50 years of Diplomatic Relations between Korea and India

The Korean element vis-a-vis Make in India(Published article in news paper)

The quest to understand a nation’s greatness remains always alive. The ascent from a poverty ridden country to one of the top economic powers is never a simple proposition. It is ‘this miracle on the Hanriver’ that has attracted politicians and diplomats all over the world to visit this country once and again. Yes, it is Daehan Minguk’ or South Korea with which India has enjoyed friendly relations down the ages. The recent visit by our Prime Minister Narendra Modi has given this relationship a newer name, a step towards unfolding something greater.

The vision of a rising Asia becomes impossible if we tend to think it in fragments. Notwithstanding the fact that the Asian leaders have been holding friendly talks, it has not reached its fullest blossoming. Our Prime Minister Modi’s visit to South Korea has been a progressive step as the two leaders have agreed to bolster cooperation in many diversified fields like science, technology, economics and national security. In areas like business cooperation and trade, the leaders have formed a future roadmap for a long-term relationship. Earlier when President Park Geun Hye visited India in 2014, the leaders shared a common understanding that the CEPA ((Comprehensive Economic Partnership Agreement) has a contribution in furthering trade relations between the two countries. They also came upon an agreement to put the revised double taxation avoidance agreement into effect as early as possible, among others. During the 2015 visit to South Korea, Modi signed agreements with President Park, one of which was on cooperation in audiovisual c0-production of films and broadcasting programmes between the two countries. Again an MoU was signed for cooperation between the National security council secretariat of India and Korea; another MoU was signed between the Union Minister of Power and the Minister of Trade. Industry and Energy of South Korea. There was a pact signed between the Ministry of Shipping of India and the Ministers of Oceans and Fisheries of Korea, to name a few.

South Korea’s top companies Samsung, LG, Hyundai , POSCO, Doosan, Hyosung etc. have carved a niche for itself in India with their top commercial presence. The Modi Government is optimistic that South Korean investment will help boost India’s economy. If India can combine its prowess in core technologies and basic science with Korea’s industrial technologies and basic sciences with Korea’s industrial technologies, it will surely create greater potential synergies hitherto unknown. The annual trade between India and South Korea as in November 2014 was more than $ 20 billion, according to the Korea International Trade Association. Nearly 85%of South Korean investments in India are in the manufacturing sector. Hyundai motor company has as an automobiles manufacturing plant in Tamil Nadu, with an annual manufacturing capacity of 600,000 units. In the Indian automobile market, it has 21% share. Prime Minister Modi had met its chairman Chung Mong-Koo for its construction of a third plant in India. More than 2000 Korean companies have invested about $3.9 billion between 1990 and 2014, according to the estimates of the Korean Exim Bank.

India and Korea had signed the CEPA in 2009; in 2013 the bilateral trade was $17.57 billion while the 2015 target is $ 40 billion. The make in India’ project launched by Narendra Modi has enabled making of hardware (R&D and manufacturing units in India. India imports about 65% of the current manufacturing products from Korea. The Make in India policy will facilitate the Indian markets to manufacture robotics companies at a much lower price. Earlier , the robotics components have to be imported from countries like the USA, Japan and Europe with high import duty.

According to an International Trade of Korea report. Korea’s exports to India have been rapidly increasing exceeding its exports to the rest of the world during the last 10 years. Korea is India’s 11th largest trading partner. The items that Korea exports according to the current CEPA. Only 85%tariff concession is applied to India and no less than13.8%of items of trade are subject to incomplete tariff elimination . It is also expected that the Indian Government will get aid from Korea worth $10 billion for infrastructure projects like alternative energy development, high-speed railway construction, smart grid construction, Ganges river purification, etc.

President Park emphasized the importance of developing a ‘creative economy as an engine of national and international growth. Her focus is to create a creative economy ecosystem to create new jobs through creativity and innovation, to strengthen Korea’s leadership through creative industries and to create a society where creativity is respected and demonstrated. In the world economic forum, she promoted her vision of ‘creative economy’ to promote sustainable economic growth. A key initiative of Park Geun Hye administration is the council of the second Saemaul movement, an international concept of Korea’s own successful rural development programme of the 1970s. Lee Ji, Ha, director of the Saemaul Globalization Foundation views it as a purely Korean form of official assistance(ODA) utilizing the country’s own experience to eradicate global poverty. This movement gained worldwide popularity as the engine that drove Korea’s miraculous economic growth and a successful model of national development.

Despite being a small country, South Korea’s development is unique. Sooner or later, it needs to be admitted that the economic miracle is due to the dedication and hard-working nature of the Koreans. For Koreans, work and culture are synonymous. They see developments in terms of the nation. They firmly believe in the saying. “This country will not be good place to live in unless we make it a reasonably good place for all of us to live in.” In the agreements and pacts with India, South Korea has something more of offer us acceptance of which will give our cultural, political and economic relations between both the countries a stronger foothold.

Modi’s Digital India’ and ‘Make in India’ projects will remain a dream vision if we cannot implement a strong work culture. With a key focus on job creation and enhancing manufacturing potential of the Indians, Modi has urged both local and foreign companies to invest in India. It is thus an attempt in the making of a’ renewed India’.