A day before she arrives here on a four-day State visit, the South Korean President, Park Geun-hye today called for a “more stable” investment environment in India in wake of Posco’s $8.4-billion steel plant episode.
The South Korean President, who will be accompanied by senior ministers for foreign affairs, trade and science, will hold extensive talks with leaders, including Prime Minister Manmohan Singh, during which India will be flagging the issue of trade deficit and market access.
While the two sides are working on some pacts to be inked during the visit, Joint Secretary in-charge of the division in the External Affairs Ministry, Gautam Bambawale has said trade deficit and more access for Indian firms in the competitive areas of IT and pharma among others issues on economic front will be raised with the Korean side.
Park also suggested amending of laws on double taxation to improve the investments between Korea and India. The two countries have already inked a Comprehensive Economic Partnership Agreement in 2009 which came into force in 2010.
Bilateral trade in 2011 crossed $20.5 billion registering a 70 per cent growth over a two year period. A revised trade target of $40 billion by 2015 was established between the two countries in 2012.
“Moreover with regard to investment, I would like to draw your attention to POSCO steel plant in Odisha. The project has long been stalled on account of various reasons and I sincerely hope we can make that project into a reality as soon as possible and thereby instil greater confidence about the investment climate for potential companies in India and reinvigorate investments by small and medium sized enterprises into India.
“We can look to the creation of stable environment for such investors through designated exclusive industrial parks for SMEs. This would help encourage greater investments and be conducive to achieving the goal by 2020,” she said in an interview to DD News.
Nearly seven years after it inked the pact for building a steel plant in Odisha, Korean firm Posco got the nod from the Environmental Ministry last week, paving the way for it to proceed with the project.