- India and South Korea will upgrade their free trade agreement to boost trade to $50 billion by 2030
- PM Modi and President Lee signed MoUs on AI, shipbuilding, and energy cooperation in New Delhi
- The two nations launched the India-Korea Financial Forum and Industrial Cooperation Committee
India and South Korea will upgrade their existing free trade agreement to cement economic ties with the aim to double bilateral trade to $50 billion by 2030. Prime Minister Narendra Modi and President Lee Jae Myung met in New Delhi on Monday and witnessed the exchange of MoUs on cooperation in artificial intelligence, shipbuilding and energy.
"Bilateral trade between India and Korea has reached $27 billion. Today, we have taken several important decisions to increase this to $50 billion by 2030," Modi said in a joint press briefing. "We will realise new opportunities for cooperation in every field, from chips to ships, talent to technology, environment to energy, and together ensure the progress and prosperity of both countries," he added.
"In this era of global tensions, India and Korea together convey a message of peace and stability. We are delighted that today Korea is joining the International Solar Alliance and the Indo-Pacific Oceans Initiative. Through our shared efforts, we will continue to contribute to a peaceful, progressive, and inclusive Indo-Pacific," the PM added.
The two leaders launched the India-Korea Financial Forum and an Industrial Cooperation Committee to strengthen business cooperation. "To facilitate the entry of Korean companies, especially SMEs, into India, we will also establish Korean Industrial Townships and within the next one year, we will also upgrade the India-Korea Trade Agreement," Modi said.
Commerce Minister Piyush Goyal met his South Korean counterpart Yeo Han-koo to discuss ways to resume and revamp the India-Korea Comprehensive Economic Partnership Agreement (CEPA), signed in 2009 and effective since 2010, upgrade negotiations and explore opportunities for deeper cooperation in industrial cooperation, green energy and digital trade, a statement said.
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Ships, Chips, Critical Minerals
The two countries will establish the 'India-Korea Digital Bridge' for cooperation in AI, semiconductors, and information technology. South Korea has been the biggest beneficiary of the AI boom with companies like Samsung Electronics and SK Hynix leading semiconductor exports — specifically memory chips for data centres — driven by global demand for AI computing power.
President Lee's visit is his first official trip to India since taking office, and the first visit by a South Korean president to the country in eight years. Top corporate leaders have joined the official delegation.
Lee said the two countries have agreed to partner on defence and critical minerals under an Economic Security Dialogue. South Korean companies will work with Indian states to set up shipbuilding facilities, facilitating orders and on incentives for ship production.
The global shipbuilding industry is dominated by China, South Korea, and Japan, which together control over 90% of total production. India has been ramping up efforts to build domestic capacity, unveiling large subsidy schemes to attract private capital.
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