April 26, 2024

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[THE INVESTOR] Indian Finance Minister Arun Jaitley on June 15 urged more Korean companies to consider investing in India, noting that Korea makes up the largest portion of foreign direct investment flowing into the country.

“India has almost 17 percent of global population. I think it has a very large potential for most of you. I’m sure all of you will certainly have a close look at India as an investment destination,” Jaitley said at a Korea-India investment conference hosted by the Indian Chamber of Commerce in Korea.

 

Indian Finance Minister Arun Jaitley

The finance minister is visiting Korea to participate in the second Asian Infrastructure Investment Bank annual meeting on June 16-18.

Jaitley also noted how India was making the necessary policy decisions to house more investment from abroad, particularly from Korea -- more than 400 Korean firms are currently investing in India.

In October 2016, Indian Prime Minister Narendra Modi facilitated a policy change to decrease India’s corporate tax to 25 percent from 30 percent. The government will also unify the goods and service tax system from July 1, which is currently imposed differently across states.

In return, India is looking for strong partners to help upgrade its national infrastructure, such as roads and railways. Currently, around 250 highways are being built in India, while a minimum 400 train stations are being renovated. India is hoping to attract more Korean firms to help make these changes possible, according to Jaitley.

Regarding questions about the movement of the Indian currency, Jaitley said it is fluctuating within appropriate levels, and there are no concerns.

In May, Indian Commerce Minister Nirmala Sitharaman said in an interview that she does not see the rupee to be too strong, and the government won’t be intervening since India is not dependent only on exports for economic growth.

By Song Seung-hyun (ssh@heraldcorp.com)