India and South Korea are moving to deepen economic cooperation with an ambitious plan to raise bilateral trade to $50 billion by 2030. The two countries will reopen negotiations to revise their existing trade pact, while placing renewed focus on strategic sectors such as steel, semiconductors, shipbuilding, energy and supply chains.
This development could create fresh opportunities for steel trade, industrial investment and cross-border manufacturing partnerships.
India and South Korea to revise existing trade agreement
According to a joint statement released on April 21, India and South Korea agreed to resume and intensify negotiations on the Comprehensive Economic Partnership Agreement (CEPA) first signed in 2010.
India is seeking a more balanced trade relationship, while South Korea is aiming for greater access to the Indian market.
The decision was finalized during the three-day India visit of Lee Jae Myung, who was accompanied by more than 200 business representatives. “We decided to upgrade the framework of economic cooperation between the two countries to create a new engine for shared growth,” Lee said after talks with Indian Prime Minister Narendra Modi.
Steel sector emerges as a key area of cooperation
Among the sectors highlighted in the new roadmap, steel stands out as one of the most significant industrial areas.
Earlier this week, JSW Steel and POSCO agreed to form a 50:50 joint venture to build a 6 million mt per year integrated steel plant in Odisha, India. This marks a renewed expansion attempt by POSCO in India after its previous project in Odisha did not move forward.
New economic cooperation committee established
The two governments also announced the launch of a ministerial-level economic cooperation committee for the first time. This body is expected to accelerate collaboration in energy security, critical minerals, semiconductors, shipbuilding, steel and industrial supply chains. The move reflects growing efforts by both countries to reduce supply chain risks amid global economic uncertainty.
