Discussion on Challenges Faced by Domestic Companies Regarding India's Defense Industry Promotion Policy and CEPA
The Korea Display Industry Association announced on the 31st that it held an industrial cooperation meeting with the Embassy of India at the Display Industry Hall in Songpa-gu, Seoul.
At the meeting, the association conveyed to the Indian Embassy the industry's opinions related to the Korea-India Comprehensive Economic Partnership Agreement (CEPA) and discussed establishing a cooperation channel to support the stable entry of the display industry into India in the future. They also discussed cooperation plans for the display industries of both countries.
The Indian government is actively fostering the display industry. As global companies shift their supply chain structures away from China, India is rapidly emerging as a candidate for new production bases.
Apple has also announced plans to manufacture its latest iPhone, launching in September, in India. The Indian government's goal is to expand the scale of electronics manufacturing within the country from $100.7 billion (approximately 139 trillion KRW) last year to $300 billion (approximately 413 trillion KRW) by 2026.
India is also implementing policies to promote domestic manufacturing and attract foreign investment. Local company Vedanta announced plans to establish an 8th-generation liquid crystal display (LCD) factory worth $3 billion (approximately 4.13 trillion KRW). It has signed a technology agreement with Taiwanese panel company Innolux. Japanese Sharp is also reportedly in discussions with the Indian Ministry of Communications to establish a large LCD panel production line in India.
Among domestic companies, Samsung Display entered Noida, India, and has been mass-producing small- and medium-sized organic light-emitting diode (OLED) panels since April 2021. Samsung Electronics operates the largest smartphone factory in the same area.
The association requested the Indian side to expand support for incentives in the display sector. It explained that the tariff rates under the Korea-India CEPA do not apply to OLED panels, causing difficulties for domestic companies in diversifying export items to the Indian market.
Lee Dong-wook, Vice Chairman of the Korea Display Industry Association, said, "The association will exchange information for the mutual development of both countries," adding, "If new display production line investments are made, we will serve as a communication channel to facilitate the smooth entry of Korean display materials, parts, and equipment companies into India."
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