GST will make it easier for international companies to enter India
Real Estate

GST will make it easier for international companies to enter India

- Dr Norbert Revai-Bere, Consul General, Consulate General of Hungary

In 2014, Dr Norbert Revai-Bere assumed the post of Consul General of Hungary in Mumbai. ´It is an interesting and challenging job as this is the first Hungarian consulate in Mumbai,´ he says. ´We are now thinking of a permanent long-term stay in the city as it is the business and financial capital of India.´ In Mumbai for two years now, the consulate is seeing increasing interest towards Hungary, from both the tourism and business perspectives. Revai-Bere shares more on the bilateral relationship between both countries in conversation with SHRIYAL SETHUMADHAVAN.

Tell us about Indian companies doing successful business in Hungary.
On the economic trade and investment front, we have many new Indian companies in Hungary, the latest being Apollo Tyres, which opened its first greenfield European tyre manufacturing facility in Hungary last year. Overall, we have $2 billion worth of Indian investments in Hungary, which is already giving employment to roughly 10,000 Hungarian employees. These are only through Indian companies in Hungary, which is great, and they are diverse, in different sectors. We also have Aditya Birla with Birla Carbon, an important facility from their portfolio. While other sectors in Hungary are also active for Indian investors, in the IT sector, there is Wipro and TCS. Further, we also have great investments in the pharmaceutical sector; and we are trying to identify and open new markets and potentials. This is not a one-way direction, it is mutual.

At present, how is the infrastructure and construction scenario in Hungary?
Twenty-five years after the change of regime, when the communist system has been replaced in Hungary, we still talk about the need of improving our infrastructure significantly. There was a lot to do as infrastructure was quite underdeveloped at that time. So, huge infrastructure development was initiated in many areas. Today, construction is still one of the main sectors of the Hungarian economy. We have several ongoing projects in roads and transportation improvement. IT infrastructure is a key because we want to attract more investment in the country, for which we need to provide the best possible infrastructure setup and environment. There is also a huge emphasis from the government to develop the eastern part of Hungary even further; and we welcome more investments in that part, where we want to develop basic infrastructure as well as industrial parks and specific infrastructure development programmes. Transport is a sector in which huge infrastructure development is going on in Hungary; there are some huge proposed projects such as the high-speed train and a few others. Another big ongoing infrastructure project is the upgrade of our nuclear power station, which will be important for the future as this one single power station provides almost 40 per cent of Hungary´s electricity needs already. We are also doing a lot of sports infrastructure in the country. Most important, the capital Budapest is bidding to host the 2024 Olympics. And, we are already building infrastructure for this event.

What potential do you see for Indian companies to support the development of infrastructure in Hungary?
Whenever Hungary starts a new project, it tries an international tender. Also, a lot of Indian companies have chosen Hungary as an investment destination because it is the entry point to the European market. More international and multinational companies see Budapest as their big point.

Hungarian companies are looking at investing in main destination markets such as India. Have any investments happened in that direction?
The Smart Cities programme is one of the fields we are focusing on. Hungary is keen on focusing on sustainable water management and waste management; utilisation of water resources is a major expertise of Hungarian companies with all the infrastructure, environment and facilities. A couple of companies are focusing on Tier-II and Tier-III cities as you mentioned, including water and waste management as well as other areas like energy utilisation and energy security. India is difficult to access, and it is difficult to remain in the market and maintain your activities here. Going by experience, if you have a good and reliable partner, it is beneficial. These Hungarian companies are looking for the right Indian partners.

Also, how favourable is the Indian environment for a Hungarian company to operate?
India is not an easy market. Currently, it has 29 states, 23 languages, almost the same as in Europe - we have 28 states and 24 languages in the European Union. But the common market in India is still less developed than in the European Union because each state has its own budget and there is a separate taxation system. The adoption of the GST will change the entire scenario and make things easier for international companies who want to enter the Indian market. However, currently, the biggest difficulty is to understand the different regulations and taxation systems of every Indian state. Hence, there is a need for a good Indian partner who can carry you through the bureaucratic and regulation system. Along with the Central Government, we want to have a good connection with the various state governments.

One of Hungary´s interests is to bring sustainable construction measures to India. Tell us about the market for green and smart construction in Hungary.
Not just in Hungary but all over Europe and the world, there is a greater need for green projects. More technology and cost solutions can be available, even at reasonable prices, for more countries. We have to work together with other countries on R&D and science because these need huge capital. So, if we work together, combine our efforts, knowledge and knowhow, we can have better results and greater achievements. There is a huge market in Hungary itself, but one will not find a larger market for such green projects than India. So, we can offer and develop technologies in India; for example, solutions for waste management, like generating energy from urban waste in a green and eco-friendly way.

