Since 2004, all over the world has been focusing on continuous high economic growth and rising international status of India. Along with international trend, Korea is also keeping up studies on India and its changes. But as most of studies are tried to cover the whole India, there has been limitations to understand Indian regional market more practically and specifically. Actually, India has too various languages, religions, and tribes to consider as one country. In order to provide more practical information for Korean companies and government that are interested in Indian market, it is necessary to collect and analyze region-wise and state-wise information.
The purpose of this study is to provide assessments on investment environments as well as basic information of Indian regional market. For the first step, we divided India into four parts; East, West, South, and North. And then, advanced market research for major states and basic market research for minor states was conducted according to four parts.
The study is comprised of Basic Investment Environments, Manufacturing & Market Environments, and Political & Economical Openness for each state. And analysis on risk factors and assignments of four parts were conducted based on above market research, and assessments and implications of the study are provided on the last part of each report. For this study, first of all, we collected and classified region-wise and state-wise information. Second, field researches for manufacturing environments and market environments were conducted for major 13 states. Last, in order to understand political environments and risk factors, we gathered opinions from Indian experts and Korean companies in India through interviews and meetings.
This report is a study on Western Part which includes Gujarat, Maharashtra, and Goa. States on the Western Part are major driving force of Indian Economy. Especially Gujarat and Maharashtra are major industrialized states in India and take half of Indian manufacturing industry.
In terms of economy scales, Maharashtra is the largest economy in India with 13.3% of Indian GDP. The FDI inflows into Maharashtra is about USD 14 billion from 1999 to 2007 and it is almost 20% of whole FDI inflows in India. Gujarat is newly industrializing state and very active to attract foreign investment.
In terms of manufacturing environments, Maharashtra and Gujarat are developing the largest number of industrial parks in India. Most of industrial parks in this region are equipped with the best level infrastructures in India and have good accessibility to other regions. As those industrial parks play important role in state export and economy, other states also started to develop industrial parks.
In terms of market environments, income and consumption level of people in western India are higher than other region. Per capita income of Goa is the highest level in India, and it is almost 3 times higher than Indian average.
However, there are also some risk factors in Maharashtra and Gujarat. For Maharashtra, lack of industrial sites near Mumbai and slow treatment of legal claim could be a problem. And For Gujarat, companies should keep in mind religious conflicts and labor disputes in the state.

Since 2004, all over the world has been focusing on continuous high economic growth and rising international status of India. Along with international trend, Korea is also keeping up studies regarding India and its changes. But as most of studies are tried to cover the whole India, there has been limitations to understand Indian regional market more practically and specifically. Actually, India has too various languages, religions, and tribes to consider as one country. In order to provide more practical information for Korean companies and government that are interested in Indian market, it is necessary to collect and analyze region-wise and state-wise information.
The purpose of this study is to provide assessments on investment environments as well as basic information of Indian regional market. For the first step, we divided India into four parts East, West, South, and North. And then, advanced market research for major states and basic market research for minor states was conducted according to four parts.
The study is comprised of Basic Investment Environments, Manufacturing & Market Environments, and Political & Economical Openness for each state. And analysis on risk factors and assignments of four parts were conducted based on above market research, and assessments and implications of the study are provided on the last part of each report. For this study, first of all, we collected and classified region-wise and state-wise information. Second, field researches for manufacturing environments and market environments were conducted for major 13 states. Last, in order to understand political environments and risk factors, we gathered opinions from Indian experts and Korean companies in India through interviews and meetings.
This report is a study on Northern Part which includes Haryana, Uttar Pradesh, Rajasthan, Punjab, Uttarakhand, Jammu & Kashmir, Himachal Pradesh, and Madhya Pradesh. And NCR (National Capital Region) is also included in this region. This region is known to us with the richest state in India; Punjab and increasing numbers of industrial parks in Rajasthan.
In economic size, Uttar Pradesh has the largest economy among 8 northern states with 8% share of Indian GDP. And following Haryana and Rajasthan, the economic size of Madhya Pradesh was relatively larger than other northern states with 3.1% share of Indian GDP. In economic growth, Haryana showed the highest economic growth rate, 8.6%, in this region during last 5 years (2004~2008).
In terms of manufacturing environments, it is difficult to get industrial site near NCR because of lack of empty space and high land price. However, a lot of industrial parks are developing along with NH-8 which connects Delhi to Rajasthan. As the development of DMIC (Delhi-Mumbai Industrial Corridor), this area would play important role in future industrial and economic development in India.
Northern states are regarded as favorable investment market with good infrastructure, positive attitude of state government to foreign investment, abundant of high-skilled labor, and low tax rate.

