Unlocking India-Zuid-Korea Trade Opportunities: Insights of the recent Partnership Economic Forum in Seoul

As the world economy undergoes disruption because of the recent rates of the Trump administration, large export economies such as South Korea are guided confronted with an urgent need To diversify by using unused trade opportunities with emerging economies such as India. In a recent attempt to bring and strengthen this partnership, the India in Seoul embassy, ​​together with the Korea Institute for International Economic Policy (Kiep), hosted The “Korea-India Economic Partnership Forum: shaping the future of the Indo-Pacific.” Teached by diplomats, managers, scientists and business consultants, the forum was organized to revise the performance of trade relations in India-Zuid-Korea and to investigate ways to promote economic cooperation between two countries.

The forum has tackled various themes, such as the growing geopolitical importance of the Indo-Pacific; the performance and persistent challenges in bilateral trade and investments; And the identification of sectors that have a great potential for future cooperation. Indian ambassador in South Korea Amit Kumar pointed to the growing Korean investments and business interests in India, while also emphasizing more opportunities in sectors such as shipbuilding, green hydrogen and EV technologies. Kiep President Siwook Lee emphasized the need for crucial involvement, with reference to the growing interest and vulnerability of the Indo-Pacific.

Various managers of large South Korean conglomerates such as Hyundai and LG shared their success stories in India, with the emphasis on the reputation that their brand names have earned among Indian consumers. In the meantime, startups such as Balance Hero shared how they scaled their companies by focusing on the huge market of Indian youth.

It was generally accepted that although the ties have been deepened, the real scope for cooperation in economic cooperation is still to be fully realized.

India has not only emerged as the fastest growing major economy, but it is increasingly playing a more prominent role on the world stage. The geopolitical importance of India in the Indo-Pacific and its strategic autonomy, combined with a democratic legal system, enables it to attract strategic, economic and technological partnerships and to position an important player in worldwide supply chains in the near future. A few other important factors from an economic point of view are the demographic dividend of India, huge market, rising middle class (leading to robust and stable domestic demand), increasing purchasing power parity, stable government, continuous infrastructure development, digital transformation and technical investmenters, making it attractive for foreigners. The icing on the top is the urge for ‘Make in India’, which welcomes and encourages foreign companies to set up domestic production, infrastructure and digital innovation.

On the other hand, South Korea brings to the table expertise in advanced production, heavy electrical machines, experience in setting up global supply chains and capital -intensive technologies. South Korea has the world’s largest shipbuilding industry and is a top producer of semiconductor and electronic products. The export of the defense has also undergone significant growth, also for India. During his speech on the forum, Kumar emphasized the success of Korean K9 Howwitzers in India, which stated that “the second order of one hundred such units will help in catalyzing further defense collaborations.”

Bilateral trade between India and South Korea has reached around $ 25 billion, reflection of the growing involvement between the two economies. Large Korean companies such as Samsung, Hyundai, LG, Kia and Posco have already set up strong roots on the Indian market. Samsung runs one of the largest production facilities for mobile phones worldwide in Noida, while Hyundai India has made an important export hub for its vehicles. Government initiatives such as the 2009 Comprehensive Economic Partnership Agreement (CEPA) and Korea Plus Desk have further stimulated the Korean investments in India. The recent urge of South Korea to collaborate with the space agency of India is also seen as an important step in deepening the relationship in the room sector.

Despite these developments, however, the complete realization of opportunities remains largely untouched, especially in view of the Trump 2.0 rates and the need for diversification of the export markets of South Korea. There is a high potential for deeper trade and investment cooperation between the two countries than what has been achieved so far. Professor Sandip Kumar Mishra of Jawaharlal Nehru University, India pointed out that there is an urgent need to “walk the conversation”-the importance of converting good intentions into action-oriented progress.

The additional needs of India and South Korea-the demand from New Delhi for high-tech investments and infrastructure development In addition to Seoul’s striving for market diversification understood, a considerable convergence that places them as natural partners in an ever-volatile world economy. To realize the full potential of their economic relationship, both India and South Korea have to strive for more proactive and targeted policy strategies.

Seoul must look beyond its long-term preoccupation with the United States and China and develop a devoted India strategy that is based on the size and energy of the Indian economy. Although Korean companies have been quite successful in consumer electronics and consumer goods, shipbuilding, defense and infrastructure sectors of unused potential, where the strengths of South Korea can directly meet India’s development needs. While he takes on deep -rooted players such as Japan, South Korea can perform investments in transport infrastructure and proactively become a credible defense partner, who wins India’s initiatives to diversify traditional suppliers such as Russia and the United States.

At the same time, New Delhi must strongly emphasize the power of South Korea in high-tech production, technology and defense export and justify policy to attract Korean capital and technology. Institutional mechanisms such as regular economic tops at a high level, sector-specific consultation with specific goals and intensified CEPA negotiations must be given the top priority. Because India remains one of the world’s largest arms importers and South Korea becomes a serious defense exporter, this complementarity – if combined with political will – can form the basis for a stronger, more sustainable partnership.

In a time of global uncertainty and re-posting alliances, India and South Korea both have the opportunity and the need to build a future-oriented economic relationship that tackles the strategic imperatives of the Indo-Pacific.