India and South Korea have unveiled an ambitious plan to significantly expand their economic partnership, aiming to double bilateral trade to $50 billion by 2030, up from the current level of approximately $27 billion. The announcement came during a high-level state visit by South Korean President Lee Jae Myung to India, marking the first such presidential visit in eight years.
Expanding Cooperation Across Key Strategic Sectors
Both countries agreed to increase cooperation in critical sectors including energy, critical minerals, shipbuilding, semiconductors, and steel; reflecting a shared interest in strengthening supply chain resilience amid global economic uncertainty. The partnership will also extend to nuclear power, clean energy, trade, and investment, with a renewed focus on long-term industrial collaboration.
A key highlight of the discussions was cooperation on ensuring stable energy and raw material supply chains, including commodities such as naphtha, especially in light of global energy disruptions linked to tensions in the Middle East.
Trade Pact Revival and Market Access Negotiations
India and South Korea will resume and intensify negotiations on their 2010 trade agreement, with both sides seeking to rebalance economic flows. India is pushing for a more balanced trade relationship, while South Korea is seeking greater market access in one of the world’s fastest-growing major economies.
Indian Commerce and Industry Minister Piyush Goyal held talks with South Korea’s Trade Minister Yeo Han-koo to accelerate progress on upgrading the agreement. Discussions also covered expanding cooperation in green energy, digital trade, and industrial manufacturing.
Institutional and Business-Level Engagements
For the first time, both nations have established a ministerial-level economic cooperation committee, signaling a stronger institutional framework to guide bilateral economic engagement.
A major business forum accompanying the visit will bring together around 250 South Korean executives, including representatives from major conglomerates such as Samsung Electronics, Hyundai Motor, and LG Group. Around 20 private-sector memorandums of understanding (MOUs) are expected to be signed, covering sectors like shipbuilding, digital technology, and energy infrastructure.
Major Industrial Investment in Steel Sector
A significant highlight of the visit is a major industrial partnership between South Korea’s POSCO Holdings and India’s JSW group. The two companies will establish a joint venture steel plant in Odisha with a planned capacity of 6 million tonnes per annum and a total investment of approximately $1.09 billion by 2031.
Addressing Trade Imbalance and Strengthening Political Alignment
A recent policy seminar highlighted concerns over India’s widening trade deficit with South Korea, noting that while commercial ties have expanded rapidly, political engagement has lagged behind economic growth.
Latest trade data shows South Korea maintains a significant surplus, with $19.2 billion in exports to India compared to $6.4 billion in imports, resulting in a $12.8 billion surplus.
Strategic Outlook
During the visit, President Lee Jae Myung emphasized upgrading the bilateral economic framework to serve as a “new engine for shared growth.” Prime Minister Narendra Modi described the engagement as a cornerstone for the “next decade” of cooperation, highlighting historical civilisational ties alongside modern economic convergence.
President Lee is scheduled to continue his regional tour with a visit to Vietnam following the conclusion of his India visit, underscoring South Korea’s broader push to strengthen ties across Asia.
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