Do you see Hungary contributing to India´s skill development initiative in any way?
Many Hungarian educational institutions have been coming to India like never before, and they are looking for partners to combine education and skill development. This kind of training and education will be useful for bilateral relations. In Hungary, at present, the unemployment rate is currently one of the lowest in our history. However, we still don´t have enough skilled force and this, at times, reflects in investments and projects. Now, the government has taken initiatives to help the private sector create synergies between the education sector and the industry or economy; so education will provide human resources, which the economy actually needs. India is important for us with 1 million new entries to the labour market every month, which means

12 million people a year. That´s a huge number, and there is an urgent need to provide jobs and opportunities. So, there is a lot to do in this sector and we are ready to be part of it.

At present, is there any significant agreement of collaboration for both countries, especially in the infrastructure or construction segment?
Most of our bilateral agreements are in place. As Hungary is also part of the European Union, there is a free-trade agreement under negotiations between India and Europe; and this is now one of the longest negotiated free-trade agreements. At present, it´s at a halt, but we hope to reopen these chapters and finalise and sign this comprehensive agreement on the economic relations between Europe and India, of which Hungary is a part.

Two letters of intent have been signed for an Indo-Hungarian Strategic Fund with an enhanced contribution of ñ2 million each for 2014 to 2017. Tell us about this agreement.

Education and R&D are an important part of our relationship. In future, technology and technology transfer are great areas. We would be happy to develop a common project in research together. We have a significant amount of money from Europe to support common research projects between groups and different sectors. Every year, we come up with a list of sectors and areas where we expect a U-turn. We also plan to appoint a new diplomat whose expertise lies in development cooperation between the two countries as well as support agreements for it to materialise. In every sector, we are looking for new partners and new opportunities for Hungarian companies or by means of JVs between the two countries.