Since 2004, all over the world has been focusing on continuous high economic growth and rising international status of India. Along with international trend, Korea is also keeping up studies regarding India and its changes. But as most of studies are tried to cover the whole India, there has been limitations to understand Indian regional market more practically and specifically. Actually, India has too various languages, religions, and tribes to consider as one country. In order to provide more practical information for Korean companies and government that are interested in Indian market, it is necessary to collect and analyze region-wise and state-wise information.
The purpose of this study is to provide assessments on investment environments as well as basic information of Indian regional market. For the first step, we divided India into four parts East, West, South, and North. And then, advanced market research for major states and basic market research for minor states was conducted according to four parts.
The study is comprised of Basic Investment Environments, Manufacturing & Market Environments, and Political & Economical Openness for each state. And analysis on risk factors and assignments of four parts were conducted based on above market research, and assessments and implications of the study are provided on the last part of each report. For this study, first of all, we collected and classified region-wise and state-wise information. Second, field researches for manufacturing environments and market environments were conducted for major 13 states. Last, in order to understand political environments and risk factors, we gathered opinions from Indian experts and Korean companies in India through interviews and meetings.
This report is a study on Eastern Part which includes West Bengal, Orissa, Chhattisgarh, Bihar, and Jharkhand. Eastern states are not very familiar with us, except Kolkata which had been the capital of India under the control of the British, and a project by POSCO in Orissa.
Eastern states are relatively behind in various aspects including economic development. West Bengal is the 4th largest economy in India which takes almost 11% of Indian GDP. But the state is backward stepping in terms of its economy, because of the political conflicts with local communist party in power. Besides West Bengal, other states have small economy and each of them take just 2~3% of Indian GDP. And the level of industrial development in this region is very low, and states have a few of industrial parks with poor infrastructure system. However, Chhattisgarh and Bihar is currently experiencing rapid economic growth with its abundant natural resources.
It is recommended to consider various risk factors to invest to eastern region, such as dangers form Naxalite, political conflicts, lack of infrastructure including industrial parks, and unfavorable attitude of state governments to foreign companies.

 Since 2004, all over the world has been focusing on continuous high economic growth and rising international status of India. Along with international trend, Korea is also keeping up studies regarding India and its changes. But as most of studies are tried to cover the whole India, there has been limitations to understand Indian regional market more practically and specifically. Actually, India has too various languages, religions, and tribes to consider as one country. In order to provide more practical information for Korean companies and government that are interested in Indian market, it is necessary to collect and analyze region-wise and state-wise information.
The purpose of this study is to provide assessments on investment environments as well as basic information of Indian regional market. For the first step, we divided India into four parts East, West, South, and North. And then, advanced market research for major states and basic market research for minor states was conducted according to four parts.
The study is comprised of Basic Investment Environments, Manufacturing & Market Environments, and Political & Economical Openness for each state. And analysis on risk factors and assignments of four parts were conducted based on above market research, and assessments and implications of the study are provided on the last part of each report. For this study, first of all, we collected and classified region-wise and state-wise information. Second, field researches for manufacturing environments and market environments were conducted for major 13 states. Last, in order to understand political environments and risk factors, we gathered opinions from Indian experts and Korean companies in India through interviews and meetings.
This report is a study on Southern Part which includes Tamil Nadu, Karnataka, Kerala, Andhra Pradesh. Southern states are relatively familiar with us, since it covers Chennai in Tamil Nadu and Bangalore in Karnataka which are famous investment regions of Korean companies. Especially, Tamil Nadu is the most attractive destination of Korean company and already a lot of Korean companies are operating in this region.
In economic terms, Karnataka and Tamil Nadu play leading role in southern Indian economy. Each of two states takes 8% of Indian GDP and have higher economic growth rate than Indian average. And the amounts of FDI inflow into both states are also similarly higher than Indian average. Kerala is little bit behind in economic development, but it has high potential with excellent human resource.
In terms of manufacturing environments, Tamil Nadu is the most industrialized state in the southern India and manufacturing industry of Tamil Nadu takes 9% of total output from whole Indian Manufacturing industry. In Karnataka, the tertiary industry with IT industry in Bangalore became one of the main pillars of Indian economy. Kerala government takes effort to differentiate the state with media and entertainment industry, furthermore developing video entertainment industrial complexes.
In market environments, southern states show relatively high consumption propensity than other region. Especially, the monthly per capita consumer expenditure of Kerala urban as well as rural people is the highest level in India.
Southern states have relatively favorable investment environments with abundant labor resource and evenly developed industries than other regions. And state governments are active to attract investments. However, risk factors to enter into southern Indian market still exist. Generally, southern India is politically unstable; especially Tamil Nadu shows regional political behavior and conflicts with central government. Andhra Pradesh has abundant natural resource, but it is the main activity area of Naxalite.

