New Delhi, March 11: South Korean automobile parts and electronic components manufacturers are eager to set up their production units in Rajasthan’s upcoming special economic zone, a senior official said Monday.
“There is a lot of interest among South Korean companies, especially the automobile parts and electronic components manufacturers, to set up production units in Rajasthan,” Kyung Yool Kim, director general, South Korea Trade Promotion Agency (Kotra) told IANS here.
Kotra is the umbrella agency of the country’s ministry of commerce, industry and energy and is mandated to promote the interests of South Korean firms.
Kotra Monday singed a memorandum of understanding (MoU) with Rajasthan State Industrial Development and Investment Corporation for an exclusive industrial zone for South Korean industry in Ghilot near Neemrana, in close proximity to the national capital.
“The duties on imported parts and other components are high. Setting up production units in India and that too close by to the national capital is being seriously considered by South Korean companies,” Kyung said.
“Rajasthan government is providing us with land and cost benefits which is very attractive for South Korean companies to set up production units in the proposed industrial zone.”
RIICO, on its part, said that it is confident to repeat the success it has had with attracting Japanese investments in the manufacturing sector of the state.
“This MoU is for a period of two-years. We are confident of repeating our success here as we have done before with the Japanese investments for their exclusive manufacturing zone at Neemrana which was established in 2008,” Sunil Arora, additional chief secretary, industries and chairman, RIICO said on the sidelines of the event.
Currently, 40 Japanese companies are at various stages of starting their production units at the Neemrana zone, which is spread over more than 1,000 acres.
Though at an initial stage, both sides have expressed confidence of growing the trade and investments through such collaborations.
South Korean Ambassador to India Joon-gyu Lee, who was also present at the MoU signing, said that there was alot of potential in increasing bilateral trade and investment.
The bilateral trade between both the countries last year stood at $19 billion, while South Korean investments into India were at $3 billion and Indian investments to South Korea stood at $1 billion.
South Korean companies, like Samsung, LG and Hyundai are major industrial players in India.