South Korea pledges $10 billion for infra growth in India

SEOUL, March 18: South Korea on Monday pledged $10 billion for financing infrastructure projects, including smart cities and railways, in India. This came during a summit meeting Prime Minister Narendra Modi held with South Korean President Park Geun-hye. The Ministry of Strategy and Finance and the Export- Import Bank of Korea expressed their intention to provide $10 billion for mutual cooperation in infrastructure, said a joint statement issued after the meeting. The $10-billion pledge comprises "Economic Development Cooperation Fund ($ 1 billion) and export credits ($ 9 billion) for priority sectors, including smart cities, railways, power generation and transmission, and other sectors to be agreed", it added. The Modi-government has identified infrastructure as a key priority area to revive the economy. Modi's South Korea visit was aimed at getting Korean investment in sectors like ship-building, which is lagging due to non- availability of technology in India. The statement further said President Park welcomed India's 'Make in India' initiative as it provides new avenues to enrich and add substance to bilateral relations. Modi invited South Korea to become a privileged partner in 'Make in India' "to which President Park conveyed her appreciation," the statement said. The leaders called upon the business community from India and Korea to leverage the enormous synergies between their economies for mutual prosperity. The statement further said the leaders welcomed the interest of companies of the two countries in cooperation in the area of shipbuilding, including the construction of Indian vessels such as LNG carriers. The Indian government, it said, expressed its hope to discuss partnership with Korea with an aim to modernise the Indian shipbuilding industry. "The governments of both countries decided to provide support for facilitating private sector discussion on ways to cooperate in this area," it said. A Joint Working Group that includes the government and private sectors of the two countries will be established to facilitate cooperation in the shipbuilding sector.