This paper analyses China’s aid policy and strategy, and studies its aid implementation in practice with focus on organizational structure, aid modality as well as the volume of its assistance. To better understand the characteristics of Chinese aid, this paper first reviews the evolution of China’s position as a donor and recipient over the past 60 years and then explores the ‘Beijing Consensus’ in comparison to the ‘Washington Consensus’ as a new development paradigm.
The growing trend is that emerging donors from the developing world have stronger influence in international aid architecture more than ever with its increasing volume of assistance and the unconventional way of aid delivery. China, as one of the world’s fastest growing economies, is exercising its soft power as a diplomatic tactic and economic tool to secure natural resources overseas and export markets in developing countries. The fundamental direction of Chinese aid policy is based on national value of mutual benefits, non-interference, no conditionality and self-help development that have been sustained since the 1960s. The current form of Chinese aid relying strongly on preferential loans combined with economic cooperation package originated in 1994 when the Chinese Exim bank was established.
It should be carefully examined that the perception towards Chinese aid is polarized among traditional donor societies. On the positive side, China contributes to the overall volume of global aid and fills the serious financial gap in developing countries. The Chinese aid model is also interpreted as an alternative development paradigm with an emphasis on the government’s role in introducing the market economy. Yet there are opinions in opposition, expressing concerns over non-conformity of China’s independent aid practices with international guidelines set and agreed by OECD DAC donors. The most common criticism is around its non-conditionality and the high proportion of tied loans.
As Korea is poised to strengthen cooperation with other emerging donors and diversify its aid modality though South-South Cooperation and Triangular Cooperation, it is important to have a balanced perspective on Chinese aid and search for effective strategies to work with China. This paper suggests in its conclusion the possibility of joint projects and sharing of development experience in Asia and Africa region.

Seoul G20 summit in November of 2010 agreed on the importance of the market-determined exchange rate policy, restraint of competitive devaluation and future discussions on the current account guideline. This international agreement may reduce the global currency conflict, in particular the conflict between the U.S. and China. However, it does not constitute a binding requirement in any form aiming at any G20 member. And because the agreement implicitly demands the considerable rate of appreciation for the renminbi, the US-China exchange rate dispute could possibly re-escalate depending on China’s exchange rate policy in the near future.

China’s large current account surplus and massive foreign exchange market intervention imply that the renminbi has been considerably undervalued. Thus the future of global currency conflict will heavily depend on China’s exchange rate management, the speed and degree of appreciation of the renminbi.

The Chinese government and the People’s Bank of China may want to allow the renminbi to appreciate not only to satisfy the demands of the international society including the U.S., but also to accomplish China’s policy goals such as growth with greater orientation toward domestic demand. China’s economy has recently experienced an annual growth of about 10 percent and a large current account surplus concurrently. Thus, to a certain extent, renminbi appreciation will lead the Chinese economy to sustainable growth without sacrificing either internal or external balance. We also suggest that it seems desirable for the U.S. not to continue the pressure for renminbi appreciation when China carries out its exchange rate policy according to market mechanisms. The policy coordination between the U.S. and China will help the world economy flourish by reducing the global currency conflict and trade protectionism.

