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Indo-Korea relations with focus on trade

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A ppt on Bilateral relationship between India and South Korea with special ref to trade; Era Business School, New Delhi (PGDM 2012-14)

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Indo-Korea relations with focus on trade

  1. 1. INDO-KOREA RELATIONS (with special focus on bilateral trade and economic relationship) A Presentation by Col Ajay K Raina, SM
  2. 2. • • • • • • • • • • • • Official name. Taegukgi. Geo size. Population. Size of economy. Ideology. Govt. Domain. Currency. Religion. Capital. Official Language. 소개 Sogae
  3. 3. Sits at a Strategic Location Korea Strait Senkaku islands
  4. 4. Objective To study the relations between India and Korea with special focus on bilateral trade and economic relationship.
  5. 5. Paper to Ppt: Scope • Part 1 – Historical perspective (pre-modern times till 1974). • Part 2 – Building up of trade ties (1974 – 2009). • Part 3 – New surge (2009 till date). • Part 4 – What lies ahead!
  6. 6. PART 1 – HISTORICAL PERSPECTIVE (PRE-MODERN TIMES TILL 1974)
  7. 7. • • • • • • • • • The First Contact 48 AD; Silla. 4th Century AD; T&T. 14th Century – Sultanate & Confucians; Buddhism. Cold era of 500. Colonial cousins. WW II…..Sayonara! 1945 – 38th Parallel. 1948; trying to be pre-1945. 1950 Korean War.
  8. 8. Role of India : 1947-1954 • • • • Newly born babies; course corrections. UNTCOK – 1948. KPS Menon. UN Resolutions:– Who was the aggressor? – Sending troops to Korea. • • • • Vijay Laxmi Pandit and Armistice Agreement’53. CFI. NAM & US; Socialist & Capitalist; To one’s own! 1962 on to 1973.
  9. 9. Part 2 – Building up of trade ties (1974 – 2009)
  10. 10. 1974 - 2000 • • • • • • • • • • Nix trade till 1974. First trade agreement; generic. 1978 bilateral x 36. MFN. 1985 – thaw; double taxation. Collapse of a giant. 1990/91 – SAP+LPG+LE vs Restructuring post CW. 1993 – Narsimha Rao; 1996 – Kim Young-sam. 1996 – Protection of Investment. 1999 – Kim Jong-pil; PSLV & KITSAT-3.
  11. 11. Turn of the Century • 2004 - Roh Moo-hyun; Long-term Cooperative Partnership for Peace and Prosperity. • 2005 - India-RoK Foreign Policy and Security Dialogue; expansion into defence. • Re-assertion of LE policy with economic dimensions. • 2006 – Study Group. • 2009- CEPA. • New era.
  12. 12. The Net Effect
  13. 13. Part 3 – New surge (2009 till date)
  14. 14. Moving on: 2010 & Beyond • Strategic partnership post CEPA. • Multiple fronts from diplomatic to defence to economic to cultural fields. • 2010 - Lee Myung-bak. • 2011 – Pratibha Patil. • 2012 – MM Singh. • 70% jump post CEPA. • Posco – one off. • Aiming to hit 40 Billion by 2015.
  15. 15. Facts and Figures • 20 per cent of the Indian small car market share. • Over 50 per cent of market share for consumer durables. • US$158 billion vs US$129 billion in the last ten years. • Tata & Daewoo trucks; M&M & Ssangyong.
  16. 16. Part 4 – What lies ahead?
  17. 17. Analysis of the Potential • Current trade and investment vs potential. • Korea’s share in India’s global trade volume is less than 3 per cent. • India accounts for only 1.3 per cent of Korea’s total outbound FDI flow. • Challenge of a trade deficit; better access for IT, pharmaceutical and agricultural products. • Healthy recent past and need for a healthier future. • Negotiations between friends to review the implementation of CEPA and examine the need for upgrading. • eg the largest number of pharmaceutical products registered with the US FDA by any foreign country; mangoes are world class and so are many agricultural products.
  18. 18. RoK’ Exports to India %age 8 5 Petrochem 9 Auto parts 18 Semi conductors Machinery 14 Shipping 10 Wireless eqpt LCD Devices 8 Steel 6 22 Others
  19. 19. Indian Exports to RoK %age 11 18 Gems/stones Chemicals 22 Pharma Textiles 24 Agro 9 16 Others
  20. 20. Issues : India’s Outlook • • • • • • • • • • • CEPA & trade barriers. Non trade barriers. Govt policies. Licensing requirements. BIS requirements. Foreign participation in services. Bureaucratic hurdles. Clogged judicial system. Bias in award. Corruption. Licensing and Inspection costs
  21. 21. Issues : RoK • Stiff regulatory framework. • Very high standards and adherence. • KFDA requirements. • KPTA – trade secrets. • Frequently changing labelling patterns. • Appointment of inspectors.
  22. 22. The Road Ahead • IT sector – HW & SW. • Science and Technology – Financials & HR. • Pharmaceutical Industry – R&D, clinical trials, mutual. • Broadcasting- Products & Consumers. • Tourism - History; Buddhism. • Healthcare- Mutual. • Construction and Related Services – Tech & Demand. • HR – Shortage & Plenty
  23. 23. Part 5 – Conclusion • A long association with huge gaps in-between. • Suspicion; search for global entity. • Realities of post cold war. • Strong complementarities. • Shifting bases of economies. • Comparative advantage based. • Dynamic equations. • Miles to go!
  24. 24. 감사합니다 (Gamsahabnida)

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