An Indian firm that makes flexible plastic packaging will build a 23 billion HUF (71.5m EUR) plant in Rétság, northern Hungary.
Flex Films will receive a 2.8 billion HUF grant for the investment which will create 170 new jobs and help generate the local economy. Péter Szijjártó, minister of Foreign Affairs and Trade, said the plant will be Flex Film’s second in Europe after Poland.
Minister Szijjártó said there was considerable regional competition for the investment and a three-year cooperation agreement between Invest India and the Hungarian investment agency played an important role in winning over Flex Films.
According to the numbers, India is currently the ninth most important investor in Hungary and as a result of these investments bilateral trade grew to 665 million USD last year.
The minister said that in the first eight months of this year, Hungarian exports grew by 22 percent and trade turnover by 9 percent.
Indian companies have played an important role in Hungary’s 5 percent GDP growth in the third quarter, which is more than double of the European average. This shows that it is realistic to expect that Hungary’s economic growth will remain over 4 percent in the long-term, he concluded.