Prime MinisterNarendra Modi's government has imposed taxes on imports of key smartphone components as part of a plan to encourage electronics manufacturing in India which would boost growth and create millions of new jobs. A financing arrangement of $10 billion had been set by South Korea for infrastructure development in India, following the visit.
Swaraj and President Moon shook hands with other officials and then held talks. Union Minister Prabhu says, "Trade and commerce will play their own roles in taking bilateral relations between both the countries forward".
"We expect the visit to open new partnership particularly in economic domain".
"This is a significant departure from Korea's traditional foreign policy", the article noted, adding that, "It is partly a hedging strategy amid the US-China tug-of-war in the region, and partly a forward-looking move to address how Korea and India can together meet the demands of a dynamic future".
The total number of Indian nationals living in South Korea is estimated to be around 11,000. More than 120 local factories now assemble mobile phones and accessories like chargers, batteries, powerbanks and earphones in India, according to tech research firm Counterpoint. But the South Korea firm pulled out of the project last year, after waiting for 12 years for clearances and being caught up in public resistance to the project. The Korean giant wants the unit production to go as high as 120 million in three years and for that it is hiring 5,000 new employees.
Samsung has two manufacturing plants - in Noida and in Sriperumbudur, Tamil Nadu - five R&D centres, and one design centre in Noida, employing over 70,000 people and expanding its network to over 1.5 lakh retail outlets.