There are limits to resolving the problem of global imbalance only by exchange rate adjustment. Increase in savings and decrease in fiscal deficits of the deficit countries, and increase in consumption and imports of surplus countries must take place simultaneously with appropriate exchange rate policies. This research deals with those structural policies of the U.S. and China to reduce the imbalance between them. This research also includes the impact of the internationalization of the renminbi on the international monetary order, which has been maintained by the dollar as the anchor currency since the end of World War Ⅱ.

The Republic of Uzbekistan, the hub of history and culture of Central Asia, has experienced remarkably high economic growth at an annual rate of 7.1% from 2002 through 2009. Uzbekistan also has the largest population among Central Asian countries, and as such, good potential for further growth. The Republic of Korea can also contribute more to the development of Uzbek Economy and is expected to have more of its private enterprises establish branches and offices in Uzbekistan. In this regard, there is a high expectation of substantial expansion of cooperation between two countries in future.

Korea should, however, acquire a deeper understanding of the ruling elites in Uzbekistan to further promote this mutual and cooperative relationship. Relatively few studies devoted to Uzbek ruling elites have been conducted by Korean scholars, though these elites exert a huge influence on policy-making and administration in Uzbekistan. As a consequence, Korean policy makers cannot help but remain poorly informed about Uzbek elites whose influence is rather extensive under the authoritarian regime led by Islam Karimov, which subsequently hinders establishing a useful network with local power elites that would be vital for bolstering the bilateral relationship between Korea and Uzbekistan. The present study provides a systematic analysis of the mechanism and characteristics of the Uzbek elite system with an eye toward its historical and cultural roots.

The study consists of five chapters. Following the Introduction, Chapter 2 applies the concept of ‘Neo-patrimonialism’ to the analysis of the Uzbek elite system. This concept is deemed especially helpful for understanding the mechanism and characteristics of Uzbek ruling elites, since its political culture possesses both traditional and modern components and patrimonial power is still a dominant factor in national politics.

Chapter 3 traces Uzbek elites concerning their historical origins and formation processes. The Uzbek territorial boundaries presently encompass various geographical, historical, cultural, religious and ethnic segments; and hence, it is necessary that we divide the country into several major historical and geopolitical regions. First of all, we present an historical overview of the state-building process of Uzbekistan and its peculiarities; and then investigate how elite cliques were formed, competed with each other, and evolved into their present form. The rivalry among Uzbek elites was closely connected to various worldwide conflicts, a dynamic of competition and cooperation among various socialist groups set in motion by the fall of the former Soviet Union and its aftermath. In this regard, analysis of major scandals over political corruption sheds light on the important aspects of factional strife and diversification in the elite cliques.

Chapter 4 gives careful consideration to the formation and development of Koryo-in (Korean diaspora living in the former Soviet Union) elites. We examine how the Koryo-in came to settle in Uzbekistan and how the elite groups were formed among them and have evolved over time to achieve influence over the contemporary political arena in Uzbekistan. This will provide very useful information, as Koryo-in elites are expected to play the role of political intermediaries in expediting creation of a constructive relationship between Korea and Uzbekistan.

The implications of the study can be summarized as follows. The elite network of Uzbekistan is formed around President Islam Karimov and his family, and the elite guard shows strong loyalty to the President while maintaining an intimate relationship with him and his family. On the other hand, elites also pursue their own personal interests on the side. Korea, therefore, should put more emphasis on the following three aspects when they plan to establish any long-term relationship with Uzbekistan. First, Korea should engage in diverse efforts to form unofficial, personal contacts with Uzbek elites to back up their official relations. Second, there is a need for more accurate information about major elite cliques and attempts to accumulate knowhow and experience in detailed negotiation procedures. Third, we need to construct a personal network of businessmen, experts and elites of both countries for long-term and lasting relationships. It is important to have various private channels that can overcome the limitations of official contact when it comes to confidence-building and mediation of disputes.

