New Delhi: To promote economic cooperation between India and South Korea, a Comprehensive Economic Partnership Agreement (CEPA) will be signed this year, said Mr Lee Myung Bak, former mayor, Seoul, Metropolitan Government, South Korea , at a meeting organized by Confederation of Indian Industry (CII) on 12April.
The launch of a South Korea – India Commission for a better future was proposed by MrBak. This would look at the need of new Asian strategy while drawing a comprehensive roadmap to expand cooperation between the two countries.
Economic exchanges between the two countries have been very active in investment though Indian investors have been slow in investing in Korea compared to Korean companies. India is world leader in computer software and data processing whereas Korea is a world leader in IT hardware and infrastructure.
According to Mr. Bak India-South -Korean alliance can lead to dominance of IT field in the world market. Indian companies can list their equity on the South Korea Exchange and get assistance of South Korea Exchange in raising capital by issuing bonds in South Korea. South Korean companies are willing to fund infrastructure projects in India .
South Korea and India have agreed to forge CEPA by the year end; bilateral trade is expected to rise to $10 bn by 2008; liberalization of goods under CEPA would bring about an overall increase in trade flow between the two economies and promote further inter-industry trade.
India’s cost effective human resources will compliment the rising wages and labour scarcity in South Korea. India ’s competencies in pharmaceuticals and research in bio-nano technology will ensure emergence of new healthcare devices and medicine utilizing bio-diversity of both countries.
According to Mr Subodh Bhargava, former president, CII, “there is potential for fruitful exchange between the two countries in the knowledge driven economy, manufacturing, infrastructure, science and technology, making any long term partnership mutually rewarding”.
IDFC, Sify and Hyundai Motors made presentations to Mr Lee on the business opportunities in India in the growing sectors of Infrastructure, IT and Auto.