| Date: |
20-04-2011 |
| Subject: |
S. Korean Exports To India Surge, But Face Fierce Competition |
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South Korea's exports to India are growing at a rapid pace but the country must step up its efforts to further expand its trade relations with the world's fastest growing economy, a report said Wednesday.
South Korean exports to India jumped nearly 10 times from US$890 million in 2000 to $8.57 billion last year with the market share of its products in India's import market also rising to 3 percent from 1.8 percent, according to the report by the Korea International Trade Association.
The country, however, is still falling behind its largest competitor, China, whose exports to India jumped more than 20 times over the cited period from $1.5 billion to $30.8 billion, which account for 10.8 percent of India's import market, it said.
Japan, once the top seller in India's import market, saw its market share plunge from 3.6 percent to 2.3 percent as its exports to India grew from $1.84 billion in 2000 to only $6.73 billion.
"China greatly boosted its market share (in India) by quickly switching from material-based exports to product-based exports," the report said. "Japan's exports are smaller than those of South Korea, but the country outruns South Korea in terms of foreign direct investment and competitiveness of more profitable products."
The report said competition between South Korea, China and Japan in India will continue to intensify as Japan and India formally signed a bilateral free trade agreement earlier this year.
South Korea and India implemented their free trade deal, known as a comprehensive economic partnership agreement, at the beginning of last year.
"Competition between South Korea, China and Japan in India is fierce, but our companies must continue to seek opportunities in India as the size of the market is growing and will continue to grow at such a rapid pace," the report said.
In 2010, India was South Korea's seventh-largest importer, and South Korea the 10th-largest destination of Indian products.
Source : english.yonhapnews.co.kr
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