New Delhi (TDI): India and South Korea on Monday announced plans to significantly expand economic cooperation across key strategic sectors, including energy, critical minerals, shipbuilding, semiconductors, and steel, as both countries aim to double bilateral trade to $50 billion by 2030.
The announcement came during South Korean President Lee Jae Myung’s three-day state visit to India, the first by a South Korean president in eight years, marking a renewed push to strengthen economic and strategic ties between the two Asian partners.
Both sides agreed to accelerate and broaden negotiations on upgrading their 2010 trade agreement, with India seeking a more balanced trade relationship and South Korea pushing for improved market access in one of the world’s fastest-growing major economies.
“We decided to upgrade the framework of economic cooperation between the two countries to create a new engine for shared growth,” President Lee said following talks with Indian Prime Minister Narendra Modi.
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Prime Minister Modi described the visit as “extremely significant,” saying the two countries had taken important decisions to significantly expand bilateral trade and lay “the foundation for the success story of the next decade.”
India and South Korea also agreed to establish a new ministerial-level economic cooperation committee, aimed at deepening collaboration in nuclear energy, clean energy transition, trade, and investment.
In response to global energy pressures, including disruptions linked to the ongoing Iran conflict, both countries pledged closer coordination on ensuring stable supplies of energy resources and critical raw materials such as naphtha.
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India’s Trade Minister Piyush Goyal said discussions with his South Korean counterpart focused on revamping the trade framework and expanding cooperation in green energy, digital trade, and industrial development.
A major highlight of the visit was a business forum attended by around 250 South Korean industry leaders, including representatives from Samsung Electronics, Hyundai Motor, and LG Group. The forum is expected to produce around 20 private-sector memoranda of understanding covering shipbuilding, digital technology, and energy cooperation.
In a significant industrial development, South Korea’s Posco Holdings announced plans to establish a joint steel venture with India’s JSW in Odisha, involving an investment of approximately $1.09 billion by 2031. The project will develop a 6-million-ton-per-annum steel plant, further deepening industrial integration between the two economies.
Despite strong commercial ties, analysts note that South Korea continues to maintain a trade surplus with India, highlighting ongoing structural imbalances in the economic relationship.
