Guess which country’s the single largest foreign investor in India?
It’s not any of the usual suspects — the US, the UK or even Japan .
(Via reader Rasul Sharif)Newsweek reports
In one whopping megadeal, South Korea has become the largest foreign investor in Asia’s second emerging giant, India. On Aug. 31, Korean steelmaker Posco established a local subsidiary in the eastern Indian state of Orissa, paving the way for a controversial mill and mining complex that will cost the world’s fifth largest steelmaker $12 billion and employ some 40,000 workers once it’s fully operational in 2010.
By the numbers, Korea now tops the list of countries investing in India since New Delhi launched economic reforms back in 1991—at more than $14 billion. South Korean firms like Hyundai, LG and SK Group have carved out a notable presence in the country—the world’s second largest and a potentially huge market for products like refrigerators, washing machines and television sets.
In just a few years, South Korean brand appeal has eclipsed Japanese rivals like Sony and Honda, and even the nation’s biggest cricket stars have become known as Team Samsung, thanks to a successful sponsorship campaign. (In a cricket-crazy country like India, that’s a big coup — PK)
Importantly, Korean companies have helped India gain self-confidence as a manufacturing nation and an exporter with the potential to rival China in certain industrial sectors.