The Giant LG electronics is looking forward to expand its export hub in India, as there is a great string attached between the two countries.
Managing Director, Ki Wan for LG Electronics stated that – “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 its two manufacturing units in India (Noida and Pune) which will be now exported to middle east and eastern coast of the 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.
Wan also stated that “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.”
Adding on he said that “India is becoming more competitive economically. With GST comes up, its secured and transparent taxation regime along with a stable political system would help with the project as a bigger manufacturing hub.”
Also one great thing to take into consideration is that there is great competition from India economically and there will be transparency and security for taxation reign with the execution of GST.