The purpose of this study is to consider the impact of India's reforms since 1991 on the performance of the Indian economy. It shows that the reforms definitely achieved a significant acceleration in growth and they also succeeded in reducing poverty. Prime Minister Modi's party, which marks its sixth year in office, won the local council election in March 2018, which is expected to give further momentum to the government's economic policies. We would like to examine the changes in economic policy in the five years since the launch of the Modi administration, examine the business environment felt by Korean companies under the Modi administration, and examine the direction of the Modi administration's economic policies. This is to identify the business environment through a survey of Korean companies and to deliver business-related information to those who wish to enter the country. We will also take a closer look at the Korea-India CEPA agreement and see what Korean companies want to improve CEPA. The purpose of this research is to identify promising industrial corridors for our enterprise entry in relation to the five major industrial corridors of India, and to establish sustainable export strategies in the long term. Therefore, this study focused on three main points on how the signing of CEPA in accordance with the economic cooperation between Korea and India affects Korean companies. In order for Korea to gain the upper hand in the Indian market, it must continue to seek work from a long-term perspective. Basically, it is essential to roach from a long-term perspective and build trust with India. In the case of Japan, it took three to five years for small and medium-sized companies to make inroads into ASEAN until they achieved a surplus after entering the local market, while it took five to 10 years after entering the Indian market.
Therefore, Korea also needs to discuss this from a long-term perspective, not from a short-term perspective. Also, what the Indian government is demanding is that it is not simply selling products. It is important to implement it faithfully because it requires direct production and sales through local investment, technology transfer, and local A/S. On the other hand, one can see how they can advance. So far, it has been understood that Korean branches have made a lot of solo inroads into the market. However, various measures are needed to reduce risk, i.e. joint ventures with local companies and M&As or with local Indian companies will also need to be considered. In the case of global advanced countries, more than 1,600 collaborations were made between German and Indian companies, with more than 600 joint ventures. This is necessary for long-term confidence building, and it is also necessary to consider corporate social responsibility (CSR) activities that will help Indian society.
Korean companies are operating with a variety of global value chains. If new companies seek to advance a road, they will not have to push ahead simply with India. It is necessary to determine investment through comparison with other emerging countries. To this end, it is necessary to carry out comparative analysis research with countries subject to comparison, such as Southeast Asia, and to database and accumulate them, which could ease the burden on companies if implemented through trade-related agencies. The results of this study are intended to explore the localization strategies of Korean companies for entering India and desirable ways to make inroads in terms of sustainability, and provide policy implications.