“There are opportunities for Korean companies in the semi-conductor space in India where over US$8 billion of US$10 billion worth incentives remain unsubscribed.”
Mr Rajesh Kumar Singh, Secretary, Department for Promotion of Industry and Internal Trade (DPIIT), Government of India, at the 6th India Korea Business Partnership Forum 2023
Describing Korea as India’s ‘trusted partner’ in a changing global order, Mr Rajesh Kumar Singh, Secretary, Department of Industry, and Internal Trade (DPIIT), Government of India indicated that the bilateral trade agreement would be upgraded to fortify the productive engagement between both countries and urged Korean companies to invest in India’s semiconductor and renewable energy sectors to help accelerate digital and green transition.
“We have taken note of the suggestion that the India-Korea Comprehensive Economic Partnership Agreement (CEPA) needs to be upgraded to further strengthen bilateral relationship”, Mr Singh said while speaking at the India-Korea Business Partnership Forum organized by the Confederation of Indian Industry (CII) in partnership with Korea International Trade Association (KITA), on November 7th, 2023.
He further said, “India is trying to create a transition to a much stronger manufacturing base through schemes such as PLI under which over US$ 26 billion is being provided as incentive in 14 sectors of the economy as well as in hi-tech areas such as semi-conductors where we are providing an incentive of over US$ 10 billion to attract global semi-conductor manufacturers to India”.
“Many Korean companies have their largest R&D centers in India what we call global capacity centers. They have emerged as leaders in the domestic markets and have also leveraged the infrastructure provided to make for the world”, Mr Singh added.
Mr Byung Nae Yang, Deputy Minister of Trade, Ministry of Trade, Industry & Energy, Government of Korea, in his address described India as an important economic cooperation partner of Korea, and said, “Korea boasts excellent capabilities in future industries including EVs, batteries, digital / biotechnology, and clean energy by actively responding to changes in the global market. By combining “Make in India” with Korea’s “Make History” initiative, our two countries will create synergy effect as optimal cooperation partners”, he said.
Speaking at the occasion, Mr Amit Kumar, Ambassador of India to the Republic of Korea said, “efforts to widen and deepen India-Korea special strategic partnership would lead to more collaborations in life sciences, electric vehicles, semiconductors, green hydrogen, electronics, infrastructure, renewable energy, sustainable development, technology and innovation, startups and cultural exchanges”. He further said that bilateral talks on trade, investment, infrastructure, energy, and new technologies were aimed at enhancing bilateral trade from the current level of $28 billion and boosting two-way investments from $13 billion.
Mr Chang Jae-bok, Ambassador of the Republic of Korea to India in his address said “The bilateral trade of US $28 billion and 600 Korean companies contributing to Make in India are also testimony to the strong bilateral ties. India Korea cooperation in finance, logistics, green hydrogen, electric vehicles hold significant promise”.
Mr Sanjeev Puri, President Designate, CII and Chairman & Managing Director, ITC Ltd. stated, “In technology and infrastructure, India and South Korea have many complementarities. India's aim to be US$5 trillion economy can help Korean businesses especially in areas of hi-tech manufacturing such as semiconductor and defense, chemical, auto, food processing, IT/ITeS, EVs”. He further mentioned that India was becoming a very strong manufacturing hub to cater not only to the large and growing consumption market in India, but also as an important value chain for the world and 40% of the global capability centers were in India.
Mr Jeong Marn-ki, Executive Vice Chairman, KITA in his address said “Korean SMEs view India as an attractive destination for investment and manufacturing. Further, digital ICT, renewable energy and aerospace are the new emerging areas for Korean investment in India”.
Mr Shiv Siddhant Kaul, Chairman, CII (Eastern Region) & Managing Director, Nicco Engineering Services Ltd. in his address said, “the global partnership between India and Korea has emerged as a strong pole in global supply chain resilience as well as sustainable and inclusive development. India will serve as a magnet for Korean investments in key sectors including sustainability, energy efficiency, green manufacturing, smart cities, and ecosystems”.
This was followed by sectoral sessions on manufacturing and new and emerging sectors, wherein senior industry representatives from India and Korea shared their perspectives on promoting collaboration and investments in various sectors including automotives, precision electronics, technology startups, medical technologies, infrastructure, etc.
7 November 2023
New Delhi