INTERVIEW Indian state of Rajasthan strives to attract Korean investment
Rajasthan Chief Minister Bhajan Lal Sharma, right, introduces investment opportunities in the Indian state during an interview with The Korea Times in Seoul, Sept. 9. Courtesy of Embassy of India in Seoul
Bhajan Lal Sharma, chief minister of the northwestern Indian state of Rajasthan, has highlighted the state's considerable potential for attracting foreign investment, with POSCO's notable interest in setting up a major asphalt plant in the region taking center stage. This development is part of ongoing high-level discussions with Korean firms, reflecting Rajasthan's proactive strategy to nurture international economic partnerships.
In a recent interview with The Korea Times in Seoul on Sept. 9, Sharma elaborated on the discussions with Korean companies. "Our meeting with POSCO and a startup from the Jeonbuk region focused on asphalt production," he said.
Sharma confirmed that the state has pledged to provide land in Rajasthan for POSCO's proposed factory, calling it a "proactive approach to attract foreign investment."
The chief minister says POSCO has requested approximately 1 square kilometer of land for the advanced asphalt plant. The scale of the investment remains under evaluation, contingent on market research and demand assessment for road construction, as Rajasthan plans to build numerous roads and highways in the near future.
"We are committed to meeting all of POSCO's requirements for their project, which shows our strong commitment to cooperation," Sharma said.
In addition to POSCO International, Sharma detailed meetings with other large corporations, including Hanwha Chemical and LX. He said they have been exploring various areas of potential collaboration emphasizing "Rising Rajasthan," the state's ambitious economic transformation roadmap which aims to nearly double the state's economy from its current $180 billion to $350 billion within the next five years.
"Rajasthan is rich in resources such as oil, metals and minerals, and we also have a thriving tourism sector," he said. “The transport infrastructure in the state is well-developed, with its close proximity to the national capital and key trade routes such as the Delhi-Mumbai Industrial Corridor.”
Sharma acknowledged that there are not many Korean companies in the region but expressed a willingness to establish an industrial complex tailored to help them facilitate their operations.
"Currently, there aren't many Korean companies operating in Rajasthan, with about 12 to 15 present," Sharma said. He noted that the state has already set up an industrial complex for Japanese firms and suggested that a similar industrial complex could be created for Korean companies, too.
"Compared to other regions in India, Rajasthan offers vast land and abundant solar energy. Our 2022 investment policy is being improved for 2024 to be the best in India, streamlining the approval process for foreign investors," Sharma said, with an official announcement on these policy improvements expected in the coming weeks. "With a large, educated and skilled workforce available at a comparatively lower cost than in other emerging economies, investors stand to gain from a fully supportive business environment in Rajasthan, including relevant fiscal incentives, tax exemptions, affordable land and single-window online approval systems."
Renewable energy, particularly solar power, is a key area of potential collaboration between Korea and Rajasthan. Sharma highlighted Rajasthan's leadership in solar energy capacity, boasting 325 days of sunshine per year.
"During our meeting with Hanwha, there was interest in collaboration, especially given our top-tier solar power capabilities. However, it's still in the early stages," he said.
Looking ahead, the Rising Rajasthan Global Investment Summit, scheduled for Dec. 9 and 10 in Jaipur, India, is set to be a landmark event, attracting investors from 25 countries, including Korea, the U.S., U.K., Germany and Japan.
"This will be the first global event of its kind in Rajasthan, providing a platform to discuss further collaboration," Sharma said.