South Korea And India Discuss Expanded Trade And Economic Cooperation In New Delhi

South Korean President Lee Jae Myung is in New Delhi for high-level talks with Prime Minister Narendra Modi aimed at significantly expanding economic cooperation between India and South Korea, with a strong focus on trade, shipbuilding, and emerging technology sectors.

The visit marks the first South Korean presidential state visit to India in eight years and comes at a time when both countries are looking to deepen strategic and economic alignment. President Lee is expected to hold detailed discussions with PM Modi on strengthening bilateral trade ties and expanding collaboration in key industries, including shipbuilding, artificial intelligence, defence, and finance.

Speaking at a dinner event with members of the Korean community in New Delhi on Sunday, President Lee acknowledged that current economic engagement between the two countries remains limited. He emphasized the need for a major shift in the relationship, stating that South Korea and India must move toward a more robust and transformative partnership. He added that both sides aim to significantly expand the scope of cooperation in the coming years.

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A key focus of the visit is the ongoing effort to upgrade the Comprehensive Economic Partnership Agreement between the two countries. According to presidential adviser Wi Sung-lac, India and South Korea are targeting nearly a doubling of bilateral trade to $50 billion by 2030, up from $25.7 billion recorded last year. The proposed expansion reflects growing interest in diversifying trade and strengthening supply chain resilience.

During the visit, President Lee is also participating in business engagements with corporate leaders to encourage greater investment and industrial collaboration. Officials from both sides have identified shipbuilding as a particularly promising sector, given India’s focus on job creation and South Korea’s advanced industrial capabilities. Other areas such as consumer goods and cultural industries linked to the global popularity of Korean entertainment are also being explored for future growth.

The discussions come amid global supply chain uncertainties and geopolitical tensions, including disruptions linked to conflicts in the Middle East. President Lee noted that such challenges make India and South Korea increasingly important strategic partners. He also highlighted India’s evolving role as a key hub in global production networks, rather than only a consumer market.

Separately, South Korea has recently sought increased naphtha imports from India to reduce exposure to supply disruptions. India currently accounts for about 8% of South Korea’s naphtha imports, and expanded trade in this area is also seen as a way to help reduce South Korea’s trade surplus, which stood at $12.8  billion last year. After concluding his India visit, President Lee is scheduled to travel to Vietnam as part of his regional diplomatic tour.

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