India Korea Trade
The Republic of Korea is India’s 13th largest FDI investor from April 2000-March 2024, standing at US$ 5.85 billion.
Last updated: Sep, 2026
Introduction
India and South Korea continue to deepen their Special Strategic Partnership, with expanding cooperation across trade, investment, advanced manufacturing, semiconductors, clean energy, artificial intelligence, defence and digital technologies. Both countries have reaffirmed their commitment to strengthening resilient supply chains, maritime cooperation and people-to-people ties, reflecting a shared vision for sustainable economic growth and strategic collaboration.
India-Korea Trade
- South Korea occupies the 13th position in foreign direct investment (FDI) equity inflows into India with a cumulative FDI amount of US$ 7.13 billion from January 2000 to March 2026.
- South Korea ranks 22nd as an export destination and 11th as an import source.
- Bilateral trade between India and Korea stood at US$ 27.37 billion in FY 2026.
- India and South Korea aim to increase bilateral trade to US$ 54 billion by 2030 through the expansion of the Comprehensive Economic Partnership Agreement (CEPA).
Major exports from India to Korea
- India’s exports to Korea stood at around US$ 6.01 billion during FY26.
- India exported 4,132 commodities to Korea in FY26.
- Major exported items from India to Korea include engineering goods (US$ 3,030.90 million), petroleum products (US$ 769.65 million), organic and inorganic chemicals (US$ 709.31 million), gems and jewellery (US$ 186.93 million), drugs and pharmaceuticals (US$ 174.50 million), cotton yarn/fabrics/made-ups, handloom products, etc. (US$ 138.15 million), electronic goods (US$ 111.57 million), mica, coal and other ores and minerals (US$ 97.52 million), and oil meals (US$ 80.11 million), among others.
Major imports by India from Korea
- Imports from Korea to India stood at US$ 21.354 billion during FY26.
- India imported 3,905 commodities from Korea in FY26.
- India’s imports from Korea include leather and leather products (US$ 5.47 billion), iron and steel (US$ 2.92 billion), machinery, electrical and non-electrical (US$ 2.45 billion), artificial resins, plastic materials, etc. (US$ 2.22 billion), transport equipment (US$ 1.56 billion), organic and inorganic chemicals (US$ 1.55 billion), petroleum, crude and products (US$ 1.43 billion), non-ferrous metals (US$ 1.26 billion), machine tools (US$ 606.49 million), and other products (US$ 558.41 million), among others.
Economic Relations and Investments
- On May 21, 2026, Maharashtra signed three MoUs with leading South Korean institutions, including Korea Polytechnics, NILE and KAIST, to strengthen vocational education, industry-oriented skill development, technology transfer and global employment opportunities for Indian youth.
- On April 20, 2026, India and South Korea agreed to double bilateral trade to US$ 54 billion by 2030, accelerate the CEPA upgrade, signed 16 MoUs and an MoU to establish the India–Korea Industrial Cooperation Committee with four working groups on trade, industry, strategic resources and clean energy, while identifying semiconductors, electronics, advanced manufacturing, e-mobility, green energy, shipbuilding, critical minerals and digital technologies as priority sectors for bilateral investment and industrial collaboration.
- On April 20, 2026, Prime Minister Mr. Narendra Modi and President Mr. Lee Jae-myung agreed to establish a Korea-specific industrial enclave in India with plug-and-play infrastructure to facilitate investments by Korean companies and enhance India's manufacturing ecosystem.
- On November 04, 2025, the PHD Chamber of Commerce and Industry (PHDCCI) and the Busan Chamber of Commerce and Industry (BCCI) signed a Memorandum of Understanding in New Delhi to promote bilateral trade and industrial cooperation, facilitating opportunities in manufacturing, clean energy, digital technology, maritime logistics, and emerging sectors for joint ventures and investment partnerships.
- On October 10, 2025, during the G20 Trade and Investment Ministers’ Meeting in South Africa, India and South Korea agreed to explore joint initiatives in electronics manufacturing, electric vehicle (EV) components, and trusted digital supply chains, reflecting a broader agenda to boost trade and industrial cooperation.
- On October 15, 2025, India and South Korea strengthened ties with a technology-driven partnership focusing on semiconductor collaboration and clean energy, particularly in solar, wind, energy storage, and green hydrogen sectors, leveraging complementary national priorities and investment potential.
- On April 18, 2025, the Mumbai Metropolitan Region Development Authority (MMRDA) welcomed a high-level Korean delegation at the India Global Forum 2025 to deepen collaboration on infrastructure, technology, smart governance, and investment aligned with the Mumbai 3.0 vision, building on a previously signed MMRDA–World Smart Cities Forum MoU.
- On April 04, 2025, India and South Korea held a joint forum on growth strategy in Seoul to discuss measures to expand bilateral cooperation in trade, investment, advanced manufacturing, and renewable energy, reaffirming commitments to strengthen economic ties.
