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India Poised as Key Manufacturing, Export Hub for South Korea: Experts

Experts have identified India as a potential key manufacturing and export hub for South Korea due to global supply chain shifts. They suggested creating a dedicated industrial complex to ease market entry for Korean companies. India's large population and growing GDP make it an attractive market despite infrastructure challenges. Recent bilateral agreements aim to strengthen economic ties and expand trade between the two nations.

Key Points: India as Key Manufacturing Hub for South Korea

  • India seen as key manufacturing hub amid global supply chain shifts
  • Experts suggest dedicated industrial complex for Korean firms
  • Korean companies currently focus on importing intermediate goods for India
  • Bilateral agreements signed to boost industrial cooperation and trade
2 min read

India can become key manufacturing, export hub for South Korea: Experts

Experts say India can become a major manufacturing and export hub for South Korea amid global supply chain shifts, suggesting a dedicated industrial complex.

"India is emerging as a global manufacturing hub with a population of some 1.4 billion - Experts at economic research institutes"

Seoul, May 11

India can serve as a prominent manufacturing and export hub for South Korea amid recent shifts in global supply chains, local experts said on Monday, as Seoul is pushing to deepen its economic ties with the world's most populous nation.

In a meeting with Industry Minister Kim Jung-kwan, experts at major economic research institutes and trade agencies here made the assessment, calling for a detailed strategy to help Korean companies expand their footprint in the Indian market, according to the Ministry of Trade, Industry and Resources, reports Yonhap news agency.

The meeting was held to discuss ways to help the country expand its economic cooperation with India in response to shifts in global supply chains and trade protectionist measures of major economies.

The experts said India is emerging as a global manufacturing hub with a population of some 1.4 billion, and a gross domestic product (GDP) of over $4 trillion. Despite such potential, the country as a whole has been a rather difficult market for Korean companies to enter due to the lack of infrastructure and a complicated regulatory system, according to the ministry.

The creation of a dedicated industrial complex for Korean companies in India could help lower the burden for Korean firms operating or wishing to operate in the country, they suggested.

They added that Korean companies in India are currently focused on importing intermediate goods to produce products targeting the Indian market, calling for efforts to also make India a global export hub for Korea.

During his visit to India last month, the Korean industry minister and his Indian counterpart, Piyush Goyal, agreed to newly establish a joint committee to promote industrial cooperation between the two countries, while Trade Minister Yeo Han-koo signed a joint statement with Goyal to facilitate negotiations to improve the bilateral comprehensive economic partnership agreement.

The agreements were made as the two ministers accompanied President Lee Jae Myung on his state visit to India for a leaders' summit, where they agreed to cooperate on energy supply chains and expand bilateral trade and investment.

During the event, 20 memorandums of understanding were also signed between Korean and Indian companies for collaboration in the steel, shipbuilding, energy and other sectors.

- IANS

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Reader Comments

P
Priya S
While this sounds promising, we need to be cautious. The article mentions 'complicated regulatory system' and 'lack of infrastructure' as hurdles. If we want to attract foreign investment, we must sort out these issues first. Otherwise, it's just talk. Hope the government takes concrete steps to improve Ease of Doing Business.
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Vikram M
Korea has world-class tech and manufacturing expertise. If they set up base here, it could mean more jobs for Indians and technology transfer. But let's not forget the recent geopolitical tensions – we need to ensure India's strategic interests are protected too. Make in India with Korean collaboration? Yes please!
S
Sarah B
Sounds like good news for global supply chain diversification. India's market size is huge, and if Korea uses it as a base for exports, it could be a win-win. But infrastructure is key – hope the Modi government prioritizes that. Also, Korean companies should learn from their consumer electronics success in India.
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Rohit L
Ab toh Korea aur India ki jodi perfect hai! 😄 From Samsung to Hyundai, they already have a strong presence. If they can set up more complex manufacturing here – like semiconductors or ships – that would be a game changer. But we need consistent policies, not flip-flop like on FDI rules.

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