ndia-South Korea set $30 billion trade target by 2014:
- India- South Korea ties expected to gain a new level, with both countries on Thursday agreed to set a $30 billion bilateral trade turnover target to be achieved by 2014.
- It was on the occasion of the review of the Indian-South Korea Comprehensive Economic Partnership Agreement (CEPA), implemented year ago both countries said that huge business opportunities were available for India and South Korea companies in each other region.
- It was after the implementation of free trade pact, the two way trade between the countries has grown by about 45 per cent during January-November 2010 t0 $15.6 billion.
- The investments in India, in the Banking sector was the voice of Korean Minister Mr. Jong-Hoon, he said that there is need for some more Korean Bank branches here to facilitate Korean business in India.
- South Korea also planning to open a cultural centre here, which would give a first-hand experience to Indians about the Korean culture.
- India expressed its likeness to collaborate and partner in sectors such as manufacturing, engineering, electronics, automobile, ship building, IT and education, as in these areas Korea has a greater edge.
Indian and South Korean automobile companies could join hands to develop a model mainly for bigger East Asian markets.
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India-South Korea:
1. princess of Ayodhya married Kim Suro, the King of Gaya
2. Buddhism: dominant religion there
3. academic exchanges:
Korea: The Korean Foundation provides scholarships
India:JNU, Delhi University and The English and Foreign Languages University (EFLU), Hyderabad
4.cultural and social exchanges, strides have also been made in economic, trade and diplomatic ties.
5. civil nuclear cooperation agreement between India and the ROK,summit meet in July 2011
6. Jaitapur nuclear power plant by French company, Areva
7. Lee Myung-bak is president of ROK (Republic of south korea)
8. Because of Fukushima disaster 11th March 2011
9. Protest against Jaitapur(Maharashtra) nuclear power plant by French company, Areva.
10.South Korea specializes in the
construction sector whether it be plants, housing, roads or ports. President Lee is himself an engineer and was earlier the
chairman of the Hyundai Company which is diversified into automobiles, construction and ship-building. It is for this reason that
South Korea can confidently provide the best earthquake-resistant and safe plants to India under the auspices of the civilian
cooperation agreement. South Korea has developed a world-class civil nuclear power plant which contributes up to 40 per cent of
the total electricity of South Korea, the safety standards of which has the IAEA stamp of approval.
11. Social Security Agreement implementation arrangements, aviation and shipping
agreements and the prevention of double taxation. India and South Korea will meet and discuss important strategic issues in the
Nuclear Summit 2012 to be held in Seoul, ROK. In addition, both countries also cooperate at the international level on issues of
mutual interest such as climate change.
12. Over 300 Korean companies working in India have made huge FDI
13. Plan to establish mega steel power plant in Odisha
(Orissa) by the world renowned steel company, POSCO.
14. The CEPA (Comprehensive Economic Cooperation Agreement) is progressing
well in trade investment and human exchange and has further potential to improve the Indo-South Korean relationship.
Scope for Improvement:
15. South Korea has a long experience of modern ship-building; the shipbuilding industries are very specialized and
possess state-of-the-art technologies, such as the Hyundai Ship-building Company.
India is an emerging power in South Asia
whose strategic maritime location at the head of the Indian being can hardly be ignored. In this regard, therefore, South Korean
ship-building technology and expertise can be of great assistance to India for commercial ship-building as well as for defence
purposes, such as the construction of aircraft carriers.
16.Another area of cooperation is in the defence sector, particularly joint military and naval exercises, which would help both
countries to modernize their training processes. South Korea has made advancements in anti-guerrilla warfare operating at the
Corps of Special Warfare, the knowledge of which can be useful to India in managing terrorism and border road development.
India, on its part, is highly skilled in the training of soldiers and army officers. Indian defence institutes such as the National
Defence Academy (Pune), Officers’ Training Academy (Chennai), and Indian Military Academy (Dehradun) are recognized centres
of excellence and hence have a lot of guidance to offer to South Korea.
17Why is 2010 a year of significance for Korea-India relationship?
It is significant because of the conclusion of the Comprehensive Economic Partnership Agreement between the two countries. Korea and India
established their diplomatic ties in 1973. The two countries are bound by close cultural ties, which may be traced back to the ancient past. Buddhism,
India's unique gift to the world, facilitated exchange of ideas and served as a bridge connecting the two civilisations (Korea and India). Close cultural
ties bound Korea and India in the past. In the modern times, the two nations face the common destiny of colonial oppression and the task of nation-building.
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Within the short period of two decades, after India decided to open up its economic and trade relations with East Asian countries, activity has been growing very fast.
Today, with a trade volume of more than $100 billion, East Asia has become India's principal trade partner, leaving its traditional trading partners such as the U.S. and Europe far behind.
India's economic integration into East Asian economies is growing at a fast pace. Today, India has comprehensive partnership agreements with Japan, Korea and the Association of Southeast Asian Nations (ASEAN).
. For the first time since both countries established a diplomatic relationship in 1973, a Korean president was state guest at India's Republic Day functions in 2010 New Delhi.
