India-South Korea Relations: Creative Economy for Inventive Technique

Geun-hye Park, the President of the Republic of Korea, was not too long ago on a pay a visit to to India as her sixth tour since she took office in February 2013. As indicated in her speech at a New Year’s meeting, economy is the keyword in the second year of her tenure, and how ‘creatively’ the Korean economy is revitalised via diplomacy was the main agenda in this check out.

Similar to her prior tours, the expectation is primarily placed on productive ‘sales diplomacy’ that extends Korean company in India and upgrades the Comprehensive Economic Partnership Agreement (CEPA). According to the 2013 Korean Diplomatic White Paper, Korea’s exports to India improved to US$ 11.9 billion although Korea’s imports from India increased to US$ six.9 billion in 2012, and the total trade volume increased by 55 per cent in 2012 compared to 2009, 1 year before CEPA came into force. President Park’s go to to India would institutionally upgrade the agreement to foster favourable circumstances in organization and trade.

The prospect of economic chance in India is deemed promising with India’s twelfth five-year program from 2012 to 2017, spending a total investment of YS$ 1 trillion on infrastructure projects. 1.two billion people in India’s domestic industry also contribute to its potentiality of development that increases the expectation in Korea. India’s sophisticated technologies, confirmed by its space programme and development of data and communications technologies (ICT), is deemed crucial for a ‘creative economy’, the blueprint of President Park for the next three years.

In some techniques, Korean companies in India are usually compared to these of Japan. For instance, Korea formulated CEPA earlier than Japan nevertheless, it is far less active in Foreign Direct Investment (FDI) than Japan. Kwak Chang-ho, Director and Chief Representative of POSCO Research Institute-India, pointed out in a conference held in December 2013 in Seoul that Korea’s FDI in India is merely one-tenth of Japan. He recommended vitalisation of the Indian specific economic zone and FDI incentive policy to improve Korea’s involvement. It was observed that Japan’s FDI had elevated in China that towed international FDI since the 1990s nevertheless, Japan has diversified its FDI and shown varied destinations of investment right after the mid-2000s. In this regard, it is meaningful to quote Park Min-Joon, Director of KOTRA Chennai, who mentioned that analysing Japanese enterprises will expand investment in India to decrease dependence on China, accompanying multifaceted techniques of investment.

Korea’s expectations from relations with India come from the encounter of substantial benefit from ‘China Rising’. Korea has successfully restored relations with China right after the 1992 normalisation despite residual enmity from the Korean War experience and distinct views on the North Korean issue, and has been a single of the beneficiaries of China’s economic improvement with geographic proximity. As of 2012, the volume of trade in between Korea and China totalled US$ 215.1 billion, accounting for 20.1 per cent of Korea’s total trade.

Other important places for bilateral cooperation among India and Korea incorporate military and defence sectors, which are experiencing gradual progress. Shin Kyung-Soo, the deputy head of the international policy division in the Ministry of Defense, South Korea, has underlined that the defence business has been one of the most eye-catching sectors throughout the progress of Indo- Korean relations. With a 1.3 million-sturdy military force and a defence budget that reached almost US$ 40 billion in 2012, modernisation of Indian forces is anticipated to supply a massive market place for defence business. India’s US$ 1.2 billion contract to the Korean firm, Kangnam Corporation, for eight mine-counte-rmeasure vessels with technology transfer situation has set a excellent precedent. What President Park might add by means of her check out would be, very first, strategic dialogue amongst national security offices, second, the foundation for a military intelligence protection agreement, and lastly, furtherance defence sector cooperation.

Broadly speaking, a frequent strategic interest is becoming envisioned in between the two countries, which are strongly necessary to elevate relations to a genuine strategic partnership. It was by way of the Bush administration that the US and India discovered areas to cooperate in, provided worsening US-China relations and the Pakistan threat with China working behind the scenes. It is simple to see that India and Japan would uncover stronger strategic commonalities during the Japanese Prime Minister’s pay a visit to in January, provided the close relations between Japan and India and the geopolitical predicament of territorial disputes to China’s east and west. It is the exact same with Korea-India relations – typical strategic interests would additional facilitate the cooperation. However, Korea’s attempts need to not depend on the US-Japan-Korea trilateral alliance, nor ought to it be indifferent to India’s core interests. Owing to this, President Park’s initiative of a ‘creative economy’ is anticipated to additional evolve into the mapping out of a ‘creative strategy’ in Korea-India relations.