India and the Republic of Korea will intensify efforts to expand bilateral trade to $5 billion. The two countries have also agreed to improve market access for products of both countries.
Expressing appreciation at the recent investment and trade liberalisation measures taken by the Indian government, the Korean minister of trade Han Duck-Soo said Korean investment in India had gone up significantly from $180 million in 1995 to $890 million in January 2000. This makes Korea the fourth-largest foreign investor in India. He was speaking at the Third Indo-Korea Trade Ministers Meeting.
Korean investment in India will continue to increase in the coming years due to the economic recovery in the two countries, he added.
To increase bilateral trade and investment, both sides agreed on the need to enhance bilateral cooperation in the field of small and medium enterprises, including in information technology.
The Indian side expressed strong interest in expanding export of items such as rice, seafood, spices and essential oils, auto components, dyes, drugs and pharmaceutical and iron and steel to Korea. Union commerce minister Murasoli Maran also urged the Korean side to facilitate participation of Indian companies in the Korean government's procurement programmes.
Government procurement in Korea follows a transparent system based on international tendering and, in the recent past, some Indian companies had procured orders on this basis, said Han Duck-Soo.
However, the sanitation issue is important here, he added. As a precursor to the import of agricultural commodities, the Indian side would have to undertake pest risk assessment studies, he said.
The Korean minister expressed concern on the level of tariffs as well as anti-dumping duties on Korean products.
He also cited difficulties impeding greater Korean investment in India due to restrictions on remittance of profits, exit policy and extension of commercial visa.
Both sides have also agreed to increase efforts to encourage greater participation by Korean companies in infrastructure development, including renovation and upgradation of port facilities in India.
In the area of information technology, both sides have broadly agreed to pursue a strategic alliance between the private sectors of the two countries, particularly in e-commerce and software industries.
The Korean side also expressed interest in launching joint projects involving the Korea Institute of Multimedia Contents and Software and India's National Association of Software and Services Companies. Korea also advocated a memorandum of understanding on mutual cooperation between the two institutes.
At present, bilateral trade between the two countries is about $1.4 billion.
India's exports to Korea are valued at only $ 274.32 million, while India's imports from Korea amount to $1165.4 million.
