Source Credit : Portfolio Prints
India and South Korea signalled a renewed push to deepen economic ties on Monday, outlining plans to expand cooperation across energy, critical minerals, shipbuilding, semiconductors and steel, with an ambitious goal of doubling bilateral trade to $50 billion by 2030.
New Delhi and Seoul also agreed to revive and accelerate negotiations to upgrade their 2010 trade agreement. The move reflects India’s push for a more balanced trade relationship, while South Korea seeks broader access to one of the world’s fastest-growing major economies.
The announcement came during a three-day visit to India by South Korean President Lee Jae Myung—the first such state visit in eight years. Following talks with Indian Prime Minister Narendra Modi, Lee said the two countries had agreed to “upgrade the framework of economic cooperation… to create a new engine for shared growth.”
A key outcome was the establishment of a ministerial-level economic cooperation committee—the first of its kind between the two nations. Both sides committed to closer collaboration in nuclear energy, clean energy, trade and investment, signalling a broader strategic alignment beyond traditional sectors.
Energy security featured prominently in the discussions. Amid tightening global supply conditions linked to tensions in the Middle East, the two countries pledged continued coordination to ensure stable access to energy resources and key inputs such as naphtha.
Modi described the visit as “extremely significant,” noting that the decisions taken would lay “the foundation for the success story of the next decade.” He also highlighted the deep historical and civilisational links between the two countries, underscoring the relationship’s long-term potential.
India’s Commerce and Industry Minister Piyush Goyal said he held separate talks with South Korea’s trade minister Yeo Han-koo to explore ways to modernise the trade pact. Discussions focused on expanding cooperation in industry, green energy and digital trade—areas seen as critical for future growth.
Later on Monday, Lee is scheduled to attend a joint business forum expected to draw around 250 South Korean participants, including executives from major conglomerates such as Samsung Electronics, Hyundai Motor and LG Group. On the sidelines, the two sides are expected to sign around 20 private-sector memoranda of understanding spanning shipbuilding, digital technology and energy.
In a parallel development, POSCO Holdings announced plans to invest about $1.09 billion by 2031 in a joint venture integrated steel plant with India’s JSW Steel in Odisha. The project, unveiled last week, will have a planned capacity of 6 million tonnes per year and represents one of the most significant industrial collaborations between the two countries.
Despite growing economic engagement, structural imbalances remain a concern. South Korea recorded a $12.8 billion trade surplus with India last year, exporting $19.2 billion worth of goods while importing $6.4 billion. Analysts note that while commercial ties have expanded rapidly, political alignment has not always kept pace—an issue both sides now appear keen to address as they recalibrate their partnership for the next decade.
