Eager to cement an apparent budding friendship between India and South Korea, the two countries on Sunday announced plans to increase their annual bilateral trade to $40 billion by 2015.

"Bilateral trade has risen by 65 per cent over the past two years since the implementation of our Comprehensive Economic Partnership Agreement. We have therefore set a new target of $40 billion by 2015," India Today quoted the Indian Prime Minister Manmohan Singh as saying to a joint media interaction with South Korean President Lee Myung-bak.

The Indian leader, who is currently in Seoul for the Nuclear Security Summit, held talks with the South Korean chief over the weekend. Around 60 heads of governments and states are expected to attend the Nuclear Security Summit, which runs today until tomorrow. Apart from the South Korean leader, PM Singh is expected to also meet Pakistan Prime Minister Syed Yousuf Raza Gilani and his Norwegian and Italian counterparts on the sidelines of the summit.

"Investment from Korea is a priority for India. We will take pro-active steps to address investor grievances and improve the business climate in the country. Many states of our Union have been actively encouraging foreign investment and we will support these efforts. I urge Korean industry to have faith in India," PM Singh told South Korean CEOs in his visit.

PM Singh said India continues to undertake "proactive" measures to improve the country's business climate, noting he would especially want to see the Posco mega steel plant project in Orissa to push through amid farmer protests.

The beleaguered Posco steel project has been delayed for years due to land acquisition protests by the locals. It is India's largest foreign investment project at $12 billion.

"I recognize that sometimes our processes can be slow but there are effective mechanisms for resolution of problems and differences and a strong rule of law. The government is keen to move forward with the Posco project and there is some progress in this regard. I believe that India is a stable and profitable long-term investment opportunity," PM Singh said.