Hon’ble Pranab Mukherjee was elected as the 13th President of India on 25 July 2012, having served the nation with great distinction, in various capacities for over four decades. I am gratified that a special issue of ‘Diplomacy’ is being brought out to mark his elevation to the highest office in India. President Mukherjee has been a strong votary of India- South Korea relations having visited this great country on a number of occasions, including as External Affairs Minister in 2007 and twice as Finance Minister for G20 meetings in 2010.
India – South Korea relations, anchored in the strong foundation of historical & cultural affinities, democracy and a unique convergence of interests, have been transformed in recent years. It was decided in January 2010 to elevate the ties to the level of Strategic Partnership.
Korean and Indian histories are inter-twined in many respects. We are both ancient countries whose contacts date back to at least two millennia. It is believed that an Indian princess Suriratna from Ayodhya came to Korea in 48 AD, married King Kim Suro and became Queen Huh Hwang-ok. Millions of Koreans trace their lineage to this union. India is regarded as the spiritual home by Buddhists in Korea, who comprise about one-fourth of the country’s population. Every year, tens of thousands of Koreans travel to India on pilgrimage of Buddhist sites. India, also the land of Gandhi and Tagore, has always nurtured great warmth and friendship for Korea. Tagore’s prophetic poem ‘Lamp of the East’ penned in 1929 still resonates in Korean hearts. To honour the memory of this great poet-laureate, his bust was unveiled in Seoul’s Jongno district, in May 2011.
Given the keen and abiding interest in each other’s culture and traditions, a decision was taken during the State visit of President Lee Myung-bak to India in January 2010 to open cultural centres in both capitals. The Indian Cultural Centre was established in Seoul in April 2011. Accomplished instructors from India are now interalia taking regular Yoga and Kathak (classical Indian dance) classes, which are very popular. The Korean Cultural Centre is expected to open in New Delhi later this year. These steps would further strengthen bridges of cultural appreciation and understanding.
One of the hallmarks of our ties has been regular high level exchanges. To follow up on President Lee’s visit, President of India Hon’ble Pratibha Patil paid a State visit to Korea (ROK) in May 2011. Prime Minister of India Dr. Manmohan Singh came on an official visit to Seoul on 24-25 March 2012.
Managing Editor of Korea’s JoongAng Ilbo travelled to New Delhi on the eve of Prime Minister’s visit to interview him. He requested the Prime Minister, an eminent economist and father of India’s economic reforms, to describe India in one word and also help him understand how that adjective applied to India. ‘Elephant’ said a thoughtful Premier, as it may be slow to move, but once it does, there is no stopping it. President Lee, who had read the interview disagreed with Dr. Singh, remarking that the Indian elephant was already up and running.
India is indeed, on the move. During the last seven years, average GDP growth has been around 8 per cent. The country’s GDP is likely to cross the $ 2 trillion mark soon. A healthy saving rate of 33 - 35 per cent of GDP is fuelling economic growth and development. Korean companies and entrepreneurs, who have made a mark for themselves in the world, are actively servicing India’s huge retail market, estimated at over $ 500 billon and growing annually at around 14%.
Naturally, two-way trade and investments are flourishing. India and Korea operationalized the Comprehensive Economic Partnership Agreement (CEPA) on 1 January 2010, which led to a 70 per cent increase in trade by the end of 2011 to $ 20.6 billion. A trade target of $ 40 billion has been set for 2015 which is easily achievable. To facilitate bilateral business and economic engagement, the Indian Chamber of Commerce in Korea (ICCK) was set up in 2010 (http://www.indochamkorea.org/).
Korean companies like Samsung and LG already have more than a 50 per cent share of India’s home appliances market. Hyundai accounts for 19 per cent of compact car market share, producing over 600,000 vehicles in its two units in Chennai (Tamil Nadu). One of the happy outcomes of India’s growth story is a 250 million strong middle-class – young, educated and with good buying power. The footprint of Indian business houses or mini multi-nationals like Tata, Reliance, Birlas, Mahindra & Mahindra, Airtel, Infosys, TCS etc. is increasing globally. During the decade ending 2011, Indian companies invested $ 129 billon abroad while $ 158 billion was received as foreign direct investment (FDI) in India. The investment inflows into the country, in recent years have soared to $ 25 billion annually.
