Ministry of External Affairs of Republic of In : Speech by Secretary (East) at India-Korea Business Summit ​ (​January 15, 2016)

Mr. Naushad Forbes, President-Designate, CII and Director,
Forbes Marshall,
Mr. Kim Jaehong, President and CEO, KOTRA,
Mr. Chandrajit Banerjee, Director General, CII

Ladies and Gentlemen,

• This India-Korea Business Summit is now drawing to a close, I am told that the discussions have been very productive and this platform has provided us with an opportunity to think creatively about ways to deepen our economic engagement to achieve the full potential of our relationship. I congratulate Chosun Ilbo, KOTRA and CII for organizing this event, which came at a very timely juncture to review the progress we have made and chart a roadmap for an expanded partnership.
• India-Korea relations have witnessed prolific growth over the past decade or so. However, we all agree that given the sheer potential and promise of our relationship, what we have achieved is just the tip of the iceberg. The economic engagement between the two countries has been based on the strong foundations of rule of law, free markets and a strong desire to establish a long-term cooperative partnership.
• The raising of our relationship to the level of 'Special Strategic Partnership' during the visit of Prime Minister Narendra Modi to Korea in 2015 is indicative of the importance both countries attach to our ever expanding collaboration and partnership.
• As we talk of conceptualizing or defining a 'roadmap for an expanded relationship', it is crucial that we seek to actively identify and leverage the synergies and complementarities that exist between our two economies. In doing so, we must be guided by the intention of enhancing both the quantity and the quality of our bilateral trade and its potential.
• India is undergoing economic and social transformation on a scale and a speed that is unmatched in history. Our growth rate was 7.3% in the last year. World Bank has projected even better growth this year. Indian economy is the fastest growing economy among major countries. We are also working hard that the benefits of this growth reaches to the common man. Since the new government assumed office in May 2014, we have launched several initiatives that can have a transformational impact on lives of people.
• India offers opportunities ranging from building 50 million affordable houses to setting up 100 smart cities; modernization of railway network and re-development of stations to setting up new railway corridors; generation of 175 GW of renewable energy to transmission and distribution networks. Construction of National Highways, bridges, and Metro rail networks. Such a huge potential for creation of infrastructure and production of goods will not be available in any other country.
• A growing India offers opportunities across sectors in an investor friendly environment for Korean companies in a number of areas such as manufacturing, pharma, automobiles, railways, renewable energy, IT and many others. The 'Make in India' initiative of the Indian Government is a notable step towards providing the policy infrastructure to help foreign companies convert these opportunities into reality. Our Foreign Direct Investment (FDI) policy is widely reckoned to be among the most liberal in the emerging economies, allowing upto 100% FDI under the automatic route in several of our sectors and activities.
• RoK is known world over for its strengths in shipbuilding. India is also in the process of upgrading and expanding its shipping industry, presenting an unprecedented opportunity for both sides. Taking note of the immense potential presented by the opportunities for collaboration in Shipping, the Governments of India and Korea have set up a 'Joint Working Group' in this area to provide a forum for greater interaction and dialogue to promote cooperation in this area.
• Indian IT and software service sector has proven expertise and competitiveness. RoK's hardware industry has also made name for itself globally. India-RoK cooperation in this sector, especially under the 'Digital India' initiative, can have a transformative impact on the lives of millions of people.
• Defence industry is emerging as another key area of cooperation, and we are keen that more joint ventures and collaboration take place in this sector.
• Korea is home to some of the world's most successful industries, many of which have already invested in India and have become household names, be it cell phones, automobiles, home appliances, or public transport systems like the metro projects in various Indian cities. Several Korean companies made the bold move of investing in India at the time when India had newly embarked on its path of liberalization, and their success is for all to see. We hope Korean companies can continue to 'Make in India', and indeed export from India.
• Government of India is committed to address any concern that our Korean friends have on the issue of ease of doing business. As a result of our initiatives: FDI inflows have gone up by 40% compared with previous year's corresponding period; we have jumped 12 ranks in the latest ranking by the World Bank on 'ease of doing business'; India has also jumped 16 places on the World Economic Forum's global competitive index. These are just a few of many votes of confidence in India's transformative policies.
• India is keen to further invigorate the bilateral engagement with Korea in a wide number of areas. We look at Korea as of our key development partners, and hope to work together for the common prosperity, benefit and good of our countries and our people.
• An increase in balanced bilateral trade and investment would bring with it mutual benefits to both India and ROK, and translate into greater opportunity and prosperity for our nations and people. Events such as the India-Korea Business Summit organized over yesterday and today are key forums for fruitful and productive discussions for encouraging and enhancing the India-Korea bilateral business relationship and I, once again, congratulate the organizers on their extremely useful and remarkable endeavour.

Thank you.