There is currently no visible resistance against the authoritarian rule of President Islam Karimov and Uzbekistan appears politically stable. However, the country also has potential risk factors. Local powers are unlikely to show absolute obedience even if centralization of power is enhanced in the near future. The central government must find ways to satisfy the wants of local elites in order to assure their loyalty. As President Islam Karimov ages and his health deteriorates, finding his political heir will become increasingly important. However, Uzbekistan requires a charismatic leader who can check and balance various elite factions while simultaneously succeeding Karimov and continuing the aging leader’s work of building the nation-state of Uzbekistan. Considering the possible change in the political environment in Uzbekistan, Korea should keep an eye out for other countries in the region as well. Korea must cooperate with neighboring Central Asian countries to prevent drastic changes in Uzbek politics from affecting adversely the potential conflict between the local powers and ethnic groups; and above all, it must pay close attention to and take care of the several million Koryo-in population in the region.

Finally, the status of Koryo-in is falling as they failed to respond actively to social changes in the country, such as emergence of strong nationalism coupled with economic hardships in Uzbekistan since its independence. The efforts by the Korean government and businessmen turned out to be largely unsuccessful in supporting the Korean diaspora in Uzbekistan and rebuilding the network with them after the fall of the former Soviet Union. The main reason for the failure is that the approach was mainly based on trying to make use of the existing network to make inroads into the country rather than giving them support for the mid and long-term with serious consideration for their mutual well-being. Korea, therefore, should help the Koryo-in population regain their social status and political influence in Uzbek society if it wants a genuine strategic partnership beyond the level of 'resource diplomacy’. In this regard, Korea can contribute to establishing higher educational institutions such as Korea-Uzbek universities, professional training centers, and schools for the next generation of Korean diaspora to help them develop skills and incorporate themselves into the mainstream of Uzbek society. Second, it is urgently necessary to construct and maintain up-to-date database of Koryo-in individuals actively involved in various professional areas in Uzbekistan. Third, the Korean government should take every possible step lest the Koryo-in be discriminated against by the local population, by selecting Uzbekistan as a beneficiary country of the Korean ODA project in 2010.