To share your views on this interview, write in at feedback@ConstructionWorld.in

- Dr Norbert Revai-Bere, Consul General, Consulate General of Hungary In 2014, Dr Norbert Revai-Bere assumed the post of Consul General of Hungary in Mumbai. ´It is an interesting and challenging job as this is the first Hungarian consulate in Mumbai,´ he says. ´We are now thinking of a permanent long-term stay in the city as it is the business and financial capital of India.´ In Mumbai for two years now, the consulate is seeing increasing interest towards Hungary, from both the tourism and business perspectives. Revai-Bere shares more on the bilateral relationship between both countries in conversation with SHRIYAL SETHUMADHAVAN. Tell us about Indian companies doing successful business in Hungary. On the economic trade and investment front, we have many new Indian companies in Hungary, the latest being Apollo Tyres, which opened its first greenfield European tyre manufacturing facility in Hungary last year. Overall, we have $2 billion worth of Indian investments in Hungary, which is already giving employment to roughly 10,000 Hungarian employees. These are only through Indian companies in Hungary, which is great, and they are diverse, in different sectors. We also have Aditya Birla with Birla Carbon, an important facility from their portfolio. While other sectors in Hungary are also active for Indian investors, in the IT sector, there is Wipro and TCS. Further, we also have great investments in the pharmaceutical sector; and we are trying to identify and open new markets and potentials. This is not a one-way direction, it is mutual. At present, how is the infrastructure and construction scenario in Hungary? Twenty-five years after the change of regime, when the communist system has been replaced in Hungary, we still talk about the need of improving our infrastructure significantly. There was a lot to do as infrastructure was quite underdeveloped at that time. So, huge infrastructure development was initiated in many areas. Today, construction is still one of the main sectors of the Hungarian economy. We have several ongoing projects in roads and transportation improvement. IT infrastructure is a key because we want to attract more investment in the country, for which we need to provide the best possible infrastructure setup and environment. There is also a huge emphasis from the government to develop the eastern part of Hungary even further; and we welcome more investments in that part, where we want to develop basic infrastructure as well as industrial parks and specific infrastructure development programmes. Transport is a sector in which huge infrastructure development is going on in Hungary; there are some huge proposed projects such as the high-speed train and a few others. Another big ongoing infrastructure project is the upgrade of our nuclear power station, which will be important for the future as this one single power station provides almost 40 per cent of Hungary´s electricity needs already. We are also doing a lot of sports infrastructure in the country. Most important, the capital Budapest is bidding to host the 2024 Olympics. And, we are already building infrastructure for this event. What potential do you see for Indian companies to support the development of infrastructure in Hungary? Whenever Hungary starts a new project, it tries an international tender. Also, a lot of Indian companies have chosen Hungary as an investment destination because it is the entry point to the European market. More international and multinational companies see Budapest as their big point. Hungarian companies are looking at investing in main destination markets such as India. Have any investments happened in that direction? The Smart Cities programme is one of the fields we are focusing on. Hungary is keen on focusing on sustainable water management and waste management; utilisation of water resources is a major expertise of Hungarian companies with all the infrastructure, environment and facilities. A couple of companies are focusing on Tier-II and Tier-III cities as you mentioned, including water and waste management as well as other areas like energy utilisation and energy security. India is difficult to access, and it is difficult to remain in the market and maintain your activities here. Going by experience, if you have a good and reliable partner, it is beneficial. These Hungarian companies are looking for the right Indian partners. Also, how favourable is the Indian environment for a Hungarian company to operate? India is not an easy market. Currently, it has 29 states, 23 languages, almost the same as in Europe - we have 28 states and 24 languages in the European Union. But the common market in India is still less developed than in the European Union because each state has its own budget and there is a separate taxation system. The adoption of the GST will change the entire scenario and make things easier for international companies who want to enter the Indian market. However, currently, the biggest difficulty is to understand the different regulations and taxation systems of every Indian state. Hence, there is a need for a good Indian partner who can carry you through the bureaucratic and regulation system. Along with the Central Government, we want to have a good connection with the various state governments. One of Hungary´s interests is to bring sustainable construction measures to India. Tell us about the market for green and smart construction in Hungary. Not just in Hungary but all over Europe and the world, there is a greater need for green projects. More technology and cost solutions can be available, even at reasonable prices, for more countries. We have to work together with other countries on R&D and science because these need huge capital. So, if we work together, combine our efforts, knowledge and knowhow, we can have better results and greater achievements. There is a huge market in Hungary itself, but one will not find a larger market for such green projects than India. So, we can offer and develop technologies in India; for example, solutions for waste management, like generating energy from urban waste in a green and eco-friendly way. Do you see Hungary contributing to India´s skill development initiative in any way? Many Hungarian educational institutions have been coming to India like never before, and they are looking for partners to combine education and skill development. This kind of training and education will be useful for bilateral relations. In Hungary, at present, the unemployment rate is currently one of the lowest in our history. However, we still don´t have enough skilled force and this, at times, reflects in investments and projects. Now, the government has taken initiatives to help the private sector create synergies between the education sector and the industry or economy; so education will provide human resources, which the economy actually needs. India is important for us with 1 million new entries to the labour market every month, which means 12 million people a year. That´s a huge number, and there is an urgent need to provide jobs and opportunities. So, there is a lot to do in this sector and we are ready to be part of it. At present, is there any significant agreement of collaboration for both countries, especially in the infrastructure or construction segment? Most of our bilateral agreements are in place. As Hungary is also part of the European Union, there is a free-trade agreement under negotiations between India and Europe; and this is now one of the longest negotiated free-trade agreements. At present, it´s at a halt, but we hope to reopen these chapters and finalise and sign this comprehensive agreement on the economic relations between Europe and India, of which Hungary is a part. Two letters of intent have been signed for an Indo-Hungarian Strategic Fund with an enhanced contribution of ñ2 million each for 2014 to 2017. Tell us about this agreement. Education and R&D are an important part of our relationship. In future, technology and technology transfer are great areas. We would be happy to develop a common project in research together. We have a significant amount of money from Europe to support common research projects between groups and different sectors. Every year, we come up with a list of sectors and areas where we expect a U-turn. We also plan to appoint a new diplomat whose expertise lies in development cooperation between the two countries as well as support agreements for it to materialise. In every sector, we are looking for new partners and new opportunities for Hungarian companies or by means of JVs between the two countries. To share your views on this interview, write in at feedback@ConstructionWorld.in

Related Stories

Gold Stories

Hi There!

Now get regular updates from CW Magazine on WhatsApp!

Click on link below, message us with a simple hi, and SAVE our number

You will have subscribed to our Construction News on Whatsapp! Enjoy

+91 81086 03000

Join us Telegram