India has been recognized by local experts as a significant manufacturing and export center for South Korea, especially with the recent changes in global supply chains. Experts emphasized the need for a detailed strategy to support Korean companies in expanding their presence in the Indian market. The Ministry of Trade, Industry and Resources disclosed that discussions were held with Industry Minister Kim Jung-kwan and experts from economic research institutes and trade agencies to enhance economic ties with India.
The meeting aimed to explore ways to strengthen economic cooperation between South Korea and India in light of global supply chain shifts and trade protectionist measures by major economies. Despite India’s potential as a global manufacturing hub with a massive population of around 1.4 billion and a GDP exceeding $4 trillion, Korean companies have faced challenges entering the Indian market due to infrastructure limitations and a complex regulatory environment. To alleviate these obstacles, experts proposed establishing a dedicated industrial complex for Korean firms in India.
Currently, Korean companies in India primarily import intermediate goods to manufacture products for the Indian market. The experts suggested the need to transform India into a global export hub for South Korea. Notably, during a recent visit to India, the Korean industry minister and his Indian counterpart, Piyush Goyal, agreed to establish a joint committee to boost industrial cooperation between the two nations. Additionally, Trade Minister Yeo Han-koo and Goyal signed a joint statement to facilitate negotiations for enhancing the bilateral comprehensive economic partnership agreement.
The agreements were reached during President Lee Jae Myung’s state visit to India for a leaders’ summit, where cooperation on energy supply chains, expansion of bilateral trade, and investment were key topics. Moreover, 20 memorandums of understanding were signed between Korean and Indian companies across various sectors such as steel, shipbuilding, and energy.
