Korean, Indian MSME associations sign pact to boost Korean investment in India

NEW DELHI: The foundation stone for the smooth entry, survival and success of Korean companies in the Small and Medium Enterprises (SMEs) sector in India was laid here on Tuesday when the Korean Small & Medium Enterprises Association (KOSMA) in India inked a mutual “help each other” agreement with India’s national MSME body – the Federation of Indian Micro and Small & Medium Enterprises (FISME).

Both the sides signed Memorandum of Understanding (MoU) with the intent of assisting each other in boosting investment and facilitating smooth entry and functioning of Korean SMEs into India.

Y K Lee, the KOSMA chairman signed the MoU for the Korean side, while Animesh Saxena, the president of FISME that represents over 400 small, medium and micro enterprise associations in India, signed for the Indian side during the seminar titled “How to Come to India, Survival & Sustainability of SME Sector in Indian Market”.

Present on the occasion were Shin Bong-kil, the Ambassador of Republic of Korea In India; Hee-chul Jung, Chief Representative (Director) Korea International Trade Association (KITA); Moon Young Kim, President, Korea Trade-Investment Promotion Agency (KOTRA), Southwest Asia; Tae Hwan Lim, Vice Chairman, World Federation of Overseas Korean Traders Association; Anil Bhardwaj, Secretary-General, FISME; and over hundred representatives of Korean and Indian companies in Gurugram.

While thanking the government of India for its efforts for creating an ideal business environment, the KOSMA chairman Y K Lee said, “Although Korean small and medium enterprises feel it is not easy to enter India and Koreans SMEs are facing many challenges and difficulties, the number of Korean companies are growing gradually. KOSMA and FISME we will do many interactions for creating business equations, exchange information and know-how, find solutions, help each other’s SMEs, promote each other. FISME will help Korean SMEs enter the Indian market, and survive and settle down as well as meet good partners, create business opportunities and it will be a win-win situation for each other.”

Animesh Saxena, the president of FISME admitted that the SME entrepreneurs happened to face challenges and difficulties around the world such as difficulty in access to finance, training, and retraining of the workforce, compliances with the regulatory environment, and coping up with the everchanging global environment.

“But some of these challenges are country-specific also. India as a large developing economy with a legacy of colonial laws and systems carries a burden from the past which it is trying hard to shed,” he said.

Saxena, however, assured the Korean investors that the situation in India was improving on the ease of doing the business front.

Also read: FISME to play key role in facilitating Korean MSMEs in India; may soon sign MoU with KOSMA

“On the World Bank (WB) ease of doing business index, India climbed from 142^nd rank in 2014 to 72^nd in 2018. This does not capture two of India’s most transformative reforms – GST and introduction of new Insolvency & Bankruptcy Code. India’s ranking will further improve this year. However, we have to benchmark with the best and continuously improve the business environment,” the FISME chief added.

He informed that the additional secretary in the Indian Ministry of MSME and development commissioner Ram Mohan Mishra was also keen to attend the event and listen to the issues but he had to cancel his plan following an unavoidable situation in New Delhi.

While praising the efforts put in by KOSAM for bringing Korean investment in the SME sector of India ever since its inception last year Shin Bong-kil, the Ambassador of the Republic of Korea In India said that the Korean investment in India growing each year.

Also read: Korea asks its business community to see emerging opportunities in India aggressively; MSMEs & start-ups to hold the key for future growth