India had previously been a complex affair, but expressed her conviction that the FTA could provide significant momentum to this relationship.

Dr Gábor Matula, representing the Ministry for National Economy, underlined that the Hungarian government is actively prepared to support the development of an even stronger trade relationship between Hungary and India – both through institutional backing and concrete investment opportunities.

Levente Pál Tibori, Senior Vice President at SMR Automotive, spoke from direct corporate experience: he sees enormous potential in India, not only in terms of market size but also in terms of labour market developments, which he expects to become one of the defining factors of the coming years.

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István Kiss, Executive Director of the Danube Institute, offered a nuanced perspective: in his view, the EU stands to benefit more from the agreement in the short term, whilst in the longer run both parties – and perhaps India even more so – stand to gain considerably.

Rashmi Singh, FICCI’s representative for Europe, welcomed the agreement and drew attention to the fact that India represents far more than a market of 1.5 billion people – it is an economically stable, transparent, and increasingly investor-friendly environment. She noted that her organisation is happy to assist anyone considering setting up a business in India.

Martina Almási, representing HIPA, highlighted that Hungary is keen to make the most of the opportunities offered by the Indian market, and that the agency stands ready to support Hungarian companies in both import activities and market entry.

Conclusion

The seminar concluded with a clear message: the India–EU FTA and India’s ambitious budgetary programme together create an opportunity that Hungary cannot afford to miss. The political will, the legal framework, and the financial commitment are all in place – now it is up to Hungarian businesses to take the next step.

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