India, South Korea target $50 billion annual trade by 2030

• President of South Korea Lee Jae Myung paid a State visit to India, marking the earliest visit to India by a Korean President after assuming office. 

• President Lee Jae Myung held discussions with Prime Minister Narendra Modi in New Delhi on April 20. 

• India and South Korea pledged to nearly double their annual trade to $50 billion by 2030.

• Following talks between the two leaders, the two sides inked agreements including one to set up an industrial cooperation framework and another on the steel supply chain to ramp up overall trajectory of ties.

• India and South Korea, two vibrant and resilient democracies of Asia and leading world economies, are connected by deep historical ties and mutual goodwill between their peoples. 

• The two nations share democratic and civilisational values and have similar interests in regional and global issues. 

• India views South Korea as an indispensable partner in its ‘Act East Policy’. 

• Similarly, South Korea views India as a central pillar of the country’s pragmatic diplomacy and inheriting and evolving the achievements of the New Southern Policy. 

Key outcomes of the meeting:

Joint Strategic Vision for India-South Korea Special Strategic Partnership: The two leaders announced the Joint Strategic Vision for implementing and adding further content to the India-South Korea Special Strategic Partnership in the next five years (2026-2030).

Comprehensive Framework for Partnership in Shipbuilding, Shipping & Maritime Logistics: The two sides adopted a Comprehensive Framework for Partnership on Shipbuilding, Shipping and Maritime Logistics and looked forward to its early implementation. They welcomed and expressed support for a range of business-to-business collaborations concluded and planned between Indian and Korean businesses for shipyard development, critical infrastructure required for shipyard establishment, port operations, and shipping & maritime logistics in India. They welcomed the opening of the office of Korea Marine Equipment Association (KOMEA) in Mumbai, the first such office that will contribute to the development of ancillary ecosystem to support the maritime industry.

Joint Statement on Cooperation in Field of Sustainability: To address global challenges affecting the future of humanity, the two leaders welcomed the adoption of a Joint Statement on Cooperation in the field of Sustainability along with the launch of a dialogue between the two foreign ministries on global themes, including climate change, Arctic, and maritime cooperation.

Joint Statement on Energy Resource Security: The leaders underlined the importance of building secure, resilient, and innovation-driven supply chains across critical minerals and advanced technologies. To this end, the two leaders agreed to cooperate across the critical minerals value chain including strengthening linkages between the geological survey organisations of the two countries for mapping and exploration of critical minerals through the use of artificial intelligence. They supported collaboration in recovery of critical minerals from unconventional sources such as e-waste and mine tailings, as part of circularity initiatives. They also agreed to explore strengthening cooperation on securing critical materials, such as naphtha, in times of supply disruption or market instability, in accordance with market conditions and commercial considerations. The two sides will explore opportunities to expand the bilateral trade of critical materials.

Establishment of the Industrial Cooperation Committee: India-South Korea Industrial Cooperation Committee, a new dialogue mechanism of the ministers responsible for Industries in the two countries, will be launched and will hold its first meeting this year.

Cooperation in the Field of Technology and Trade for Steel Supply Chain: Collaboration between India, a major economy enjoying robust growth in the steel industry and South Korea, a technology leader in green steel-making, is of critical importance. They agreed to the establishment of Annual Steel Dialogue, which would focus on boosting trade opportunities, solidifying economic ties and promoting cleaner energy in the steel sector. They also welcomed the signing of an MoU between POSCO and JSW for establishing a 6 MMT Integrated Steel Plant in Odisha.

Cooperation in the Field of Small and Medium sized Enterprises: Both sides concluded an MoU on Cooperation in the field of Small and Medium sized Enterprises (SME). They directed concerned departments/ministries to explore ways to extend India-South Korea cooperation to the SMEs of the two countries, including activities under the ambit of MoU to connect small and medium businesses to help SMEs to smoothly explore and benefit from the respective markets.

Resuming the Negotiations to upgrade the CEPA: Emphasizing the importance of realising the full potential of India-South Korea bilateral trade and to promote mutually beneficial exchanges in new avenues of trade including digital trade, supply chain collaboration and green economy, the two leaders welcomed the decision to resume and expedite the Comprehensive Economic Partnership Agreement (CEPA) upgrade negotiations for early conclusion.

MoU between IFSCA and FSS/FSC in relation to Mutual Cooperation: MoU between International Financial Services Centres Authority (IFSCA) of India and the Financial Services Commission (FSC) / Financial Supervisory Service (FSS) of South Korea for cooperation and consultation for development and supervision of cross-border financial products.

Phased integration of the digital payment systems: MoU between National Payment Corporation of India Limited (NPCIL) and Korea Financial Telecommunications and Clearings Institute (KFTC) for phased integration of the digital payment systems of the two countries to enhance inter-operability and strengthen economic and people-to-people ties. 

Framework for India-Korea Digital Bridge: Both sides welcomed the launch of a Framework for India-Korea Digital Bridge focusing on AI, data governance and digital businesses.