India and South Korea set an ambitious target to more than double their bilateral trade to $50 billion by 2030, marking a significant upgrade in economic and strategic engagement between the two countries.
The announcement followed wide-ranging talks in New Delhi between Prime Minister Narendra Modi and visiting South Korean President Lee Jae Myung, who is on a three-day state visit, the first by a South Korean head of state in eight years.
At the core of the discussions is a renewed push to upgrade the 2010 Comprehensive Economic Partnership Agreement. Both sides have agreed to resume and intensify negotiations, with India seeking greater market access for key exports, including steel, rice, and shrimp, while South Korea aims to expand its presence in one of the world’s fastest-growing major economies.
Trade imbalance remains a central issue
The economic recalibration comes against the backdrop of a persistent trade imbalance. India’s exports to South Korea fell to $5.81 billion in 2024–25, down from $6.41 billion the previous year, while imports stood at $21 billion. South Korea recorded a $12.8 billion trade surplus last year, a structural gap both sides now intend to address through a revamped framework.
New institutional push and digital partnership
Both countries agreed to establish a ministerial-level economic cooperation committee to strengthen coordination and accelerate decision-making on trade and investment matters.
In addition, India and South Korea signed four Memoranda of Understanding (MoU) covering sports, cultural and creative industries, small and medium enterprises, and industrial cooperation. The two sides also exchanged a joint declaration to resume CEPA upgrade talks and launch the India-Korea Digital Bridge.
The Digital Bridge aims to deepen cooperation in artificial intelligence, semiconductors, and information technology, signalling a shift towards a technology-driven partnership.
Prime Minister Narendra Modi said that the two countries were transforming their trusted relationship into a “futuristic partnership,” laying the foundation for what he described as the next decade of growth.
Strategic sectors and energy cooperation
Cooperation will now expand into semiconductors, shipbuilding, steel, nuclear energy, clean energy, digital trade, and critical minerals. Both sides also agreed to strengthen cooperation on stable supply chains for key resources such as naphtha, amid global energy disruptions linked to geopolitical tensions.
South Korean President Lee highlighted India’s emergence as a major force in the Global South and emphasised cooperation in defence, AI, and industrial innovation. Both leaders also underlined shared democratic values and a common outlook on ensuring stability in the Indo-Pacific region.
Business expansion and major investment push
The visit has also triggered strong business engagement, with around 250 South Korean industry leaders, including executives from Samsung, Hyundai, and LG, participating in a joint forum in India.
A major announcement came from POSCO Holdings, which confirmed a joint venture with India’s JSW Group to set up a 6-million-ton-per-annum integrated steel plant in Odisha. The investment is estimated at around $1.09 billion through 2031.
In addition, nearly 20 private-sector MoUs are expected across shipbuilding, energy, and digital technology sectors, reinforcing the commercial depth of the partnership.
A partnership entering a new phase
President Lee’s visit signals a clear reset in India–South Korea relations, shifting the focus from conventional trade ties to a broader strategic and industrial partnership. With global supply chains under pressure and economic blocs realigning, both countries are positioning themselves for deeper long-term cooperation anchored in technology, manufacturing, and energy security.
