South Korea on Sunday pledged $10 billion for financing infrastructure projects, including smart cities and railways, in India. The announcement followed a summit meeting between Indian Prime Minister Narendra Modi and South Korean President Park Geun-hye.
The pledge comprises an “Economic Development Cooperation Fund ($1 billion) and export credits ($9 billion) for priority sectors, including smart cities, railways, power generation and transmission, and other sectors to be agreed,” said the statement. Modi's Korea visit was aimed at getting Korean investment in sectors like shipbuilding, which is lagging due to non-availability of technology in India. The statement further said President Park welcomed India's `Make in India' initiative as it provides new avenues to enrich and add substance to bilateral relations. Modi invited Korea to become a privileged partner in `Make in India' to which Park conveyed her appreciation.
The leaders called upon the business community from India and Korea to leverage the enormous synergies between their economies for mutual prosperity. The statement further said the leaders welcomed the interest of companies of the two countries in cooperation in the area of shipbuilding, including the construction of Indian vessels such as LNG carriers.
7 agreements signed
India and South Korea signed seven agreements, including one on avoidance of double taxation. Modi, who arrived in S Korea from Mongolia on the last leg of his three-nation tour, held wide-ranging talks with South Korean President. “We have agreed to upgrade the bilateral relationship to ‘Special Strategic Partnership,’” Modi said at a joint press interaction with President Park after their “excellent” talks.
“We have laid the foundation for a relationship that two major Asian countries with shared values should have,” he said. Modi said that decisions made reflect how seriously the two countries take the new framework of the relationship. Noting that India considers South Korea a “crucial partner” in its economic modernisation, Modi said South Korea can be a leading partner in India’s efforts to develop a world class manufacturing sector. Our relationship started with a strong economic emphasis. But, it has also now become strategic in content,” Modi said.
Modi said South Korea is the second country (after Japan) with which India will have a diplomatic and security dialogue in 2+2 format, referring to a bilateral dialogue process involving the foreign and defence ministers of the two sides.
Stating that the national security councils of the two sides will have regular cooperation, Modi said the two nations have agreed to expand cooperation between their armed forces. “We intend to deepen our cooperation in defence technology and manufacture of defence equipment in India. This sector offers huge opportunities in India,” he said.
Modi said South Korean President’s response has been positive on the participation of Korean companies in the defence sector in India.
