Indian Prime Minister Narendra Modi marked 25 consecutive years as a head of government on 7 October 2026, a milestone spanning his tenure as Chief Minister of Gujarat and his leadership of India since 2014. The anniversary offers an opportunity to examine his political career, India’s economic development, its growing international role and the expanding relationship between India and Hungary.
Narendra Modi began his journey as a head of government on 7 October 2001, when he took office as Chief Minister of Gujarat, one of India’s most economically important states. Almost thirteen years later, he became Prime Minister of India following the Bharatiya Janata Party’s (BJP) victory in the 2014 general election.
Modi subsequently secured second and third terms as Prime Minister following the elections in 2019 and 2024, making him one of the country’s longest-serving national leaders.
The 25-year anniversary was marked by the Indian government, while several world leaders sent messages of congratulations recognising the milestone.
Over this period, India has experienced considerable economic and technological change, alongside an increasingly prominent position in international diplomacy.
From Gujarat to New Delhi: A quarter-century in government
Modi assumed office in Gujarat at a challenging time. The state was recovering from a devastating earthquake earlier in 2001, and reconstruction, infrastructure development and economic recovery were among the government’s immediate priorities.
During his tenure, Gujarat pursued industrial development, investment promotion and improvements to transport and energy infrastructure.
The Vibrant Gujarat investment summit, launched in 2003, became an important platform for attracting domestic and international businesses to the state.
In 2014, Modi moved from state to national politics after the BJP won a parliamentary majority in India’s general election. He was sworn in as Prime Minister on 26 May that year.
His government’s priorities have subsequently included industrial development, digitalisation, infrastructure investment, financial inclusion and expanding India’s international economic partnerships.
India’s economic development and digital transformation
India has strengthened its position among the world’s largest economies over the past decade, supported by domestic consumption, investment and the expansion of its services and technology sectors.
One of the Modi government’s flagship economic initiatives is Make in India, launched in September 2014 to encourage manufacturing, attract foreign investment and strengthen the country’s participation in global supply chains.
Another major programme, Digital India, introduced in 2015, focuses on expanding digital infrastructure, improving access to online public services and encouraging technology adoption throughout the country.
India‘s Unified Payments Interface (UPI), a digital payment system launched in 2016, has become an important part of everyday financial transactions, allowing users to transfer money directly between bank accounts through mobile applications.
Infrastructure development has also remained a major government priority. Investments in motorways, railways, airports, ports and logistics networks are intended to improve connectivity and support economic activity across the country.
Meanwhile, India’s pharmaceutical, information technology, telecommunications and automotive industries continue to play significant roles in its economy.
The government’s longer-term development strategy is centred on Viksit Bharat 2047, an initiative aimed at transforming India into a developed country by 2047, the centenary of its independence.
India’s expanding role in international affairs
India’s international profile has grown considerably during Modi’s premiership.
The country has strengthened its engagement with major economic and political partners, including the European Union, the United States, Japan and countries across the Middle East, Africa and Southeast Asia.
India also maintains important relationships with Russia and participates in multilateral organisations such as the G20, BRICS and the Shanghai Cooperation Organisation.
In 2023, New Delhi hosted the G20 Leaders’ Summit under India’s presidency, bringing together representatives of the world’s leading economies.
The summit addressed issues including global economic development, sustainable growth, financial cooperation and the interests of developing economies.
India’s approach to international relations continues to emphasise strategic autonomy, allowing New Delhi to pursue partnerships with different countries while maintaining its own foreign policy priorities.
As the world’s most populous country and a major emerging economy, India is expected to remain an important participant in discussions concerning international trade, technology, energy security and global governance.
EU–India free trade agreement: A major milestone in economic relations
One of the most significant recent developments in India’s international economic relations came on 27 January 2026, when the European Union and India concluded negotiations on a landmark Free Trade Agreement (FTA).
The agreement followed nearly two decades of negotiations and represents a major step towards closer economic cooperation between two of the world’s largest markets.
Together, the EU and India account for approximately two billion people, creating considerable opportunities for businesses, investors and exporters.
The agreement is designed to reduce tariffs, remove trade barriers and improve market access for companies operating in both economies.
According to the European Commission, the deal will eliminate or reduce tariffs on more than 96% of EU goods exports to India. It is also expected to support investment, strengthen supply chains and encourage further commercial cooperation.
The potential benefits extend to several sectors, including automotive manufacturing, machinery, chemicals, pharmaceuticals and other industrial products.
For Hungary, the agreement could create additional opportunities for exporters and manufacturers seeking access to the expanding Indian market.
Hungarian companies operating in automotive components, industrial machinery, pharmaceuticals and advanced technologies could benefit from improved trading conditions once the agreement takes effect.
The EU–India agreement is not yet in force. Following the conclusion of negotiations in January, the European Commission submitted proposals for its signature and conclusion to the Council of the European Union in September 2026. The necessary approval procedures must be completed before the agreement can be implemented.
Nevertheless, the conclusion of negotiations already represents an important development in relations between India and Europe, with potential long-term implications for Hungary’s trade and investment ties.
Hungary and India: Strengthening bilateral relations
India’s growing economic significance has also created new opportunities for cooperation with Hungary.
The two countries maintain longstanding diplomatic relations, with cooperation spanning trade, investment, education, science and culture.
According to figures published by the Embassy of India in Budapest, bilateral trade reached approximately USD 2.4 billion in 2025, compared with around USD 1.3 billion in 2024.
Indian investment in Hungary amounts to approximately USD 3.3 billion, underlining the importance of bilateral business relations.
Indian companies have established operations in Hungary across several sectors, while Hungarian businesses are also exploring opportunities in the Indian market.
Machinery, electrical equipment, pharmaceuticals, chemicals and automotive products feature among the major categories of goods traded between the two countries.
Diplomatic engagement remains an important part of this relationship. As we wrote in September, India and Hungary strengthen ties as foreign ministers meet in NY.
His Excellency Anshuman Gaur, the current Ambassador of India to Hungary, assumed his post in Budapest in 2025. The growing importance of EU–India economic relations has also featured in diplomatic and business discussions in Budapest. In February 2026, the Embassy of India organised a business seminar entitled New Economic Horizon: The India–EU FTA and the Union Budget 2026 – Opportunities for Hungary. The event brought together representatives of the Hungarian and Indian business communities, policymakers and other stakeholders to discuss the implications of the free trade agreement. Ambassador Gaur addressed the significance of the agreement and the opportunities it could create for Hungarian and Indian enterprises.
Beyond economic relations, educational and cultural exchanges continue to contribute to closer ties between the two countries.
Indian students attend Hungarian universities, including through international scholarship programmes, while cultural cooperation encompasses literature, music, academic research and other fields.
Looking ahead: India’s development ambitions
Narendra Modi’s 25 years as a head of government coincide with a period of substantial change in India’s economy, infrastructure and international engagement.
From his early years as Chief Minister of Gujarat to his third term as India’s Prime Minister, his political career has been closely associated with programmes aimed at modernising the country and expanding its economic opportunities.
The Indian government’s Viksit Bharat 2047 initiative provides a longer-term framework for its development ambitions, focusing on economic growth, technological progress, infrastructure and social development.
At the international level, India’s partnerships with the European Union and individual European countries are likely to remain important components of its economic strategy.
For Hungary, the conclusion of negotiations on the EU–India Free Trade Agreement, together with growing bilateral commerce and investment, provides a basis for further cooperation in the years ahead.
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