An indian company have invested a hughe amont of money into a hidden little Central European village. The project involves investments of 442.2 million euros and is expected to create over 975 now jobs. It is to be carried out in Gyongyoshalasz, in Northern Hungary. The European Commission has found that regional investment aid totalling 95.7 million euro to Apollo Tyres for the construction of a tyre plant in Gyongyoshalasz (Northern Hungary) is in line with EU state aid rules.For Hungary it is a great news – a huge amount of foreign direct investment arriving to a crisis hit European country from one of the most dynamic economies of the East is a sign that fianlly the economy can get back to the right track. State Secretary Szijjártó after the announcement underlined that due to the recent shift in global economic power, the most rapidly growing markets are now in Asia, and therefore it was the right choice for the Hungarian Government to announce the ‘Opening to the East’ strategy. One of the main objectives of this initiative is to attract as much Asian investment to the country as possible, for which there is a fierce competition among European countries. For instance, in 2008, 11 countries were vying for the Apollo contract. Attracting Asian investors is a priority for Hungary as they contribute to two strategic goals of the Government: become center of production in Europe and attract as many funds as possible.India also..Shares of Apollo Tyres gained momentum in lackluster market following reports that the company is planning to set-up the new plant in Hungary. Mitesh Thacker, Technical Analyst, miteshthacker.com has advised traders to buy the stock
Indian FDI in Hungary
Hungary is very rarely present in the Indian media. A high ranking visit, an election or an unprecedented natural diasaster can place this little Cantral European Country on the headlines of Indian press. But now something has changed.