- In April 2025, the Embassy of the Republic of Korea in India, in collaboration with India’s think tank ORF (Observer Research Foundation), hosted the 2nd Korea-India-U.S. 1.5 Track Dialogue under the theme, “Korea-India-U.S. Triangular Partnership: Vision, Scope, and Synergy.”
- A Korean delegation led by Mr. Jund Deok Min, Chairman of Make in India Korea, and Mr. Goo, Special Advisor to Lotte Group, met Andhra Pradesh ministers Mr. TG Bharath and Mr. Kondapalli Srinivas to explore trade and investment opportunities. Key discussions included setting up a skill academy under a PPP model, collaboration with Korean firms for training, developing a Korean MSME industrial complex, boosting investments in sectors like agro and marine processing, reviving mango exports, and expanding Indian products such as Ayurveda and handicrafts in the Korean market.
- In August 2023, Union minister Mr. Rajeev Chandrasekhar discussed potential collaboration with South Korean ministerial delegators on digital infrastructure, India Stack, AI, skilling, and cybersecurity during bilateral meetings.
- The India-Korea Electronic Origin Data Exchange System (EODES) has been inaugurated to expedite the clearance process of imported goods. EODES is designed to streamline the implementation of the India-Korea Comprehensive Economic Partnership Agreement (CEPA) through the electronic exchange of origin information between the customs administrations of the two nations, specifically for goods traded under the CEPA.
- Indian companies like Mahindra and Mahindra, Tata Motors, and banks like State Bank of India and Bank of Baroda have large investments in South Korea.
- India and ROK launched an initiative ‘Korea Plus’, as proposed by Prime Minister Mr. Narendra Modi in June 2016 in India to promote and facilitate Korean Investments in India. A Korea India SME and Start-up Centre was launched in September 2019.
- India and South Korea signed an arrangement on November 30, 2022, regarding the Economic Development Cooperation Fund loan of over US$ 1,900 million (245 billion Korean Won) for the establishment of an Intelligent Transport System on the Nagpur-Mumbai Super Communication Expressway Project in Delhi. The project's objective is to enhance traffic management efficiency by establishing the Intelligent Traffic Management System.
Recent Trends & developments
- On July 1, 2026, South Korea extended the visa application fee waiver for short-term group tourists from India until December 31, 2026, to boost tourism, facilitate travel and strengthen people-to-people exchanges between the two countries.
- On June 24-25, 2026, India and South Korea agreed to strengthen cooperation in trade, investment, finance, economic security, emerging technologies and resilient supply chains, while reviewing the implementation of the 2026–2030 Joint Strategic Vision adopted during President Lee Jae-myung's visit to India.
- On April 20, 2026, India and South Korea launched a Comprehensive Framework for Partnership in Shipbuilding, Shipping and Maritime Logistics to strengthen cooperation in shipbuilding, green shipping, smart ports, maritime logistics and resilient supply chains, while promoting investment, technology exchange and capacity building in the maritime sector.
- On March 13, 2026, Union Minister of Commerce and Industry Mr. Piyush Goyal and South Korea's Trade Minister Mr. Yeo Han-koo agreed to resume and accelerate negotiations on upgrading the India–Korea CEPA, while reaffirming cooperation in bilateral trade, investment, supply chains, industrial development, green energy and digital trade.
- In 2025, PHD Chamber of Commerce and Industry (PHDCCI) and the Busan Chamber signed an MoU to deepen India–South Korea trade ties, promoting stronger commercial engagement and structured economic cooperation.
- In 2025, India and South Korea advanced strategic partnerships in semiconductors and green energy, reflecting shared priorities in advanced manufacturing and clean technology.
- In 2025, the India–Korea Smart City partnership featured in Mumbai’s 3.0 Vision initiative, highlighting cooperation in urban development and smart infrastructure.
- India and South Korea are exploring joint initiatives in electronics, EV components and digital supply chains to strengthen bilateral industrial linkages.
- In 2025, India and South Korea held government-level discussions to enhance trade cooperation and identify measures to boost bilateral trade.
- On December 09, 2025, Punjab Chief Minister Mr. Bhagwant Mann invited major Korean firms (e.g., Daewoo, GS E&C, Nongshim, SBA) to invest in Punjab’s infrastructure, renewable energy and smart city initiatives during his visit to South Korea, signalling stronger business engagement and opportunities for tech transfer and startup support.
- On September 23, 2025, Cochin Shipyard Limited signed a long-term MoU with HD Korea Shipbuilding & Offshore Engineering to boost India’s shipbuilding capabilities, combining Indian infrastructure with Korean technology, expected to generate jobs and strengthen industrial collaboration.
- On September 02–04, 2025 At SEMICON India 2025, South Korea participated as one of the international pavilions, reflecting increased bilateral cooperation in semiconductor and electronics value chains and India’s integration into global tech ecosystems.
- India’s merchandise exports to South Korea increased (e.g., more than 40% constituted by engineering goods), supported by tariff reductions and better market access under the India-Korea CEPA, showing growth in bilateral trade and trust in Indian products.
