Korean companies urged to set up manufacturing and R&D bases in India

The growing Indian economy, in the coming three to four years, would attract large and small companies from across the developed world and it would be too late to scout for manufacturing opportunities then, Korean companies were told.

The Dollar Business Bureau Korea-Manufacturing-The-Dollar-Business The future for Korean companies is not in Korea, it is in India, both for manufacturing for the domestic market and export. This was stated by Amitabh Kant, Secretary, Department of Industrial Policy and Promotion (DIPP), at a business meeting on ‘Make in India: Contribution of Korean Companies’ held on Friday. The event was jointly organized by the Federation of Indian Chambers of Commerce and Industry (FICCI), Korea International Trade Association (KITA) and the Korean Chamber of Commerce India (Kocham India). The DIPP Secretary urged the Korean companies to invest, set up their manufacturing and research and development (R&D) bases in India. He expressed hope that India will achieve a double-digit growth in the coming three to four years. The Indian economy is growing by 7% and in the long term, GDP is expected to grow between 9% and 10%, he said, adding, “India is focused on manufacturing, digital technologies and skill development with all the three integrated together.” He said that the growing Indian economy, in the coming three to four years will attract large and small companies from across the developed world. In that case, it would be too late to scout for manufacturing opportunities then, he told Korean companies. “We are not just looking east, we are acting east,” he added. Expressing India’s willingness to invite small and medium Korean companies, he said, “India is ready to create a plug and play mode for the Korean companies.” Making a strong pitch for Make in India programme, the DIPP Secretary urged auto major Hyundai to set up a second plant in India, while suggesting the company’s CEO not to miss such a chance. Jyotsna Suri, President, FICCI, in her address, pointed out the role of Korean companies in identifying the real potential of India. She said that the investments by the Korean companies in India is concentrated mainly in the manufacturing sector which accounts for 86%, wholesale and retail trade (6%), construction (1.2%) and financial & insurance activities (1.3%). Referring to the Korean Exim Bank data, she said Korean companies’ investments in India accounts to more than US $ 3.5 billion till December 2014 and 641 Korean companies have invested in India. In comparision to Korea's worldwide investment which is estimated to be about $270 billion, there is a scope to invest a lot more in India, she added. “We look forward to more Korean investments in Delhi Mumbai Industrial Corridor, National Industrial Manufacturing Zones and Smart Cities, as well as in areas other than manufacturing such as IT and services,” she said.