Press Trust of India

India, South Korea sign MOU for science and technology

Seoul, February 7, 2006

India and South Korea have signed a Memorandum of Understanding (MoU) for cooperation in science and technology.

President APJ Abdul Kalam also hinted that a bilateral Free Trade Agreement (FTA) could be considered within the ambit of the Comprehensive Economic Partnership Agreement (CEPA).

The MoU, signed on Tuesday between India's Department of Science and Technology and Korea Industrial Technology Foundation, includes sharing of work for promoting technology innovation and industrial cooperation between the two countries.

It also provides for exchange of human resources, technological information, research trends and commercialisation opportunities of mutual interest.

Technology transfer, co-hosting of investment fairs and seminars and providing industrial technology-related education to work force development in universities of India and South Korea are also envisaged.

Addressing the captains of South Korean industries and businesses, Kalam said in response to a question, "I will examine if the FTA (between India and South Korea) could be considered within the ambit of the CEPA."

The President is on a three-day visit to South Korea, the first by an Indian head of state to the country.

Inviting Korean companies to go for more investment in   India, Kalam said the Indian economy has "changed  significantly since the early 1990s with macro-economic  stabilisation and pursuit of a reform programme aimed at  enhancing competitiveness, efficiency and productivity."

The trade has been made "virtually free," industrial and  import licensing dismantled and foreign direct investment  liberalised while reforms were undertaken in public sector,   infrastructure and financial sector with investor-friendly  policies, he pointed out.

He said Indian industries too would be setting up  ventures in South Korea after the Tata Group acquired the  Daewoo's commercial vehicle manufacturing facility in this country.
 

Making a strong case for greater Indo-South Korean  cooperation, Kalam said India's cost-effective human resources  would complement rising wages and labour scarcity in South  Korea. 

India's strategic location as an essential link between  different sub-regions of Asia could be used by South Korean  business and industry for relocation, Kalam said.

The President also suggested that India and South Korea   jointly make highly advanced knowledge products with a high   market share in a competitive global trade.
 

He said the competencies of India and South Korea in  pharmaceuticals and research in biotechnology and nano  technology would ensure new healthcare devices and medicines  using rich bio-diversity of the two countries.

"It is forecast that India and South Korea will become  economically strong nations and join the list of ten top developed countries," the President pointed out.

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