India invites foreign investments in infrastructure

Inviting investments from South Korea and other countries into the infrastructure sector, President Pratibha Patil today said nearly USD 1 trillion will be spent in the coming years to improve India's roads, ports, railways and other core sectors.

"India attaches great importance to improving its infrastructure, for which about USD 1 trillion will be required in the coming years."

"This provides a great investment opportunity for foreign companies, including those from Korea," Patil, who is on a three-day visit to South Korea said.

"In expanding and modernising our roads, highways, airports, sea ports and railways, we will require investment from foreign entities and firms.

"We look forward to greater participation in this endeavour by Korean companies," she said inaugurating a business interaction organised by Korea Chambers of Commerce.

"To us, in India, the Korean economic miracle is inspiring. It was the hard work of the people of this country, coupled with the successful business model that was adopted, which has created the incredible economic success that the Republic of Korea today represents.

"In India too, you spotted the economic opportunities long before others, and this first-mover advantage has enabled Korean companies to reap great profits in our country.

"Hyundai, Samsung  and LG  are household names in India today," the President said.

Patil said that both India and Korea are exploring the possibility of upgrading the Comprehensive Economic Partnership Agreement (CEPA), implemented since January 2010, to boost trade between them.

A high-level discussion in this regard is to begin in late September.

"Korean companies have adjusted extremely well to conditions in India. You are also making India the manufacturing hub for exports to third countries in South Asia, the Middle East and even Eastern Europe.

"Our bilateral trade rose by 40 percent last year, and by current projections is slated to reach USD 21 billion during the current calendar year, and would comfortably reach the level of 30 billion US Dollars by 2014, the target we have set for ourselves.

"President Lee and I discussed the possibility of further upgrading our CEPA," the President said adding that "expert level discussions will commence from late-September this year."

The Indian President asked the North-East nation to further facilitate exchange of expertise between the two countries in industry and service sectors.

"Our IT companies are among the best in the world, and will be able to help Korean businesses in reducing costs and enhancing competitiveness.

"Similarly, Indian pharmaceuticals are of high quality coupled with low prices, and will be beneficial to Korean consumers," Patil said.

The function was attended by members of Korean Chambers of Commerce and a delegation of about 30-members led by Deep Kapuria, Chairman, CII, National Committee on Automatation and Robotics.

Patil urged the representatives of companies attending the function "to fully utilise CEPA to expand exports to the  Republic of Korea" while pointing out that Indian companies were willingly to participate in further growth and development of the Korean economy.

"There have been substantial investments by the TATA Group, the Mahindra Group and Hindalco Industries here in Korea.

"These are all blue chip firms from India, and I can assure you, that they will make positive contributions in the further growth of your country," Patil said.

The president said the Indian civil nuclear energy market is now open for Korean companies, providing new opportunities for boosting bilateral economic cooperation.     

Indian and Korea had yesterday signed an agreement for Cooperation in Nuclear Energy.

"In my discussions with President Lee (Myung-bak), I informed him of India