India, South Korea Aim To Double Trade To $50 Billion By 2030, Resume Pact Talks

India and South Korea, on April 21, agreed to strengthen economic cooperation and target bilateral trade of $50 billion by 2030, while restarting negotiations to upgrade their 2010 trade agreement, according to Reuters.

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The announcement came during South Korean President Lee Jae Myung’s three-day visit to India, the first presidential state visit from South Korea in eight years. He is accompanied by around 200 business representatives, as per Reuters.

Prime Minister Narendra Modi said both countries have taken steps to expand trade from about $27 billion currently to $50 billion by 2030.

Focus On Key Sectors

The two countries agreed to expand cooperation in sectors including energy, critical minerals, shipbuilding, semiconductors, and steel. They also decided to establish a ministerial-level economic cooperation committee for the first time to strengthen trade and investment ties, according to Reuters.

President Lee said both countries would enhance cooperation in nuclear power, clean energy, and supply of key raw materials such as naphtha. The discussions also included ensuring stable energy supplies amid global disruptions linked to West Asia developments.

Trade Pact Talks To Resume

India and South Korea will resume and accelerate discussions to update their 2010 trade agreement. The move is aimed at addressing trade imbalances and improving market access, according to Reuters.

India’s Commerce and Industry Minister Piyush Goyal said both sides agreed to fast-track negotiations, including easing non-tariff barriers, revisiting rules of origin, and expanding trade opportunities.

Investment And Industry Developments

As part of industrial cooperation, South Korea’s POSCO Holdings plans to invest about $1.09 billion by 2031 to build a joint venture integrated steel plant in Odisha with JSW Steel, according to a regulatory filing cited by Reuters. The plant will have a capacity of 6 million tonnes per annum.

Executives from major South Korean companies, including Samsung Electronics, Hyundai Motor, and LG Group, participated in a business forum held during the visit.

Trade Balance Data

South Korea recorded a trade surplus of $12.8 billion with India in the previous year, with exports of $19.2 billion and imports of $6.4 billion, according to data from the Korea International Trade Association cited by Reuters.

The renewed engagement and sectoral agreements are a step toward strengthening economic ties between the two countries and moving forward with talks about trade and investment.