India-Korea relations are progressing as the two countries transform from trading partners to a more substantial partnership through joint ventures as well as manufacturing and technological tie-ups.
India plans to promote investment of US$ 500 billion over 5 years in the infrastructure sector for roads, power, ports and FEZs. These projects open up huge potential for cooperation between India and Korea.
India's most promising industries are IT, infrastructure, steel, power, automobiles and pharmaceuticals. The Indian IT industry has played a key role in putting India on the path to economic success.
The following is an interview with India Ambassador Skand R. Tayal on the occasion of India's Independence Day, which took place on August 15, 2010.
Would you like to introduce India on the occasion of Independence Day
India celebrates her 64th Independence Day on August 15, 2010. It is a happy coincidence that the Republic of Korea also celebrates their Liberation Day on the same day. It is a day to reflect on our growth as a modern nation over the past six decades and learn from our experiences to work towards a beneficial future.
India's journey since independence in 1947 has been remarkable. In these years India has emerged from the shadows of colonialism to a sizeable global power of reckoning. This journey has reaffirmed our faith in secular and democratic institutions. India is now the world's 11th largest economy and is growing rapidly every year (7.9% in 2009). The world has taken notice of India as a strong economy with decent economic development being registered in the past two years amidst a global slowdown.
For India-Korea relations, the past six decades have been a journey into rediscovery. The enduring bond of Buddhism which connected us centuries ago has today blossomed into a modern Strategic Partnership. This January, President Lee Myung-bak visited India as Chief Guest for our Republic Day Parade. With over one billion-strong consumers, we offer a large market as well as huge manufacturing partnerships to Korea's dynamic corporations and entrepreneurs.
Will you explain the present bilateral trade relations between our two countries
Trade volume is increasing in line with expectations and bilateral trade during the first six months of 2010 has increased by 55%, with Indian exports having risen by 84% and Korean exports by 42%. The historic Comprehensive Economic Partnership Agreement (CEPA) between India and Korea came into effect in January of this year. The Korea-India CEPA is Korea's first free trade agreement with a member of the BRIC nations and has the potential to increase bilateral trade to a much higher level. Under CEPA, most of the major export items from Korea to India enjoy reductions in tariffs. CEPA also promises to open the Korean service sector to Indian professionals and will allow professionals in 163 occupations, including IT experts and assistant English teachers, freer temporary transfer to Korea. The potential for the success of Indian companies in the Korean service sector is still to be realized.
What are some popular sightseeing destinations in India for Koreans
People of India and Korea can develop a better appreciation of each other through travel. It is hence our policy to welcome Korean travelers - for leisure, study and business - to visit our vast nation of rich culture & heritage. Popular sightseeing destinations for Korean travelers include Golden Triangle (Delhi-Agra-Jaipur) for scenic beauty and magnificent architecture. Buddhist sites in India like Bodhgaya, Nalanda, and Sanchi also interest Korean pilgrims. While the peaks of Himalayas, the roaring waters of Ganges River and the deserts of Rajasthan are inducing Korean backpackers. The backwaters of Kerala, with its relaxed Ayurvedic treatment, are popular among stressed out Korean office goers. One Korean website dedicated to details on Indian tourism is www.incredibleindia.co.kr
What are India's key and promising industries
India's promising industries are IT, infrastructure, steel, power, automobiles and pharmaceuticals. The Services sector which has been India's workhorse for well over a decade has continued to grow at 8.7% in 2009-10. The Indian information technology (IT) industry has played a key role in putting India on the path to economic success. For the past several years, India has been an increasingly favored destination for outsourcing customized software development. The business model is that the export-driven Indian software companies offer efficient and cost-effective IT and ITeS services to their clients overseas. The Indian software and IT services exports are expected to reach US$ 49.7 billion in 2009-10.
Indian IT companies are not only successful in English speaking countries of USA and Europe, but also in Latin America and in Central and East Asia. For example, in the case of Japan, Wipro (www.wipro.com) engineers are designing car-navigation system software and support for Hitachi Ltd., and medical scanners for Olympus Corp. Another Indian company, Infosys (www.infosys.com) is working with Fujitsu Ltd. and TATA consultancy Services Limited (www.tcs.com) is designing onboard system for Nissan Motors and international automated trading system software for Daiwa Securities SMBC Co.
In what industrial sectors does India want Korean firms to invest in
India plans to promote an investment of US$ 500 billion over five years in the infrastructure sector for roads, power, ports and FEZs. These projects open up huge potential for cooperation between our two countries. During the last few months, we have had a number of business and investment delegations from India. In April, there was a large delegation from the Ministry of Power to explore cooperation in reducing distribution losses in India based on technological progress made by the Korean electrical industry.
Delhi-Mumbai industrial corridor is another attractive project for establishing many industrial nodes between Delhi and Mumbai encompassing 150 km on both sides of the Dedicated Railway Freight Corridor running through six states (Haryana, Uttar Pradesh, Rajasthan, Gujarat, Maharashtra and Madhya Pradesh). This project aims to develop 24 industrial development projects, 11 investment regions and 13 industrial areas with funding from the Indian government, World Bank and Asia Development Bank. This project, with a total projected investment of US$90 billion, offers major opportunities for collaboration between Indian and Korean companies.
What is the most important economic policy that India is now pushing
Economic policy in the coming years will be focused on infrastructure development in India and on creating employment in the agriculture sector. As Hyundai, LG and Samsung here lured in Indian consumers, Korean conglomerates are now eager to invest in the heavy industries and infrastructure projects of India. Hyundai Rotem is already there as a partner for Delhi Metro. Posco would become the biggest single FDI investor in India when its plans to invest US$ 12 billion on Iron & Steel Plant in Orissa come to fruition. In terms of international trade, India's objective is an annual export growth of 15% with a target of US$ 200 billion by March 2011.
Our relations with Korea are slowly but surely progressing from trading partners to a more substantial partnership through joint ventures, as well as manufacture and technological tie-ups. We are hopeful that this year, when ROK hosts the G-20 Summit, our bilateral relations will also reach a high pedestal.