 It is safe to say that with the advent of the 21st century, the so-called, ‘age of post-Cold War, Globalization, and Information’, our future is increasingly dependent upon Asian's power. Asia's rise based on economic growth began with Japan in the 1960s and has been intensified with the rapid growth of the Chinese and Indian economy in the 1990s. The high rate of economic success seen in both countries reflects Asia's strategic significance in the world today.
With the collapse of the Cold regime, we have witnessed that the decentralization in world politics has accelerated the emergence of new powers like Chindia. Thus aggravating  budget deficit of international organizations, potential expansion of regional blocs, and increasing significance of NGOs in international decision-making process. The so-called 'Rise of the rest' resulted in a power shift in world politics as well as a big surge of Chindia. Given these, this research tries to answer the two questions; Under what conditions has India quickly emerged as a new power in Asia and how has it changed its foreign policy toward neighboring countries and is struggling with its own dilemma with respect to Soft Power. Finally, we aim to draw some implications concerning Korea-India collaboration program.
First, this research report examines dynamics of and changes in geopolitics around, below, and above India with respect to foreign policy. International regime changes resulting from the historic turn of the 20th century made many scholars pay more attention to the new characteristics of the post-Cold War regime. Some argue that the unipolar system centering around the United States can hardly maintain itself any longer. The authors would highlight the new transition from unipolar international relations to multi-polar, and to nonpolar ones by taking Haas's definition of 'post-post Cold War world' as nonpolar system.
India has changed its foreign policy rapidly along the dynamic changes in world politics. Nonalignment was a consistent feature of Indian foreign policy during the Cold War period. India pursued ideological commitment to socialism alongside democracy. But, India attempted a radical transition in foreign policy. In particular, India's adoption of the new policy, 'Look East Policy' in the mid-1990s provided a strong platform for India's rise as a big power in world politics. Domestically, India has been also well-equipped with abundant natural resources and environment, continuous economic growth, and military modernization.
Secondly, this research report examines the ups and downs of foreign policy since India's independence from British colonization in 1947. We can categorize India's foreign policy into three periods, each of which reflects significant features of the Indian foreign policy. Several core principle which penetrate all the periods are as follows; (1) India denies any separatist organization or movement and avoids  intervention of any country in domestic issues to promote  social and political integration. (2) India makes efforts to acquire national security from neighboring countries, especially Pakistan. (3) Indian top leaders are always cautious of political security in the national border. (4) India tries to strengthen its leverage in decision-making process within international organizations.
Historically, India has kept close and conflictual relations with the two giants: USA and China. During the Cold regime, India kept distance from the US. In other words, India did not hang on to the possibility of the development of India-US relation but instead pursued Non-Aligned Doctrine (NAD). The collapse of the Soviet Union and Cold regime, however, made India pay more attention to recovering its diplomatic relation with the US in order to fill the political void in world politics. On the other hand, India has kept a conflictual competitive relationship with China concerning the border conflicts since its independence. As India moves on economic transformation and stable foreign relations, it keeps developing friendly relationship with China. Both sides are still on conflictual tract because China aggressively expands into South Asia and the Southeast Asia region to compete with India for natural resources. 
Thirdly, this research report tries to narrow down its focus on Soft Power within India to see if India has developed its own Soft Power with reference to State-Society relation in the world capitalist system. India has been marginalized at the age of globalization until the mid-1980s. Various forms of globalization force provided both opportunity and threat for India. Given these, the authors try to explain how India has responded to external threats by using the concept of 'Cunning State.' To understand India's wise response to globalization, we need to understand multiple relationship between state and civil society from grassroots, to national, to regional and to international level. In addition, we need to check out how global norms are distorted within India in the course of their application to local settings. We believe that the distorting factors are closely related to dilemma the Indian government is struggling with now.
Finally, the report tries to draw some implications on Korea-India collaboration programme based on the analyses. (1) By reviewing thirty-five years of Korea-India diplomatic friendship, the authors would highlight new arrival of the big momentum between Korea and India relations in the 1990s. In January 2010, Korea and India launched a new relationship with the effectuation of 'Comprehensive Economic Partnership Agreements, CEPA). (2) the authors also address the importance of mutual complementing collaboration between Korea and India with respect to economic collaboration, collaborative foreign policy in New Asia Era, and Security Collaboration. In particular, the Korean government needs to actively develop security collaboration with India, not only to accelerate economic trade and collaboration concerning energy and natural resources, but also to promote civil diplomacy such as intellectual exchange and civil society collaboration. For instance, the research on Indian diaspora in Korea will provide a significant database for policy-makers to develop new programs about Korea-India civil exchange.   

In 2009, those of us at KIEP had designated four main research topics we deemed most pertinent to current circumstances, and engaged in twenty major projects in line with those topics. These include negotiations for liberalization of the services market and other multilateral trade issues in response to WTO regime reforms and other changes in the world trading environment; economic cooperation in APEC and other regional issues; and current bilateral trade issues including free trade agreements. KIEP conducted research to address changes in the macroeconomic environment surrounding Korea, such as changes the internationalization of the Korean won as a result of Korea's increasing prominence on the international economic scene, and presented basic resource materials and provided directions to prepare for changes in North Korea. Policy responses to global inequalities in light of the current rapid transnational movement of capital were forwarded, in addition to measures to facilitate Korea's entry into foreign markets and attract foreign investment. In recognition of rising demand for research on the world's regions, KIEP did not limit itself to providing data on Korea's major trading partners such as the US or China, but made efforts to provide basic data on Central/South America and Africa that had hitherto been lacking.

This report suggests mainstreaming of labor market issues in green aid projects. After examining the structure and characteristics of the labor market of developing countries, we present Bangladesh and Tanzania case studies where green aid projects have succeeded in reducing poverty by affecting the regulations, supply and demand of labor. More specifically, we see how a well planned green aid project could tackle the issues of informal labor, high level of unemployment, child labor, low level labor market participation by women, and low level of human capital.
The two case studies – solid waste management program in Tanzania and solar home system program in Bangladesh - show how technology localization, cooperation with international organization and governments, private public partnership, mainstreaming labor issues during the planning stage, investing in human capital, and imposing labor regulations have improved the labor market conditions.