At the start of a two-day state visit to South Korea on 18 May, Indian Prime Minister Narendra Modi called on the South East Asian nation to be a “leading partner” in his country’s economic modernisation programme, adding that “Korean companies have the edge to succeed in India”.

Following talks with South Korea’s President, Park Geun-Hye, Mr Modi told a press conference the two leaders agreed that their bilateral trade is “falling far short of its potential”.

He said that his visit to South Korea came at “a time of renewed momentum” in the Indian economy. “We have a special focus on infrastructure and developing a world-class manufacturing sector. Korea can be a leading partner in this enterprise.”

His visit — part of a six-day Asian tour — saw him meet the leaders of South Korea’s largest conglomerates, including Hyundai, Samsung and LG.

All three have plants in India, mainly manufacturing cars, smart-phones and home appliances. Hyundai Motor Co — South Korea’s largest car maker — operates two plants in the southern city
of Chennai and is looking to expand, while Samsung is expected to build a third plant in India.

South Korea’s Finance Ministry and the Export-Import Bank of Korea said they will provide $10 billion in loans and funding for infrastructure projects in India, including railways and power generation.

Mr Modi concluded:“We have laid the foundation for a relationship that two major Asian countries with shared values should have.”