Large conglomerates as well as small and medium enterprises from the Republic of Korea are keen on investing in India as the climate turns more ‘conducive and attractive,’ said Cho Hyun, the country’s Ambassador in India.

“Many big-ticket projects are in the pipeline. Though I cannot name them, they involve huge investments,” he told Business Line in an interaction here.

Reminding that Korea has been a big investor in manufacturing sector (automotives, electronics and white goods) in the last two decades, Cho Hyun said Hyundai, Samsung, LG etc., not just manufacture but also export their products in big numbers.

The business community is elated over the ‘Make in India’ and Skill India programmes. The cooperation between the two nations will move up with the investor-friendly policies being unveiled by the government. Korea has been doing these things for years and reaped the benefits, the ambassador said.

Asked for a growth figure for the bilateral trade from the current $19 billion, Hyun, who was in Hyderabad to promote the Korean Caravan, said, “It would be meaningless to set targets, since we are talking about very big deals in the offing.”

Cautious approach “I want to bat for the Korean SMEs who can do well in collaboration with their Indian counterparts. The big conglomerates can take care of themselves and come on their own. Therefore, the new free trade agreement assumes importance,” Hyun said.

The negotiations for the new Comprehensive Economic Partnership Agreement will begin in July. There is a need for a vibrant, new FTA, which should be in place in a year to give the much-needed push. The Modi government has been quite successful in bringing changes which are getting positive narratives from the Korean industry back home, Hyun said.

However, the Indian government has to think of harmonising rules, regulations and taxations in States, some of which are engaged in active competition with different incentives etc. If a country wants big investments, its FDI policy should be predictable and efficiency in dealing with industry high, the envoy said.

Referring to the controversies surrounding investments of Posco in Odisha, Hyun said, “This case has given a bad impression about India back in Korea. Posco investment in the State is a fiasco, but the Korean government will honour its decisions. The company is doing fine in many other areas.”

The ambassador identified pharma, electronics, defence, high-end textiles, manufacturing, environment and waste treatment as areas than can see good growth prospects in the long term. India is the ninth biggest trading partner for Korea, but there is potential to notch it up far higher, he said.

In defence manufacturing, Korea has expertise in shipbuilding, laser ammunition and advanced technologies which can be offered. Asked about cooperation in aerospace and missile technology, he said it was too early and discussions were on. India had recently offered to prove space cooperation to the South Asian nation, which has become active.

In pharmaceuticals, Hyun said both nations have strengths in the generic drug making. A strong collaboration can lead to production of more affordable drugs. Two Indian companies, Mahindras and Tatas, are doing well in Korea and about 1,000 techies are involved in software areas, he added.

Hyun felt India-China comparison was not right in FDI and manufacturing sectors. When China started rising 30 years ago, the economic conditions were different and so were the opportunities.

Now, as India starts its growth phase, the global economic conditions are vastly different and challenges and competition varied, he added.

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