New Delhi [India], April 21 : India and South Korea on Monday highlighted how the two countries hold an economic and energy resource partnership as a central pillar of the Special Strategic Partnership during the visit of President Lee Jae Myung to India.
The Ministry of External Affairs on Monday shared the joint statement issued on energy resource security.
Highlighting how India and the Republic of Korea are Special Strategic Partners with a common vision for an open, inclusive and prosperous Indo-Pacific region, the statement noted that the central pillar of the Special Strategic Partnership is a long and trusted economic and energy resource partnership, grounded in a shared commitment to open markets and rules-based trade, which underpins our prosperity and economic security. Reaffirming these shared principles and understanding the impact of current situation on industries and markets is essential at this time.
"We endeavour to advance our energy resource trade and investment cooperation through the India-ROK Comprehensive Economic Partnership Agreement (CEPA) and relevant bilateral frameworks. India is a key supplier to the ROK of naphtha and other petroleum feedstocks, while the ROK is a leading supplier to India of petroleum products and lubricant base oils", the statement said.
It further noted that the two countries are committed to working together to strengthen energy resource supply chain resilience, including through deepening regional cooperation, accelerating energy transition and supporting open trade arrangements for energy resources. "We recognized the need to explore closer collaboration as major LNG consumer to enhance market stability, transparency, and better reflect buyers' perspectives", it said.
The statement highlighted that recognizing the shared commitment to resilient trade in energy, India and South Korea also recognize that resilient maritime infrastructure, including shipbuilding, is critical to ensuring the energy security of both countries. We acknowledge the importance of a robust and diversified shipbuilding ecosystem, in supporting the safe, reliable and efficient transportation of energy resources.
Against this backdrop, the statement said that India and South Korea endeavor to maintain a stable, secure and reliable supply of energy resources to each other, including efforts by both countries to maintain open trade in naphtha and other petroleum products; and cooperation in entire energy value chain; explore closer collaboration among LNG-consuming countries; strengthen cooperation in the shipbuilding sector, including though not limited to, setting up shipyards in India, shipyard modernization, human resource development, and technology partnership.
"India and the ROK call on regional partners to join in ensuring global energy resource supply chains are kept open, for the benefit of the security and prosperity of our peoples", the statement added.
During the meeting between Prime Minister Narendra Modi of India and President Lee, the two sides had productive and in-depth exchange of views on mutually beneficial cooperation between their government agencies and private entities for partnership in shipbuilding, shipping and maritime logistics.
In a statement on the Comprehensive Framework for Partnership in Shipbuilding, Shipping and Maritime Logistics, the Ministry of External Affairs highlighted that both sides agreed that India's maritime ambitions under Maritime Amrit Kaal 2047 Vision have created considerable opportunities for long-term collaboration with the ROK, a friendly nation with leading shipbuilding and maritime capabilities. Cooperation in shipbuilding, port development and maritime logistics could channelize the India-ROK Special Strategic Partnership towards practical benefits and economic value for both nations, while forging deeper understanding and partnership among their peoples.
The statement said that the Indian side briefed the South Korean side about opportunities to set up large-scale greenfield shipbuilding clusters in the country and the incentives available under the Government of India's Shipbuilding Development Scheme as well as incentives provided by relevant state governments and Indian financial Institutions for the same. The Indian side invited leading shipbuilders from the ROK as technical and strategic anchors for these clusters through active involvement in design, production engineering, advanced manufacturing, quality and safety frameworks and operation. The South Korean side expressed expectation for the advancement of cooperation based on the participation of the business sector.
To this end, both sides took positive note of the collaborations between Korean Industries and India, such as the conclusion of a non-binding MOU among the Korean shipbuilder HD Korea Shipbuilding & Offshore Engineering Co., Ltd. (HD KSOE), the identified cluster developer and facilitator, and the capital provider Maritime Development Fund (MDF) for joint development, financing, implementation, operation of a large greenfield shipyard in southern India. They hoped for early implementation of the project, the statement noted.
The statement underlined how India and South Korea are both nations with rich maritime traditions and share extensive common interests and complementary strengths in the domain of maritime industries. With India's rapid economic growth and internationalization of its economy, the maritime sector is extremely critical to India's security and prosperity.