Lot more room exists between India, Korea to increase trade: Envoy

NEW DELHI: Huge trade and investment opportunities exists between South Korea and India to further boost the two-way commerce between the countries which currently stands at about USD 17 billion.

"The bilateral trade between Korea and India is around USD 17 billion and I am not saying that this is enough. We have a lot more room to expand (this)," South Korean Ambassador to India, Joon-gyu Lee, said here at a function today.

To enhance economic ties, both countries implemented a comprehensive free trade agreement in 2010.

He said that over 400 Korean companies are doing business in India with over USD 3 billion investments.

"When India opened up its economy in 1991, our companies were among the first to recognise the growth potential in India and invested here and Korean brands have become success stories in the country," he said.

The top South Korean diplomat said, today Hyundai Motors has 20 per cent market share in India's passenger car market, while LG and Samsung are market leaders with as much as 40 to 60 per cent market share, respectively, in the consumer goods sector.

"In a country, where Bollywood and cricket are like religion, the Korean companies have stars like Shahrukh Khan and Amir Khan to represent their brands," he added.

The Ambassador also said that top Indian brands like Tata and Mahindra are gaining recognition in South Korea.

He said that under the leadership of Prime Minister Narendra Modi, both the countries would work together for mutually beneficial cooperation.

Speaking at the function, Secretary in the Department of Industrial Policy and Promotion (DIPP), Amitabh Kant, said Indian companies will have to focus on innovation-led manufacturing in order to boost the country's economic growth.

Kant said countries including Japan, Korea and China were able to grow at a much faster pace as their manufacturing sector recorded over 15-16 per cent growth for years due to their private sector's initiatives to create global brands, do innovation and penetrate in the global markets.

"Now it is important for Indians to move away from the world of jugaad (arrangement) into a world of perfection," he said.

Citing example of perfection, Kant said Japanese high speed trains never run late and once when due to an earthquake, a train got delayed by four minutes, a senior official apologised.

In a lighter vain he said that if this is to be done in India, the chairman of the Railway Board will have to keep explaining.

India can learn many things from South Korean experience to boost its manufacturing sector, he said adding there is an urgent need to enhance India's brand as a manufacturing destination.