India-Korea Trade Target of Us $ 30 Billion to be Achieved by 2014 – Fdi Inflows to be Us $ 250 Billion in Five Years: Anand Sharma

Shri Anand Sharma, Union Minister of Commerce & Industry, speaking at the India-Korea Business forum along with Mr. Kim Jong-Hoon, Minister for Trade, Republic of Korea here today said that the signing of CEPA with Republic of Korea in August 2009 underscored our strong commitment to deepening trade and investment linkages between our two countries. He further stated that it has now been a year since the agreement has come into force and in 2010 the bilateral trade between our two countries stood at nearly US $ 15 billion, witnessing a growth of nearly 44% over the previous year. Though in a recessionary backdrop the trade between our two countries has grown five fold in the last 8 years. Shri Sharma also informed that: "I am confident that as exporters on both sides develop a better understanding of the advantages presented by this agreement through a liberal tariff regime, we should easily be in a position to achieve the trade target of US$ 30 billion by 2014. The services economy will, particularly benefit from a liberalized regime on both sides and will form an important building block for augmenting the bilateral trade between our two countries. We view the agreement with the Republic of Korea to serve as an economic bridge between South Asia and the larger East Asian economy, paving the way for a larger regional economic integration across the continent of Asia". The Forum was attended by senior officials from both the countries and representatives from trade and apex chambers. 

Shri Sharma said that in the next decade, India is set to absorb investment of over US $ 1.7 trillion in infrastructure alone. He informed that the Korean Steel Major POSCO Project in the State of Orissa will not only produce 12 million tonnes of steel, bringing in an investment of over US $ 12 billion, but would also create nearly 50,000 direct and indirect jobs. It will also have considerable spin off for large scale mineral development, infrastructure development through captive port, road hubs, downstream activities in automobile and construction, he added. 

During the interaction, Shri Sharma mentioned that over the last three years, India has received FDI in excess of US $ 100 billion and we expect that in the next five years we should be receiving FDI equity inflows in excess of US $ 250 billion. "I would like to particularly mention that Delhi-Mumbai Industrial Corridor (DMIC) project represents a whole range of opportunity for establishing new urban townships, investment regions, logistic hubs in an economically vibrant part of India. We welcome Korean business community to join hands with us in our endeavour to develop this Corridor". Shri Sharma also said that we are in the process of establishing large investment regions - National Manufacturing Investment Zones to attract investments in the entire gamut of manufacturing industry. "We invite Korean investments in these investment regions for the development of these regions and also for establishment of manufacturing bases", he added. 

In the automobile sector, India is fast emerging as a global design hub for small auto manufacture. Korean auto major like Hyundai have gained considerable popularity in the Indian market. Working together, Indian and Korean companies can develop a model which reaches out to the larger markets in East Asian region. Hyundai Automobiles through its plant in Chennai has expanded operations in the last decade and today is producing 600,000 units a year. 

While concluding his address at the Forum, Shri Sharma noted that Asia decisively will have a pivotal role to play in the emerging order and there is no doubt in my mind that partnership between India and Korea will be one of the defining themes of this trend. "Our relationship with South Korea forms the corner stone of India's 'Look East policy' which has defined our engagement with the larger East Asian region", he further added.