According to Mr Amitabh Kant, CEO, NITI Aayog, there are many measures being taken by the Government of India to attract Korean investment into the country. Mr Kant was speaking at the India – Korea Business Summit being organized by the Confederation of Indian Industry (CII) and the Korea International Trade Association (KITA) in New Delhi today.
He stated that just today India jumped 14 ranks from 77 to 63 in the World Bank’s Ease of Doing Business indicators. He stated that this was the result of the Government’s drive to improve the business environment in the country. He pointed out that over the years the Government has been liberalizing its FDI regime and today around 98% of FDI can come in through the automatic approval route. A dedicated Korea Plus desk had also been set up to facilitate Korean Investment in India, he added.
He pointed out that India was just beginning on its journey of urbanization which offered many opportunities for Korean companies to collaborate in India. 100 mart cities were being created, 50 new metros were being set up along with other infrastructure such as airports and upgradation of railway stations. This in his view, offered a very good opportunity for Korean companies to expand their footprint in India. Other areas for cooperation included IT & Electronics and the services sector especially tourism. According to Mr Kant, there was enormous scope for Korea to rise from the 14th largest investor in India to the top five.
According to Mr Joo Hyung-Chul, Advisor to the President of South Korea for Economic Affairs and Chairman of the Presidential Commission on New Southern Policy, Republic of Korea stated that India – Korea collaboration has a strong base. More than 500 Korean companies are currently operating in India and Indian companies like the Tatas and the Mahindras have laid down roots in Korea. He was of the view that the New Southern Policy of Korea and India’s Act East Policy complement each other and form a strong basis for the partnership.
According to H E Mr Shin Bong Kil, Ambassador, Embassy of the Republic of Korea there is a huge potential to improve bilateral trade and investment between the two countries. He stated that bilateral trade was currently at around USD 25 billion and was well on its way to meet the USD 50 billion target set by the two governments for the year 2030. He was of the view that cooperation between SMEs and startups held the key to future collaboration between the two countries.
According to Mr. Sanjay Chadha, Additional Secretary, Department of Commerce, Ministry of Commerce and Industry, Government of India stated that a review of the India – Korea Comprehensive Economic Partnership Agreement (IKCEPA) to further promote bilateral trade between India and Korea. He was of the view that India has tremendous potential in increasing its market share in Korea in terms of goods such as drugs and pharmaceutials and services such as IT and Medical Services.
Mr Shreekant Somany, Chairman, CII MSME Council, Past Chairman CII-Northern Region & Chairman and Managing Director, Somany Ceramics Limited stated that the two countries could work together in sectors such as conventional and renewable energy, leather and leather products and tourism.
The session was moderated by Mr Han Jin Hyun, Vice Chairman, Korea International Trade Association (KITA).
October 24, 2019