India and South Korea aim to double bilateral trade, upgrade CEPA

India and South Korea are eyeing doubling bilateral trade to USD 54 bn by 2030, up from the current USD 27 bn, according to a statement from the Commerce and Industry Ministry. The two countries agreed to fast-track the upgrade of their 2010 comprehensive economic partnership agreement to improve market access and resolve trade imbalances. The announcement came during South Korean President Lee Jae Myung’s India visit.

Focus sectors expand: The two countries will collaborate across energy, critical minerals, semiconductors, shipbuilding, and steel, while setting up ministerial-level economic cooperation mechanisms. With the Iran war tightening global energy supplies, Lee’s visit centered on cooperation to secure energy resources and key inputs like naphtha. A joint business forum was attended by leaders of Korean conglomerates including Samsung, LG Group, and Hyundai.

A new steel JV: South Korean steelmaking major Posco is committing USD 1.09 bn through 2031 for setting up a 6 mn-ton integrated steel plant in Odisha through a JV with India’s JSW Steel, as per an exchange filing. Posco’s solo attempt to enter Odisha ended in a high-profile exit in 2017 after years of local resistance, regulatory and land-acquisition gridlock.

Why it matters: South Korea is an important source of foreign direct investment in India’s heavy industries including metallurgical, automobiles, machine tools, and plant processing equipment. India is pushing for a more balanced trade relationship, running a deficit of USD 15.4 bn with the country.