Amid the changing global economic systems, the India-South Korea partnership is significant for its resilience, adaptability and forward-looking strategy. Initially centred on trade, the relationship now embraces technology, manufacturing, innovation and robust people-to-people ties.
On Monday, India and South Korea reaffirmed their commitment to a strong partnership and expressed clear intentions for further growth in ties. Bilateral trade is approaching $27 billion, which the two countries now aim to take to $50 billion by 2030. This multifaceted relationship echoes the readiness of both nations to invest in long-term, sustainable collaboration that extends beyond economic gains to touch cultural and social engagement.
A significant aspect of this partnership is the strong presence of Korean businesses in India. Korean investments have transformed sectors such as automobiles, electronics and advanced manufacturing, supporting industrial growth, job creation, supply chain improvements and technological advancement. Korean electronics brands succeeded in India not just because of good products, but because they understood local needs, invested for the long term, priced their products smartly and built strong brands. Adapting to Indian consumers and focusing on trust and service helped Korean companies act more like local companies rather than foreign sellers. At the same time, Indian companies are seeking opportunities in South Korea, particularly in IT services, pharmaceuticals and emerging technologies.
The next phase of partnership between India and South Korea should prioritise inclusivity and diversity. While large companies have led the journey of economic partnership between India and South Korea so far, future progress depends on greater involvement from small and medium enterprises (SMEs). As the backbone of both economies, increased SME participation in trade and investment is essential for sustainable, broad-based growth of cooperation.
A key driver for Korean SMEs to enter the Indian market would be facilitation with respect to regulations, business practices and market structures. Addressing these critical factors requires structured support from both governments and industries. Industry associations can provide guidance, foster partnerships and build confidence for businesses seeking to expand in India.
Establishing dedicated platforms such as an India-Korea SME Dialogue Forum would facilitate regular meetings, knowledge sharing and problem-solving, making collaboration easier. Raising awareness of opportunities, regulations and incentives in India is also important. Resources like Korean-language business guides, explainer videos and case studies can help bridge the gaps in information. Re-negotiating and updating the Comprehensive Economic Partnership Agreement (CEPA) has emerged as a key priority for Indian exports to have a deeper penetration in South Korean markets. A modernised CEPA can catalyse and improve market access, and open up new avenues for trade and investment between India and South Korea. To fully realise its advantages, businesses in both countries need to make greater use of the agreement. Beyond traditional sectors, the India-South Korea partnership holds significant potential in strategic areas such as semiconductors, electric vehicles, batteries, shipbuilding, clean energy and critical minerals. Collaboration in these fields will benefit both economies and strengthen global supply chains.
Strengthening diverse supply chains is increasingly important, as recent global disruptions have highlighted the risks of regional concentration. With robust industries and advanced technology, India and South Korea are well-positioned to collaborate on establishing resilient, future-ready supply chains.
The human dimension of this partnership is equally important. Strong connections, particularly among young professionals and entrepreneurs, will sustain the relationship over time. Initiatives such as internships, exchange visits and joint research can foster understanding and develop future leaders dedicated to the partnership.
At this pivotal moment when there are major re-alignments happening in the global economy and the fine line between geoeconomics and geopolitics has blurred, the India-Korea partnership is entering a new phase characterised by ambition, innovation and inclusion. Built on trust, shared values and economic strengths, the relationship should now advance through clear focus and effective collaboration.
In conclusion, the India-South Korea partnership illustrates how countries with shared goals and complementary strengths can work together for mutual benefit and global impact. By addressing challenges, fostering innovation and prioritising inclusive growth, both nations are ready to explore new possibilities across sectors—from traditional industries to cutting-edge technologies.
Unrelenting collaboration, greater institutional ties and a strong focus on people-to-people connections will ensure that Korea-India partnership not only remains resilient but also continues to prosper and set new models for international cooperation in the years ahead.
Chandrajit Banerjee | Director General, Confederation of Indian Industry
(Views are personal)
(cb@cii.in)