India-Korea: Building Blocks for $50-Billion Bilateral Trade by 2030 & Other Investments

India-Korea Economic Relations: Aiming for $50 Billion Bilateral Trade by 2030

India and South Korea have a long-standing relationship that has recently seen significant growth in bilateral trade and investments. Celebrating over half a century of diplomatic ties, the two countries have set an ambitious target to reach $50 billion in bilateral trade by 2030. This report delves into the various factors contributing to this goal, with a particular focus on the Sustainable Development Goals (SDGs).

Strengthening Economic Ties

The India Brand Equity Foundation reports a 21.46% increase in bilateral trade between India and Korea, amounting to $27.8 billion in 2022-23. South Korea’s Foreign Direct Investment (FDI) in India has been substantial, with $5.78 billion invested in sectors such as metallurgy, automobiles, and electronics from April 2000 to December 2023.

Strategic Partnerships and Government Initiatives

India and South Korea’s mutual interests are reflected in their respective policies – India’s ‘Act East’ and South Korea’s ‘Act Southern’. The Indo-Pacific Strategy by Seoul identifies New Delhi as a special strategic partner. Government and industry initiatives have been instrumental in facilitating trade and investment, including:

1. The ‘Korea Plus’ programme under the ‘Invest India’ scheme.
2. Annual reviews of the Comprehensive Economic Partnership Agreement (CEPA).
3. The launch of the India-South Korea Electronic Origin Data Exchange System.
4. Collaboration in the start-up ecosystem through initiatives like the ‘Korea-India SME and Start-Up Centre’.

The India Advantage

India’s demographic dividend, low-cost manufacturing, stable government, and robust domestic demand make it an attractive destination for foreign investors. South Korean corporations like Samsung have contributed significantly to FDI inflows, with investments concentrated in manufacturing, trade, financial services, and energy sectors.

Targeted Sectors for Investment

South Korea’s interest in India extends to various sectors, with particular emphasis on electric vehicles, electronics, semiconductors, and manufacturing. The Indian government’s policy push in these areas has created a conducive environment for investments.

• Electric Vehicles: India’s ambitious plans for greening the automotive sector by 2030 have attracted attention from South Korean automotive giants like Hyundai Motors.
• Semiconductor: The Indian semiconductor market is poised for growth, supported by the government’s Semicon India Programme.
• Electronics: With established players like Samsung and LG, South Korea has a significant presence in India’s electronics sector.
• Manufacturing: 100% FDI is allowed in various manufacturing sectors, attracting companies like Lotte, Krafton, and POSCO.

Concluding Thoughts

The increasing confidence and trust between India and South Korea are paving the way for a robust economic partnership. With both countries committed to achieving the SDGs, their collaboration is expected to yield positive outcomes for bilateral trade and investments in the years ahead.

Sources:

• Invest India: Korean Investments in India – Companies & Business Opportunities
• Deloitte: India Set to Enter an Era of Revolution in Live Sports, Semiconductor Chips, AVOD, and 5G
• Press Information Bureau: Indian Semiconductor Mission

Analysis of SDGs in the Article

1. SDGs Addressed in the Article

The article addresses several Sustainable Development Goals (SDGs), particularly:

1. SDG 8: Decent Work and Economic Growth
2. SDG 9: Industry, Innovation and Infrastructure
3. SDG 11: Sustainable Cities and Communities
4. SDG 12: Responsible Consumption and Production
5. SDG 17: Partnerships for the Goals

2. Specific Targets Under the SDGs

Based on the article’s content, the following targets can be identified:

• Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation.
• Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes.
• Target 11.6: Reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management.
• Target 12.2: Achieve the sustainable management and efficient use of natural resources.
• Target 17.11: Significantly increase the exports of developing countries, in particular with a view to doubling the least developed countries’ share of global exports by 2020.

3. Indicators in the Article

The article implies several indicators that can be used to measure progress towards the identified targets:

• Indicator for Target 8.2: Growth rate of real GDP per employed person.
• Indicator for Target 9.4: CO2 emission per unit of value added.
• Indicator for Target 11.6: Proportion of urban solid waste regularly collected and with adequate final discharge out of total urban solid waste generated, by cities.
• Indicator for Target 12.2: Material footprint, material footprint per capita, and material footprint per GDP.
• Indicator for Target 17.11: Developing countries’ and least developed countries’ share of global exports.

4. SDGs, Targets, and Indicators Table

Copyright: Dive into this article, curated with care by SDG Investors Inc. Our advanced AI technology searches through vast amounts of data to spotlight how we are all moving forward with the Sustainable Development Goals. While we own the rights to this content, we invite you to share it to help spread knowledge and spark action on the SDGs.

Fuente: corporate.cyrilamarchandblogs.com

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