South Korean consumer electronics giant lG is looking at making India its export hub, banking on good ties between the two countries at a time when its overseas shipments from China are declining. According to lG Electronics India Managing Director Ki Wan Kim, one of the main reasons for the company to look at making India an export hub is due to tension prevailing between South Korea and China.
lG, which has two manufacturing units in India, exports to the Middle East and countries in the eastern coast of African continent. Around 10 per cent of sales of the company's Indian arm -- lG Electronics India (lGEI), are currently from exports. last year, lGEI had sales of Rs 22,000 crore. “On the other hand ties between South Korea and India have improved. All Korean (companies) have started to see India as a strategically important manufacturing base not only for India but for other areas,” Wan told PTI. When asked if lG is scouting for more global markets for exports from India, he replied in the affirmative saying it is looking forcountries where there is little or no manufacturing.
Earlier, lG used to serve such markets from China but ‘it is declining gradually’, Wan added. “Already we are exporting from Noida and Pune to Middle East mainly in Saudi and Iran and African countries on (the eastern coast of the continent),” he said.
Another major factor for seeing India as a major hub for exports is that the country is becoming more competitive economically and there will be secured and transparent taxation regime with the expected implementation of GST.