- On April 3, 2025, South Korean defence giant Hanwha Aerospace announced that it has signed a 371.4 billion Won contract to export its indigenously developed K9 self-propelled howitzers to India. In collaboration with Mumbai-based Larsen & Toubro, the company will deliver the howitzers to the Indian Army by September 2030.
- South Korean shipbuilding giant HD Hyundai Heavy Industries (HHI) is looking to set up a shipyard in India and has already made a visit to India to scout for potential sites,
- South Korea’s leading asset manager Mirae Asset Global Investments has purchased a logistics centre near Mumbai in the latest move to expand its portfolio in one of the world’s fastest-growing economies.
- Confederation of Indian Industry (CII) in partnership with the Korea International Trade Association (KITA) organised the India Korea Business Partnership Forum on 10th November 2023.
- The 9th round of the India-Republic of Korea (ROK) Comprehensive Economic Partnership Agreement (CEPA) up-gradation negotiation was held in Seoul from November 3-4, 2022. Both sides shared the hope that the CEPA upgradation negotiations would play an important role in strengthening and deepening economic cooperation between both countries.
- Korea’s New Southern Policy reveals areas where maritime cooperation between the two countries can be further developed. These include shipbuilding (an area where India and South Korea already have a Memorandum of Understanding), joint capacity building, maritime realm awareness, humanitarian aid and disaster relief, search and rescue, marine pollution, anti-piracy, anti-terrorism and anti-trafficking, and prevention of marine pollution.
- On April 25, 2023, the 11th High-Level Meeting (HLM) took place in New Delhi between the Indian Coast Guard and the Korean Coast Guard. This meeting, conducted in accordance with the Memorandum of Understanding (MoU) established in 2006, aims to enhance operational-level collaboration and capacity building. The focus of the HLM is on areas such as Maritime Search & Rescue (M-SAR), Marine Pollution Response (MPR), and Maritime Law Enforcement (MLE).
Conclusion
India-Korea relations are on an upward trajectory, built on expanding strategic cooperation and mutual economic goals. The two nations' focus on high-tech sectors and sustained diplomatic engagement signals robust, forward-looking collaboration, strengthening bilateral ties and regional impact.
Contacts
- Embassy of India in Korea
Address: 101, Hannam Dong, Dokseodang-ro, Yongsan-gu, Seoul 04419, Republic of Korea;
Telephone: +82-2-798-4257; +82-2-798-4268;+82-2-798-4244;+82-2-798-0962;+82- 2-798-2653;
Email: cons.seoul@mea.gov.in
Mr. Gourangalal Das (Ambassador);
Email: amb.seoul@mea.gov.in
Telephone: +82-2-797-9308;
Mr. Nishi Kant Singh (Deputy Chief of Mission);
Email: dcm.seoul@mea.gov.in
Telephone: +82-2-790-5488; - Embassy of Korea in India
Address: 9, Chandragupta Marg, Chanakyapuri Extension, Chanakyapuri, New Delhi, Delhi 110021;
Phone: +91-11-4200-7000;
Email: india@mofa.go.kr
Mr. Lee Seong-ho (Ambassador)
FAQs
Engineering goods were India's largest export to Korea at US$ 3.03 billion in FY26, followed by petroleum products (US$ 769.65 million), organic and inorganic chemicals (US$ 709.31 million), gems and jewellery, and drugs and pharmaceuticals.
India Korea trade reached US$ 27.37 billion in FY26, with both countries agreeing to increase bilateral trade to US$ 54 billion by 2030 through the expansion of the Comprehensive Economic Partnership Agreement (CEPA).
Trade growth is being driven by priority sectors identified under bilateral cooperation, including semiconductors, electronics, advanced manufacturing, e-mobility, green energy, shipbuilding, critical minerals and digital technologies.
The Korean market offers opportunities through improved market access under CEPA, expanding industrial collaboration and increasing demand for engineering goods, chemicals and other manufactured products from India.
Korea imports from India are led by engineering goods, petroleum products, organic and inorganic chemicals, gems and jewellery, drugs and pharmaceuticals, and cotton yarn and fabrics, reflecting India's diversified export basket.
The India Korea economic partnership supports business growth through the proposed CEPA upgrade, the India–Korea Industrial Cooperation Committee and multiple MoUs that promote investment, technology transfer and industrial collaboration.
Emerging opportunities are expected in semiconductors, shipbuilding, shipping and maritime logistics, EV components, clean energy, green hydrogen and digital technologies, supported by recent bilateral initiatives.
The growth of India Korea trade is supported by the CEPA upgrade process, tariff reductions, high-level government engagements, expanding investments and stronger cooperation in resilient supply chains and industrial development.
Indian businesses can expand India exports to Korea by leveraging CEPA provisions, improved market access, and opportunities arising from bilateral cooperation in manufacturing, electronics, clean energy and logistics.
Products related to electronics, semiconductor value chains, EV components, green energy technologies, maritime equipment and advanced manufacturing are expected to have strong export potential in the Korean market.
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