India-South Korea Relations Under the New Modi Government

Discussion in 'Foreign Relations' started by Rushil51, Aug 13, 2014.

  1. Rushil51

    Rushil51 Regular Member

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    After two consecutive years of below 5 percent economic growth, India’s new BJP government was inaugurated in May amidst cheers inside and outside the country, in anticipation that business friendly and reform-minded Prime Minister Narendra Modi could put the Indian economy back on track. As part of its commitment to return to substantial growth, the new government has taken the lead in building closer ties with the outside the world, and there has been a steady stream of high-level envoys including Chinese Foreign Minister Wang Yi and U.S. Secretary of State John Kerry.

    With the improvement of foreign relations under Modi, a new light has been shed on relations between India and South Korea. As one of the earliest foreign investors after India’s economic liberalization in 1991, South Korea has been an aggressive yet enthusiastic investor that has continued to maintain its confidence in India’s potential. Bilateral trade is now 40 percent higher than it was in 2009, and South Korean companies including Samsung, LG and Hyundai are among the most respected companies in India, with strong commercial performance. Hoping to expand ties with India under the new government, President Park Geun Hye, who made her first foreign visit of 2014 to India, called Modi on July 22 to congratulate him on his victory in the general election and invited him to visit South Korea, which he accepted.

    As highlighted by the recent phone conversation, as well as by the most recent joint statement between the two countries in January 2014, India and South Korea are looking to expand their strategic partnership by accelerating and further deepening political cooperation, economic engagement and cultural understanding. As India turns to the East for sources of growth and South Korea tries to diversify its oversea markets; and as India attempts to increase its global clout while South Korea seeks to strike a balance in the Northeast Asia; the need to strengthen the strategic partnership between the two countries is becoming even more pressing.

    For South Korea, India carries considerable economic and geopolitical significance. Not only is India an emerging growth market driven by an abundant youth demographic and rapidly rising middle class, it can also be a bridge for Korean businesses to penetrate the Middle East and African markets, considering its long and historical engagement with these two regions. The Modi government’s reforms will provide greater market access for foreign investors, and it could be an important opportunity for Korean investors to strengthen the foundation of their business in the country.

    South Korea can also benefit from science and technology cooperation with India. India’s strength in the software industry can complement South Korea’s global competitiveness in hardware, while India’s competence in space science and technology, as proved by the launch of Asia’s first mission to Mars in November 2013, can help South Korea to realize its goal of becoming an aerospace powerhouse.

    On the geopolitical front, India, as an emerging global power, can contribute to ensuring stability in Asia by engaging in regional affairs and providing a mediating role, as well as rendering valuable support to South Korea on Korean peninsula issues.

    For India, South Korea can be a reliable partner that can help to modernize India’s physical and social infrastructure – from roads to railways, and from schools to sewage treatment plants. In fact, Modi has been frequently mentioning South Korea in his speeches when stressing the importance of infrastructure for economic growth. With Korean investors already showing interests in the Modi government’s plan for a $4 to 5 billion infrastructure fund, cooperation in infrastructure will only help the Indian economy.

    Manufacturing is another area where synergy can be amplified. Goldman Sachs recently published a report titled “How India Can Become the Next Korea,” and concluded that India should adopt the Korean model to boost its manufacturing, considering a remarkable resemblance between the current Indian economy and the South Korean economy of the 1970s. Hyundai Motors is one example of how a Korean car manufacturer has been making an immense contribution to India’s manufacturing sector as well as exports, by producing 600,000 cars a year and exporting 230,000 of them to more than 120 countries from its Chennai plant. With easier access to doing business in India under the new government, more Korean companies from a variety of sectors including defense, shipbuilding, garments, and electronic goods will be investing in India’s future by building factories, transferring commercial technology, and generating more local employment.

    Lastly, South Korea can share its knowledge and expertise in skills development. The South Korean government’s promotion of export-oriented manufacturing industries has made its economic miracle possible, yet its heavy investment in education is another indispensable factor that is worth noting. In particular, technical and vocational education and training has been a key aspect of South Korea’s successful development. In this light, the recent partnership between Samsung and the Ministry of Micro, Small and Medium Enterprises to set up technical schools across India is welcome, and more initiatives and cooperation are to be encouraged.

    In 2013, India and South Korea marked the 40th anniversary of diplomatic ties. Although it was only recently that the engagement between the two countries began to deepen, their relationship has proven beneficial in many different areas. With the new Modi government, there is now a greater expectation and enthusiasm for stronger ties between the two countries, and that opportunity should be seized. The next five years will be an interesting, yet immensely critical period for a sleeping elephant to wake up from its dream, and an ally would be of great help.

    Soyen Park is a senior researcher in the economic section at the Embassy of the Republic of Korea in India and a Ph.d Candidate at Korean University. The views expressed in this article are those of the author and do not necessarily represent the views of, and should not be attributed to, the Korean Embassy in India or the South Korean government.

    Source-(India-South Korea Relations Under the New Modi Government | The Diplomat)
     
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  3. cobra commando

    cobra commando Tharki regiment Veteran Member Senior Member

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    South Korea and India to boost defence ties, infrastructure finance

    SEOUL (Reuters) - South Korea and India agreed on Monday to step up defence cooperation while South Korea pledged $10 billion in finance for infrastructure projects as Indian Prime Minister Narendra Modi arrived for a visit. South Korea's Ministry of Strategy and Finance and the Export-Import Bank of Korea will create a $1 billion Economic Development Cooperation Fund and provide $9 billion in export credits to India, the two countries said in a statement. Modi signed the deal with South Korean President Park Geun-hye at the beginning of a two-day visit to Seoul. Seven out of 10 points in the joint statement were focused on defence cooperation including exchanges between South Korean and Indian shipyards, and their navies. "I have requested President Park to support the participation of Korean companies in the defence sector in India. Her response has been positive," Modi said in remarks at a joint news briefing with the South Korean president. Modi arrived from Mongolia and earlier visited China on a three- country Asian tour aimed at building economic ties. Modi has been active diplomatically since taking office a year ago, and has made a point of forging closer relations with countries on China's periphery - a move seen by some observers as a response to China's own strategic relations with India's neighbours.

