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Home arrow News arrow Business News arrow India-Korea Trade Target of USD 30 Billion to be Achieved by 2014: Anand Sharma
India-Korea Trade Target of USD 30 Billion to be Achieved by 2014: Anand Sharma Print E-mail
Written by Ganesh   
Friday, 21 January 2011
New Delhi: In 2010, the bilateral trade between India and Korea, witnessed a growth of nearly 44% over the previous year, reaching nearly US $ 15 billion. Even in a recessionary backdrop the trade between our two countries has grown five fold in the last 8 years.

"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," said Shri Anand Sharma, Union Minister of Commerce & Industry.

He was speaking at the India-Korea Business forum along with Mr. Kim Jong-Hoon, Minister for Trade, Republic of Korea. He 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.

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.

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.

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.

"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," Sharma said.

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.

 
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