PM Modi’s Korea visit strengthens ties

Prime Minister Shri Narendra Modi paid state visit to South Korea over February 21-22 at the invitation of President Moon Jae-in

February 23, 2019

Improving diplomatic relations between the nations have offered improved trade and investment opportunities as well as stronger people to people exchanges

This tie-up has been accentuated by the harmony of India’s Act East Policy and South Korea’s New Southern Policy, both seek greater outreach in neighbourhood

India is one of South Korea’s top 10 global trade partners and India is the 6th largest export destination for South Korean goods, with steady growth in trade volume

At the India-Korea Business Symposium, PM Modi said that India needs investments of over US$700 billion by 2022 in modern infrastructure to drive economic growth

Prime Minister Shri Narendra Modi paid state visit to South Korea over February 21-22 at the invitation of President Moon Jae-in. The visit marked PM Modi’s second trip to South Korea as well as his second summit meeting with President Moon. Improving diplomatic relations between the nations have offered improved trade and investment opportunities as well as stronger people to people exchanges. This tie-up has been accentuated by the harmony of India’s Act East Policy and South Korea’s New Southern Policy, both of which seek to establish greater outreach in the nations’ extended neighbourhoods.

PM Modi was also conferred with the Seoul Peace Prize in recognition of his national and international contributions during the visit. He also met with business leaders and members of the Indian community. President Moon and First Lady Mrs Kim Jung-sook had visited India in July 2018, during when Samsung Electronics had opened the world’s largest mobile phone manufacturing plant near Delhi. South Korean enterprises have contributed to the ‘Make in India’ initiative by setting up production and R&D operations, covering scientific research to consumer electronics to heavy engineering to automobile.

To further boost trade and investment ties, PM Modi has had three interactions with South Korean business leaders over the last year. India is one of South Korea’s top 10 trade partners and India is the 6th largest export destination for South Korean goods. Meanwhile, South Korean investments into India have reached US$6 billion. After India’s trade with South Korea reached US$21.5 billion in 2018, talks to upgrade Comprehensive Economic Partnership Agreement have been fast-tracked to achieve bilateral trade target of US$50 billion by 2030. More than 600 South Korean companies have invested in India.

At the India-Korea Business Symposium, PM Modi said that India needs investments worth over US$700 billion by 2022 in infrastructure, covering transportation, power, ports, shipbuilding, housing and urban infrastructure. These can be met with technological capabilities available in South Korea. Recognizing the importance of supporting India’s infrastructure development, India and South Korea have allotted US$10 billion under South Korea’s Economic Development Cooperation Fund and Export Credit, to finance such projects. The two nations have also set up a number of joint groups to drive future innovation.