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Korean Foreign Direct Investment in India : Hyundai Motors’ Industrial Cluster

Korean Foreign Direct Investment in India : Hyundai Motors’ Industrial Cluster. Jongsoo Park Professor of Economics, Gyeongsang National University. Contents. Trends and performance of the FDI Determinants of FDI Drives and deterrents of FDI in India

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Korean Foreign Direct Investment in India : Hyundai Motors’ Industrial Cluster

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  1. Korean Foreign Direct Investmentin India : Hyundai Motors’ Industrial Cluster Jongsoo Park Professor of Economics, Gyeongsang National University

  2. Contents • Trends and performance of the FDI • Determinants of FDI • Drives and deterrents of FDI in India • FDI with Industrial Cluster • Korean FDI : HMI case

  3. Korean FDI in India

  4. FDI with Industrial Clusters : Spillovers of FDI & industrial clusters • What is cluster? • “geographic concentrations of interconnected companies and institutions in a particular business field” (Porter,1990). • FDI with industrial clusters should transfer technology more effectively than dispersed one .  • Korean FDI in India : HMI case  

  5. HMI's Industrial Clusters

  6. Important factors of success of HMI • Greenfield investment & • launch together with established Korean subcontractors strategy

  7. Summary and Conclusion What should guide India's FDI policy? • Promote the FDI in industries and products • with high technology, economies of scale, • substantial domestic content. • The existence of functioning industrial clusters is • an indication of the sophistication & • competitiveness of a business environment.

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