Some of the biggest industrial names from India, like Tata, Birla and Mahindra & Mahindra are already present in Korea. Aditya Birla Group is operating Novelis, an aluminum products company with an investment of around $ 600 million. Tata Motors bought out Daewoo Heavy Vehicles Company a few years ago, which is doing very well. Mahindra & Mahindra took over the ailing Ssangyong Motors with an investment of close to half a million dollars in 2010 and is nursing it back to health. It proposes to introduce new SUV models for the domestic and international markets including India. Some of the leading Indian IT companies are also present in Korea.
Today India is the third largest and Korea the fourth largest economies in Asia. Furthermore, we are both market economies that are complementary to each other. India’s IT industry for example, is likely to cross $ 100 billion this year, including software exports of over $ 65 billion & a domestic IT hardware market of more than $ 20 billion. It is expanding by leaps and bounds and has a healthy demand for high quality Korean products. Similarly, Korean construction companies, who have an enviable track record globally, are entering India in growing numbers to take advantage of the opportunities on offer, by the huge $ 1 trillion investment that India is making, over a 5-6 year period, in infrastructure development, especially in highways, metros, power sector etc.
During the visit of President Pratibha Patil to Seoul, both countries signed an agreement on Civil Nuclear Cooperation. India expects to enhance nuclear power capacity from the present 5000 MW to 60,000 MW by 2030 and is keen to partner with Korea, which is operating 22 state-of-the-art nuclear power plants. Korean companies like Doosan are actively working with their Indian partners in setting up thermal power projects in India. India plans to add 15-20,000 MW of power generation capacity every year.
It is gratifying that India – Korea cooperation is becoming truly multi-faceted, given that we enjoy a common outlook and convergence of views, on practically all issues of regional and international importance. A full-fledged Military Wing will be set up at the Embassy of India, Seoul by October 2012, reflective of a steady expansion in our security and defence ties. Last June, four Indian naval vessels paid a port call at Busan and also participated in a joint exercise with Korean Navy. We look forward to welcoming the Korean Defence Minister to India soon. Given the difficult security environment that we live in, India has become the largest buyer of defence equipment in the world. It is to the mutual benefit of India and Korea to undertake joint development and production of defence equipment, which is on the cards.
While the world is aging, democratic India is getting younger and more literate. Today it is home to the third largest pool of scientific and technical manpower in the world. Korea is regarded as a world leader in technology, investing over 3.5% of GDP every year on R&D. As such, a $ 10 million joint fund on scientific and technology research has been set up between the two countries. Our scientists have begun to do quality research in areas like energy, nano technology, IT, etc. To cite another example, in August 2012, the Chairman of Korean National Election Commission (NEC) visited India when a MOU of Cooperation between the Indian Election Commission and NEC was concluded.
India and Korea have historically attached great importance to education and Human Resource Development. This sector is emerging as one of the thrust areas of cooperation. Presently, around 2500 Koreans including 1500 school children are studying English, IT and Management in India. Around 900 Indian scholars are pursuing post-graduate and Ph. D programmes, mostly in pure sciences in Korea. A number of Indian teachers / professors are now working in different Korean educational institutions and universities in ROK. Many of our educational institutions and think tanks have established institutional cooperation agreements. Every year a large number of Indian civil servants and MBA students visit Korea for familiarization programmes and vice versa. For example, the Global Management Research Institute of Korea, offers an ‘India Advanced Management Program’ (www.indiaamp.com) for Korean CEOs, political leaders, executives & senior officials, which has been attracting batches of 40 every year. The ongoing program was commenced on 21 August 2012.
There is the broadest consensus across the political spectrum in both countries for the closest of bilateral ties, which augurs well for the future of our relations. India regards Korea as key to its ‘Look East’ policy and appreciates the consistent support forthcoming from Seoul for New Delhi’s closer engagement with the East Asian and Asia Pacific region.
The year 2013 happens to be the 40th anniversary year of establishment of diplomatic relations between India and Korea, which is proposed to be celebrated in a befitting manner, to further accelerate the process of multi-sectoral cooperation.
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