Korean firms have the edge to succeed in India, says Modi
Seoul
INDIAN Prime Minister Narendra Modi arrived in Seoul on Monday for a two-day visit heavily focused on economic ties with Asia's fourth-largest economy and beefing up investment from South Korean firms.
Following talks with President Park Geun-Hye, Mr Modi told a joint press briefing that the two leaders had agreed their "modest" bilateral trade was falling far short of its potential.
Mr Modi, who took office a year ago, said his visit to South Korea came at a time of renewed momentum in the Indian economy as his government pursues a comprehensive modernisation programme.
"We have a special focus on infrastructure and developing a world-class manufacturing sector. Korea can be a leading partner in this enterprise," he noted.
Mr Modi's trip - part of a six-day East Asia tour - is packed with a whirlwind of meetings with business tycoons from South Korea's largest conglomerates, including Hyundai, Samsung and LG.
All three manufacturing giants operate plants in India where they enjoy sizeable shares of the vast consumer market for cars, smartphones and home appliances.
"Korean companies have the edge to succeed in India," Mr Modi said, who stressed the opportunities being created by his "Make in India" initiative aimed at boosting the nation's relatively weak manufacturing sector.
Hyundai Motor Company, South Korea's largest carmaker, operates two plants in the southern Indian city of Chennai, and expanding that investment is expected to be high on the agenda during a meeting between Mr Modi and Hyundai Motor chairman Chung Mong-Koo on Tuesday.
A planned meeting with JK Shin - the head of Samsung's mobile unit -is also expected to help accelerate the South Korean firm's reported plans to build a third plant in India, one of the world's fastest-growing handset markets. And Mr Modi was scheduled to visit the main shipyard of the world's largest shipbuilder, Hyundai Heavy Industries, in Ulsan to meet its chairman Choi Kil-Seon.
India also needs help upgrading its outdated transport infrastructure - a constant source of frustration among foreign firms operating there.
South Korea's Finance Ministry and the Export-Import Bank of Korea said on Monday they intended to provide US$10 billion in loans and funding for Indian infrastructure projects. AFP
