FTA to Enhance Korea-India Future Partnership

Both Countries Celebrate Independence Day on Aug. 15

Indian Ambassador Skand R Tayal contributed the following article on the occasion of India's Independence Day, which falls on today. ― ED.

I offer the readers of The Korea Times my sincere wishes on the occasion of 62nd anniversary of the Independence of India and 64th anniversary of the Independence of Korea, both of which fall on Aug 15.

It is significant that both countries attained Independence from colonial rule on the same day.

Historical and cultural contacts between people of India and Korea date back to ancient times.

According to ``Samguk-Yusa'' or ``The History of the Three Kingdoms'' written in the 13th century, a Princess from Ayodhya came to Korea and married King Kim-Suro and became Queen Hur Hwang-ok in the year 48 AD (former President Kim Dae-jung, former President Kim Young-sam and former Prime Minister Kim Jong-pil trace this ancestry).

The enduring philosophy of the Gautam Buddha, SkakyaMuni in Korea has influenced the lives and thoughts of the people of the two counties, far thus millennium.

The rationale for a close relationship between India and ROK has been reinforced in modern times by political and economic imperatives.

Korean people remember with great respect that Indian Noble laureate Rabindranath Tagore had composed a short but evocative poem in 1929 about Korea's glorious past and bright future.

``In the golden age of Asia Korea was one of its lamp bearers, And that lamp is waiting To be lighted once again For the illumination of the East.''

The Republic of Korea has made significant economic progress and is now a developed economy fulfilling Rabindranath Tagore's wish of being a light illuminating East Asia.

Relations between India and the ROK, which are multifaceted and multidirectional, have grown over the years and have become more intense and broad based in the recent past.

Rapidly expanding trade and investment flows lie at the core of the bilateral cooperation.

The visit of late President Roh Moo-hyun in October 2004 was an important milestone in expanding our bilateral relations.

It elevated relations to ``Long-term Cooperative Partnership for Peace and Prosperity.''

The state visit by India's President A.P.S Abdul Kalam in February, 2006 has helped India-Korea relations to enter a new vibrant phase.

The visit resulted in the launch of a joint task force to conclude a comprehensive economic partnership agreement.

Under the dynamic leadership of President Lee Myung-bak and Manmohan Singh, Prime Minister of India, we know that the bilateral relations will further grow and deepen in all spheres.

Foreign Minister Yu Myung-hwan's visit to New Delhi on June 23 was another important event when he had called on Prime Minister Manmohan Singh.

Foreign Minister Yu had detailed discussions with our Foreign Minister S.M. Krishna.

India's Commerce and Industries Minister Anand Sharma and Korea's Trade Minister Kim Jong-hoon have signed on Aug. 7 a bilateral Comprehensive Economic Partnership Agreement (CEPA).

The agreement is more than a mere trade facilitation measure. It is a very significant development in our growing economic relations. It is much more than a free trade agreement, as the CEPA encompasses economic cooperation across the complete spectrum.

For trade in goods, the advantages would be tangible and immediate. The new regime would give a distinct advantage to the Korean exporters of goods.

The advantages we see for India are more in the opening of the Korean market for Indian agricultural products; IT-related services; and more investments from Korean companies in India.

India enjoys global primacy in the production of many agro products.

CEPA should enable Korean consumers enjoy Indian agro products like mangoes. Partnership of our IT companies with the Korean industry would spur innovation, bring down costs and make Korean products even more globally competitive.

India looks forward to a visible opening of the IT enabled services market in Korea for our reputed IT companies.

Indian professionals from software, engineering, finance, telecommunications and education sectors will now be able to participate in and contribute to Korea's services sector.

India hopes to gain better access to the Korean services market. Indian service providers in several professions required here in Korean market would be able to offer their services at competitive terms. English teachers from India would also be able to teach English here.

Partnership in production is another area of great promise.

India offers its own huge and growing market. Coupled with exports, a production base in India would bring significant economies of scale. We already have successful examples.

Hyundai Motor produces 600,000 cars annually at its Chennai plant. LG Electronics and many other companies are actively engaged in businesses in India.

Moreover, India offers and excellent location for Korea to diversify its overseas production base.

I am happy that the state of Gujarat, together with the Korea Land Corp. and KOTRA, is coming up with a township exclusively for Korean businesses.

This Model town of about 1,200 hectares, 150 kilometers to the north of Mumbai would be self contained, with land for industry, residences and entertainment.

This project has received enthusiastic response from Korean SMEs.

We understand that over one hundred SMEs have registered their interest.

This kind of facility would be particularly convenient for Koreans, as the comfort level would be higher in the company of other Korean enterprises.

Two-way trade between India and ROK has gathered momentum recently. In the last four years alone, trade volume has gone up more than two and half times.

The bilateral trade has reached the level of $16 billion, in 2008.

South Korea is 14th largest investor in India with presence of major Korean conglomerates such as Samsung Electronics, Hyundai motors, LG, Lotte Group, and Doosan Heavy Industries in India.

Indian investment in Korea is also growing and the major investments are Tata Motors limited, acquired the Daewoo Commercial Vehicle (DWCV), Kunsan for a price of 120 billion won (approximately $102 million, Novelis Inc, a subsidiary of Hindalco Industries Ltd., the flagship company of the Aditya Birla Group, acquired Alcan Taihan Aluminum Ltd. in January 2005.

Novelis Korea is Asia's number one manufacturer of aluminum rolled products with state of art production facilities in Yeongju and Ulsan and employs more than 1,200 employees.

Another Indian Company, M/s Creative Plastic, invested $2 million in Korea and set up a 100 percent-owned investment company, Alchemy Mold & Plastic Ltd. in Pyeongtaek.

India and Korea have also finalized cultural exchange program for the years 2009-2012 which is expected to be signed in September 2009.

CEPA will lead to greater cultural exchanges between India and Republic of Korea and will provide an opportunity to peoples of two nations to savor the diverse and rich culture of India and Korea.

Recently, in association with Korea Foundation, we had mounted a painting exhibition ``Amrita Revisited'' which was very well received by Koreans.

We also had a Contemporary Art Exhibition in National Museum of Contemporary Art.

In September, India would be guest country for the Korea International Art Fair (KIAF) 2009.

The presence of 600 students studying and working in various universities and institutions all over Korea add to the bilateral links. The popularity of Indian restaurants in Korea is heartwarming.

I am confident that the relations between the two nations will further improve and deepen in the coming years and our relationship encompasses new frontiers and areas of cooperation.

I again greet all the people of Korea on the celebration of the independence days of both our countries.