    South Korea and India to boost defence ties, infrastructure finance
     
  4. Rowdy

    Rowdy Co ja kurwa czytam! Senior Member

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    Hope these are low interest developmental assistance funds. Much needed.
     
  5. sorcerer

    sorcerer Senior Member Senior Member

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    Shipbuilding Top Priority For Us: Modi At Hyundai Shipyard


    Prime Minister Narendra Modi today visited Hyundai Heavy Industries here to seek increased partnership between Indian shipyards and the South Korean giant to ensure that India’s shipbuilding industry can benefit from its expertise and experience.


    Modi, who flew in here, about 400km, from Seoul and drove 85km from the airport to Hyundai Heavy Industries (HHI), was received by Choi Kil-seon, the Chairman and CEO of HHI, and Kwon Oh-gap, the President and CEO of HHI, besides Mayor of Ulsan Kim Gi Hyeon.


    The Prime Minister, who spent about an hour, discussed various ways to expand cooperation in naval defence, LNG carrier construction and shipbuilding technology.


    "Shipbuilding is a top priority for us," Modi told Choi.

    Modi showed particular interest in HHI's technological prowess in building a wide range of naval vessels as well as high-value added vessels such as LNG carriers.

    [​IMG]
    © AFP 2015/ YONHAP

    India's state-run gas company GAIL is likely to place an order of 11 LNG carriers to haul LNG from the US to India for 20 years, starting 2017.
    HHI recently signed a MoU with India-based engineering major Larsen and Tubro on technological support for construction of LNG carriers.

    The company has undertaken a total of 30 offshore projects for India, beginning with the Mumbai offshore oil platform project in 1982.

    Also, the company has operated construction equipment production lines in Pune since 2008.

    HHI has specialised in shipbuilding, offshore and engineering, marine engines and machinery, electro electric systems, green energy and construction equipment.

    Officials said India wants Korea's involvement in some of the LNG container ships.

    Indian defence sector is also seeking enhancement of cooperation with Korea in shipbuilding.


    Read more: http://in.sputniknews.com/world/20150519/1014515542.html#ixzz3aaa740se
     
  6. sorcerer

    sorcerer Senior Member Senior Member

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    'Make in India': Korean Major Hyundai to Build Warships in India


    Prime Minister Narendra Modi’s Make In India flagship on Tuesday set out on an ambitious course with South Korean major Hyundai Heavy Industries (HHI) and public sector Hindustan Shipyard Limited, Visakhapatnam, joining hands to build warships.


    Another Korean firm, Samsung, will be collaborating with Kochi Shipyard to make liquefied natural gas (LNG) tankers, according to the Hindustan Times.

    A special team of HHI will visit India soon to meet officials of Hindustan Shipyard Ltd as well as officers of the Indian Navy and others to finalise the details of its foray into naval ship-building and other related areas.

    The broader plan agreed upon during Prime Minister Modi’s visit to South Korea entails HHI giving technological assistance and related help in various spheres, making submarines and destroyers included. HHI, which is adept at modular construction in ship-building, would help in bringing down the time frame in the construction of ships besides bringing its high-end technology to its Indian partner.

    This would help the Indian Navy in getting its requirements met in a shorter span of time than usual, and all of it made in India, sources said.
    For example, if all works to plan, a six-year time frame needed to build certain vessels could be brought down to two-and-a-half years, sources explained. HHI’s ship manufacturing facility in Ulsan is the largest shipyard in the world.

    In giving a further fillip to the Make in India initiative, HHI would outsource building of small- and medium-sized ships to India. In future, this venture between HHI and Hindustan Shipyard could also export vessels to other countries. HHI’s world-class technology and experience will be available for logistical development in related areas, including dry docks. A joint working group will work out the final contours of the India-South Korea collaboration in making of ships and LNG tankers.

    “Ship-building is a top priority for us,” Modi told Choi Kil-seon, chairman of Hyundai Heavy Industries. The Prime Minister drove over 85km to the HHI headquarters in Ulsan, the cradle of South Korea’s industrialization effort, where he was received by Choi, HHI president Kwon Oh-gap and mayor Kim Gi-hyeon. HHI has undertaken a total of 30 offshore projects for India, beginning with the Mumbai offshore oil platform project in 1982.

    Make in India was the flavour of Modi’s day out in South Korea on Tuesday. He had one-on-one meetings with the heads of Hyundai, Samsung Electronics, POSCO and LG. The total worth of the companies Modi interacted with is three quarters of $1 trillion.

    Addressing the CEOs in Seoul, Modi outlined the steps taken by his government, which include fast-tracking of approvals in industry and infrastructure, and liberalisation of FDI. “I invite you to India to see the change. We are also prepared to work with you in making conditions more conducive for you,” Modi said in his address to the first meeting of the newly set-up India-South Korea CEOs Forum.


    Read more: http://in.sputniknews.com/south_asia/20150520/1014523047.html#ixzz3ak7ZjUc0
     

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