The CEPA is expected to play a big role in the expansion of the export market of Korea. Under the CEPA, tariffs on Korean auto parts, the biggest export item to India, are to be reduced to 1 percent over an eight-year period from the current average of 12.5 percent.
This will consolidate the Korean auto industry's share in India. A notable feature of the Korea-India CEPA is that goods made at the Gaeseong Industrial Complex, an inter-Korean economic joint venture in North Korea, will be regarded as having been made in South Korea.
India will also benefit from the CEPA agreement in a substantial manner. The CEPA will allow the temporary movement of professional workers, such as computer programmers and engineers, to Korea and India.
Under the CEPA, 163 such professions are allowed access to the Korean services market. This is the first time that Korea has agreed to such a commitment in its bilateral free trade agreements and this will open up opportunities for Indian English teachers and software engineers to work in Korea.
Korea's CEPA with India is the first free trade agreement with a member of the fast growing BRIC (Brazil, Russia, India and China) nations. For India also, it is the first such agreement with a member state of the Organization for Economic Cooperation and Development (OECD). The CEPA is a win-win situation for both countries.
Today there are many potential areas of cooperation between the two countries. Some important areas where huge potential exists are transportation, robotics, engineering sciences, nutrition, food safety, renewable energy, chemical technologies, biochemical technologies, health sciences, medical sciences, materials sciences and information technology.
Economic cooperation, though important, is not the only area where the two countries have been getting closer to each other. Apart from economic cooperation, India and Korea have also been getting closer in the political and security fields. High level political and diplomatic traffic of top leaders has been growing between the two countries in recent years.
The countries have established a ``Long-term Cooperative Partnership for Peace and Prosperity." An India-ROK Foreign Policy and Security Dialogue has been established to promote exchanges and interactions in the defense field, including the safety and security of international maritime traffic, and cooperation between their navies, coast guards and related agencies.
This has been giving a boost to both countries to work in these fields. After 9/11 in the U.S., terrorism has emerged as a major threat to world peace. Terrorism is no longer an individual country's problem or regional problem.
Even though Korea has not been a direct victim of terrorism it has been playing a very active role in fighting this global menace. It is playing a very active role in both Afghanistan and Iraq. There is great potential for cooperation in fighting against terrorism between India and Korea.
Another potential area of cooperation is sea piracy. Lately, sea piracy has been emerging as a serious threat to the smooth flow of trade in the Indian Ocean. Korea has a high stake in the safety of sea lanes of communication as an export-led country.
The Indian navy patrols a large swath of the Indian Ocean, and can play a very important role in curbing this growing problem. The potential of cooperation between the two navies is very high.
Strategic imperatives are also bringing India and Korea closer together. With the emergence of China as a dominant player in the region, the old U.S.-led balance of power has been giving way to new power equations in the region.
The emerging power struggle in the region has been unnerving for small countries like South Korea. Not wanting to be seen as supporting one side over the other, South Korea has been trying to strengthen its relations with other Asian countries as a third party option.
India, which is emerging as an important player in the evolving security paradigm in the region, is getting special attention from Korean policymakers.
The time has come for India to deeply integrate into East Asia. India should start looking at the whole of East Asia, not just its near east neighborhood, as strategic space. India's relations with East Asia and Korea must go beyond economics and expand to security and the strategic sphere as well.
India must strengthen its diplomatic resources, build a strong knowledge pool, and support Indian intellectuals and experts working in the region wholeheartedly with substantial resources to carry out their work and involve themselves more deeply in East Asian affairs.
India's integration into East Asia is an idea whose time has come. Let us work together to make it happen.
The Comprehensive Economic Partnership Agreement (CEPA) is a free trade agreement between India and South Korea.[1] The agreement was signed on August 7, 2009.[2] The signing ceremony took place in Seoul and the agreement was signed by Indian Commerce Minister Anand Sharma and South Korean Commerce Minister Kim Jong-Hoon.[3] The negotiations took three-and-a-half years, with the first session in February 2006. The agreement still needs to pass the South Korean parliament. It passed the Indian parliament.[1] Once passed, the agreement will come into effect sixty days later. The South Korean government expects the agreement to pass in the fall of 2009.[1] The agreement, once passed, will cut South Korean tariffs on 93% of goods from India. India will cut 75% of total tariffs.[2]
The unusual name for the agreement was suggested by India.[1] It is equivalent to a free trade agreement.[1] The agreement will provide better access for the Indian service industry in South Korea.. Services include Information technology, engineering, finance, and the legal field.[4] South Korean car manufactures will see large tariffs cuts to below 1%.[5]
The agreement will ease restrictions on foreign direct investments. Companies can own up to 65% of a company in the other country.[5] Both countries avoided issues over agriculture, fisheries, and mining and choose not to decrease tariffs in those areas. This was due to the very sensitive nature of these sections in the respective countries.[6] Trade between India and South Korea was $15.6 billion in 2008. This is a major increase from 2002, which had a total trade amount of $2.6 billion.[2] The Korea Institute for International Economic Policy believes the agreement will increase trade between the two countries by $3.3 billion.[1] The act came into force on January 1, 2010.
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