First published in The Hindu Business Line, July 25th
Sandwiched between China and Japan, Korea somehow has escaped the sweep of Indian businesses seeking to expand in East Asia. The ‘Look East’ policy seems to somehow overlook the most stable economy in the region.
In the last fiscal, Indian direct investment in Korea, as tracked by the Reserve Bank of India, amounted to only $3.51 million. In comparison, investments in China were pegged at $66.68 million and in Japan at $19.21 million.
In other words, the data on Indian ODI show that investments in Korea were just 3.93 per cent of the total investments in the Big-3 East Asian economies, even three years after the signing of the India-Korea Comprehensive Economic Partnership Agreement (CEPA), a de facto free trade agreement.
It was widely...