SPEECH BY HER EXCELLENCY THE PRESIDENT OF INDIA, SHRIMATI PRATIBHA DEVISINGH PATIL AT THE BUSINESS INTERACTION BY KOREAN BUSINESS CHAMBERS

Seoul, 26th July 2011

Ladies and Gentlemen,

I am very pleased to be with representatives of Korean and Indian industry here in Seoul today. I am aware that the Strategic Partnership between India and the Republic of Korea, has been driven to a large extent by the efforts of all of you gathered here.

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. I want to congratulate you for that.

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 rapid growth of the Indian economy over the past few years, and the fact that we have been able to weather the storm of the global financial crisis reasonably well, is creating a huge market in India. 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.

India attaches great importance to improving its infrastructure, for which about 1 trillion US Dollars will be required in the coming years. This provides a great investment opportunity for foreign companies, including those from Korea. In expanding and modernizing 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.

Ladies and Gentlemen,

The objective of my State Visit to your beautiful country is to accelerate our bilateral relations. The Comprehensive Economic Partnership Agreement (CEPA) implemented by us since January 2010 has yielded good results. Our bilateral trade rose by 40 percent last year, and by current projections is slated to reach 21 billion US Dollars 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. Expert level discussions will commence from late-September this year.

Several representatives of the Indian industry have travelled to Seoul to be present here, during my visit and are participating in today's function. I urge them to fully utilize CEPA to expand exports to the Republic of Korea. Our IT companies are some of 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.

I am very happy to see that Indian companies are willingly participating in the further growth and development of the Korean economy. There have been substantial investments by the 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.

An India-Korea Agreement for Cooperation in the Peaceful Uses of Nuclear Energy was also signed yesterday. The Indian civil nuclear energy market is now open for Korean companies providing a new sector for our bilateral economic cooperation.

In my discussions with President Lee, I informed him of India's capabilities in the peaceful uses of outer space, and urged greater cooperation between our countries in this sphere. We look forward to the day when Korean satellites can once again be launched by Indian rockets. The Governments of India and RoK have also established a Joint Science and Technology Fund amounting to 10 million US Dollars for joint research between our scientists, in areas such as Information Technology, Biotechnology, energy-efficient technologies and nanotechnology. I am confident that their joint efforts will result in new products for both Korean and Indian industry.

Ladies and Gentlemen,

We need more direct flights between our countries. This is an aspect that we need to look at in all seriousness, if we are to expand trade and enhance people-to-people exchanges. Indian carriers have been requesting Korea for 5th Freedom Rights to enable them to fly to points beyond Incheon. President Lee and I have agreed, that our civil aviation authorities will meet soon to discuss this possibility.

I am happy that an Indian Chamber of Commerce in Korea was launched last year, which brings companies from both our countries together. I believe there is much that we can learn from each other and do together.

Ladies and Gentlemen, as you can see, there is tremendous potential to expand the India-RoK bilateral partnership. I urge you to fully utilize the opportunity of meeting today, to impart further momentum to business relations between our two countries.

I thank you for your attention.