Published on : May 20, 2015
During his visit to South Korea, Indian Prime Minister Narendra Modi promised a more stable, transparent and predictable taxation system to channel more foreign direct investment to India. South Korea ranks only 14th in FDI flows in India. While addressing South Korean CEOs in Seoul, Modi asked for collaboration with Korean businesses in industries such as steel making, IT and electronics, railways, and ship building and housing to boost the Indian manufacturing sector.
The prime minister aims to promote the manufacturing sector in India to create more job opportunities for the youth. Citing “Make in India” campaign as an initiative to build India into a global manufacturing hub, Modi mentioned that the manufacturing sector is committed towards cleaner and greener development along with “Zero defect Zero effect” manufacturing.
Presently, a number of South Korean companies such as Hyundai Motor, are working in India. Pointing towards the low volume of FDI from South Korea, Modi stressed that the policy environment in the country is changing and it would be beneficial for Korean businesses to explore the Indian market. He spoke about his government’s plan to upgrade the railways and the highways in the country. The railways sector has been opened for 100% FDI. Also, under the project “Sagarmala”, old ports are being modernized and new products are being built up. Modi said that he is hopeful about the two nations working together on several possible opportunities such as the potential for cooperation between Korea’s hardware and India’s software industry.