Kukmin Daily interview with Ambassador of India Vishnu Prakash.
Ambassador of India Vishnu Prakash says“Korean Companies are Accustomed to Ppali-Ppali, but Patience is Key to Entering Indian Market”
* “President Park Geun-hye has left behind a large number of admirers in India”
* By 2030, India will be the largest market in the world.
* Korean companies are accustomed to the Ppali-ppali culture in Korea, but patience and taking a long term view, are key to success in the Indian market”.
Ambassador of India, Vishnu Prakash underlined the significance of the summit between President Park and the Indian Prime Minister Dr. Manmohan Singh, saying “the fact that President Park chose India as the destination of her first overseas trip this year, signifies the importance of Korea-India relations”. Ambassador Prakash met Kukmin Daily on 27th January and shared his thoughts on Korea-India bilateral relations.
Q: Were there any interesting anecdotes during President Park’s visit to India, which have not been reported?
A:President Park arrived at the Air Force base in New Delhi and was a bit surprised by the Indian ‘winter’ “It is more like early summer in Korea” she happily remarked. I was quite impressed by her high command of English. An engineering Major, President Park evinced considerable interest in areas like IT and creative economy. She is well-informed about Indian cuisine and culture. She also hopes to come back to India see the Taj Mahal. It was sheer pleasure having her in India.
Q: Please tell us about the economic cooperation between India and Korea – apart from the large-scale investments by Mahindra & Mahindra and POSCO, are there any projects that are going on between our two countries?
A:Novelis, now an Indian company, has invested around $ 2 billion in Korea. It is a manufacturer of aluminium sheets and has two plants in Korea. On the other hand KOTRA has taken a decision to set up a Korean Industrial Park in an area of 250 acres in Rajasthan. Mostly Korean SMEs will be represented there.
Q: How is the performance of Korean companies in India? Is there any advice for prospective Korean companies seeking opportunities in the Indian market?
A:Korean companies account for nearly 55% share of total consumer electronics market in India. Their performance has been outstanding and that is because they are competitive in quality, price and after-sales-service. India is expected to become the largest market in the world by 2030. Its middle class will be around 600 million. It is a democracy with huge diversity. Therefore it takes time to build consensus on occasions. There is ppali-ppali culture in Korea, but, when you enter the Indian market, patience is key. Korean companies should take a long term view of India.
Q: The growth of India was remarkable since 1990s when you opened up the economy. What do you think is the strength of the Indian economy?
A: First of all, we have young population. Even though the world is aging, India is getting younger. By 2020, the average age in India will be 29, where as it will be 37 in China and 49 in Europe. Second, we have passion for education. We are strong in maths and English. Some 300 million Indians speak English as a second language. Also, India is a free market economy. Lastly it will become the third-largest economy in the world by 2030. By 2020, it will be a middle income country and a moderately developed country by 2030.
Q: China has been largely dependent on manufacturing for its economic growth, whereas it was the service sector including IT and Bio-technology in India’s case. Was there any circumstance for you to choose these industries?
A: In 1991, when we opened our economy, we worked on industrialisation and we wanted the manufacturing sector to grow as well. Manufacturing currently accounts for 17% of our GDP and we are targeting 27%. However, you need infrastructure and large investment for its growth and it needs time. On the other hand, there were resources that were readily available – young and educated population. They speak English fluently and are strong in maths. It was a natural choice for us to use this resource and focus on the service sector.
Q: An Indian Cultural Centre opened in Busan last December.
A: India and Korea have traditionally enjoyed close ties. In 48AD, King Kim Su-ro married an Indian princess from Ayodhya. The great Indian poet and Nobel laureate Tagore wrote a poem “Lamp of East” in 1929, prophesising a great future for Korea. During the Korean War, India sent a medical mission to Korea. The people of India and Korea have friendship and goodwill for each other. In 2011, an Indian Cultural Centre was opened in Seoul and a Korean Cultural Centre in New Delhi in 2012. The people of Busan, in particular, have strong interest in the Indian culture, and we are happy that ICC Busan has been established. We plan to have a number of events in Busan including an Indian Film Festival.
Q:After your posting as a spokesperson at your Ministry, you chose to come to Korea – was there any reason to choose Korea?
A: First of all, East Asia is a very important region for India. The future of India is closely linked with this region. I have been posted to Japan, China and Russia – but was missing one important country: Korea. There was also a personal reason. During the time of the Asian financial crisis, I read that Korean women lined up in front of banks to donate their gold. If you ask my wife to donate her gold, she perhaps would instead say “take my husband”. (Laughs!) Since then, my fascination for Korea grew and I volunteered to come to Korea.
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