India should be used as a beachhead for Korea in an effort to provide a deeper penetration for its goods going into Europe, Africa and the Middle East, a private research center argued Sunday.
In a report following the establishment of the comprehensive economic partnership agreement or CEPA between Korea and India, Samsung Economic Research Institute (SERI) said that, in order to make the best of the bilateral trade pact, Korea should increase direct investments in India.
India is suffering from a huge trade deficit so it is in dire need of an export-oriented manufacturing base,'' the SERI report said. ``This gives a win-win situation for both Korea and India, if Korea makes direct investments aimed at using India's cheap but excellent manpower.''
The CEPA is very similar to a free trade agreement, which will cut down tariffs and liberalize investment. India is emerging as a key market that can rival China due to its large population that is becoming increasingly affluent.
SERI claim that the CEPA is expected to bring more transparency to bilateral trade relations and provide better opportunities for mutual investment ``for Korea to go one step ahead of China and Japan and secure its exporting beachhead.''
The institute said that the CEPA is a precious experience for Korea in terms of gaining a free trade pact with other countries, considering the complicated structure in India that blocks other countries from doing so.
It is unfortunate that the two countries' agreement doesn't adequately address the financial sector,'' the SERI report said but added that it still constitutes a valuable chapter for Korea in its ongoing effort to expand bilateral trade pacts with other countries.
Source : Koreatimes