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- India and South Korea to strengthen collaboration in energy sector.
- South Korea’s president makes their first state visit to India in eight years.
- After India, the South Korean president will visit Vietnam.
India and South Korea announced plans on Monday to enhance their economic partnership by expanding cooperation in energy, essential minerals, shipbuilding, semiconductors, and steel, aiming to double their trade volume to $50 billion by 2030. The two nations also agreed to restart negotiations and energize their 2010 trade pact, seeking a more balanced trade relationship—India desires more equitable trade, while South Korea seeks greater market access to India’s rapidly growing economy.
President Lee Jae Myung is on a three-day visit to India, the first South Korean presidential state visit there in eight years. After discussions with Prime Minister Narendra Modi, Lee stated, “We decided to upgrade the framework of economic cooperation to drive mutual growth.” This includes establishing a ministerial-level economic cooperation committee for the first time, with plans to boost collaboration in nuclear energy, clean energy, trade, and investment. Given the current disruptions in global energy supplies, especially due to tensions with Iran, India and South Korea will also work together to secure stable energy resources and raw materials such as naphtha.
Modi highlighted the significance of Lee’s visit, noting that both nations made key decisions to elevate two-way trade to $50 billion by 2030, up from around $27 billion today. “Today, we are laying the groundwork for the success of the coming decade,” Modi said, referencing the deep civilizational ties spanning centuries between the two countries.
Major investment in India’s steel industry
India’s Trade Minister Piyush Goyal discussed with South Korea’s Yeo Han-koo strategies to renew and enhance the trade agreement, exploring new opportunities in manufacturing, green energy, and digital commerce. Later on Monday, Lee will attend a joint business forum expected to host about 250 South Korean delegates, including executives from major companies like Samsung Electronics, Hyundai, and LG Group, according to Yonhap News Agency.
The two countries plan to sign roughly 20 private-sector memoranda of understanding related to shipbuilding, digital technology, and energy during the forum. In a separate announcement, Posco Holdings disclosed plans to partner with India’s JSW Steel to develop a large-scale steel plant in Odisha, with an investment of around $1.09 billion expected through 2031. This project, announced last week, involves building a 6-million-ton-per-year facility.
South Korea’s Maeng Hyun-chul, a researcher at Seoul National University’s Asia Center, noted last week that India’s persistent trade deficit with South Korea remains a concern, and political ties haven’t matched the scale of economic relations. Last year, South Korea recorded a trade surplus of $12.8 billion, with exports totaling $19.2 billion and imports at $6.4 billion, according to Korea International Trade Association data.
Following India, Lee plans to visit Vietnam, continuing his diplomatic engagements.
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