India’s trade deficit with South Korea touched a decadal high of $15.24 billion in 2024–25 as exports grew just 26% while imports surged over 55% between 2014 and 2025, according to data from the Commerce Ministry. As the two countries move to revise the Comprehensive Economic Partnership Agreement (CEPA), experts say India must identify priority export segments and promote them more aggressively in the Korean market to narrow the widening trade gap.
The deficit has nearly doubled in five years—from $8.08 billion in 2018–19 to $15.24 billion in 2024–25. Exports saw their sharpest rise in 2021–22, jumping more than 72% year-on-year to nearly $8.9 billion, but have since been on a downward trend.
“There is limited knowledge among Indian exporters about the Korean market and how to find the right partners. There is a need for a detailed study on how we can export some of our agri products and labour-intensive goods to Korea. We have to identify 10–15 potential products for export and then work towards promoting them in Korea,” said Arpita Mukherjee, professor at the Indian Council for Research on International Economic Relations (ICRIER). Meanwhile, Korean firms have steadily expanded their footprint in India.
Companies such as Samsung, Hyundai, LG, and Kia have been dominant players in the automobiles and consumer electronics segments in India, while newer Korean beauty brands are also gaining traction. While imports of electrical machinery and equipment account for nearly 25% of Korea’s share in India’s imports, cosmetic imports jumped 64% in 2025 alone, according to Commerce Ministry data.
Korea’s imports are primarily led by mineral fuels and ores, followed by machinery, vehicles, chemicals, iron and steel, and plastics, according to the World Trade Organization. However, India accounts for less than 2% of Korea’s total imports.
Experts argue that India must emulate Korea’s targeted sectoral strategy. “Like Korea has focused on certain sectors to tap the Indian market, Indian exporters need to identify segments such as textiles, apparel, and handicrafts where they can expand,” Mukherjee added, noting that India’s CEPA commitments remain weaker compared with those Korea has offered other partners.