Hyundai to win greater access to India
Monday, 10 August 2009
SEOUL, Aug. 9 (Bloomberg): Hyundai Motor Co, LG Electronics Inc. and other South Korean companies will get greater access to India's 1.2 billion people in a trade deal to be signed tomorrow.
Import duties on 85 per cent of Korean goods, including auto parts and electronics, will be cut or phased out over the next decade, Korea's Trade Ministry said today. Indian Commerce Minister Anand Sharma and his Korean counterpart Kim Jong Hoon will sign the agreement in Seoul, said Choi Kyong Lim, the official overseeing trade agreements, said today in Seoul.
India's $1.2 trillion economy grew 5.8 per cent in the three months to March 31, brushing off the global slowdown that has dragged Korea into recession. Singapore's exports to India excluding oil products more than doubled in the two years after they signed a similar accord in 2005, turning the city state's deficit to a surplus, according to Indian Commerce Ministry data.
"South Korea is looking to expand its presence in India with its vibrant economy and 1.2 billion population," said Myong Jin Ho, a researcher at the Institute for International Trade in Seoul.
Bilateral trade between India and South Korea rose 39 per cent last year to $15.6 billion. South Korea exported $3.6 billion of goods to India, and imported $1.6 billion in the first six months of this year.
India's growth puts more money into the hands of consumers in a country where almost 30 per cent of the population is under 15 years of age. Younger people tend to spend more on vehicles, phones and other consumer goods.
India will eliminate or reduce tariffs on 85 per cent of South Korean exports over 10 years, Korea's Trade Ministry said. These will include auto parts, tankers, electronic goods, machinery parts and synthetic rubber.
South Korea's cuts will cover about 90 per cent of Indian exports, including polycarbonates, leather, industrial diamonds, gasoline and corn for livestock.
Import duties on 85 per cent of Korean goods, including auto parts and electronics, will be cut or phased out over the next decade, Korea's Trade Ministry said today. Indian Commerce Minister Anand Sharma and his Korean counterpart Kim Jong Hoon will sign the agreement in Seoul, said Choi Kyong Lim, the official overseeing trade agreements, said today in Seoul.
India's $1.2 trillion economy grew 5.8 per cent in the three months to March 31, brushing off the global slowdown that has dragged Korea into recession. Singapore's exports to India excluding oil products more than doubled in the two years after they signed a similar accord in 2005, turning the city state's deficit to a surplus, according to Indian Commerce Ministry data.
"South Korea is looking to expand its presence in India with its vibrant economy and 1.2 billion population," said Myong Jin Ho, a researcher at the Institute for International Trade in Seoul.
Bilateral trade between India and South Korea rose 39 per cent last year to $15.6 billion. South Korea exported $3.6 billion of goods to India, and imported $1.6 billion in the first six months of this year.
India's growth puts more money into the hands of consumers in a country where almost 30 per cent of the population is under 15 years of age. Younger people tend to spend more on vehicles, phones and other consumer goods.
India will eliminate or reduce tariffs on 85 per cent of South Korean exports over 10 years, Korea's Trade Ministry said. These will include auto parts, tankers, electronic goods, machinery parts and synthetic rubber.
South Korea's cuts will cover about 90 per cent of Indian exports, including polycarbonates, leather, industrial diamonds, gasoline and corn for livestock.