It is heartening to see that the leaders of Korea and India, President Lee Jae Myung and Prime Minister Narendra Modi, hold a bilateral meeting. Given the weight and importance of both countries, this visit — the first between the two countries in eight years — was long overdue.
It could not be more timely to deepen economic, industrial and strategic cooperation, especially as the war in the Middle East disrupts global oil and gas supply and supply chains, pushing up inflationary pressures and threatening an economic downturn. The Strait of Hormuz blockade has further highlighted the critical importance of freedom of navigation, on which Korea and India have pledged close cooperation.
In view of this, Korea announced its accession to the International Solar Alliance, co-initiated by India and France in 2015, and the Indo-Pacific Oceans Initiative launched by India in 2019.
The two leaders agreed to expand cooperation across multiple sectors, including trade and investment, energy, shipbuilding, defense, steel and critical minerals as well as semiconductors, artificial intelligence (AI), and cultural and people-to-people exchanges. More than a dozen memorandums of understanding were signed in these critical sectors as a cornerstone for an elevated Korea-India relationship.
The two leaders signed a joint declaration to resume negotiations for upgrading the Comprehensive Economic Partnership Agreement (CEPA), a process launched in 2016 that has been stalled. Both countries aim to increase the annual trade volume from $25 billion to $30 billion by 2030. While businesses are key players in expanding trade and economic cooperation, a survey conducted by the Korea International Trade Association in October 2023 highlighted several primary challenges for companies seeking to enter India. Respondents cited difficulty using the CEPA (16.7 percent), challenges in finding local business partners (60.5 percent), a lack of market information (53.8 percent) and red tape in customs clearance (26.1 percent).
Modi announced that his office would establish a "Korea Desk" to address regulatory uncertainty and promote bilateral economic cooperation. He also suggested that Korea establish a corresponding unit within its presidential office.
The two leaders also emphasized a “futuristic partnership” with deepening ties in sectors such as shipbuilding, steel and mobile payment systems. One agreement supports Korean shipbuilding expertise in areas such as liquefied natural gas tanker technology being integrated into India's "Make in India" maritime projects. HD Hyundai Heavy Industries signed an agreement with the Indian Institute of Technology Madras to cooperate on AI-based manufacturing technologies for smart shipyards. A $7.3 billion steel joint venture was signed between POSCO and JSW Group.
Several key initiatives have been launched to bolster the bilateral economic and strategic partnership. For these initiatives to produce tangible results and remain sustainable, officials and stakeholders from both countries must meet regularly, especially when urgent issues arise. The same spirit should apply to the Korea-India Foreign Ministers' Meeting, the 2+2 Vice-Ministerial Meeting of Foreign Affairs and Defense, and the National Security Councils' meeting, all of which have been intermittent.
Emerging economies represent another vital frontier for Korea-India cooperation. Having both achieved successful digital transitions and advancements in public health, Korea and India are uniquely positioned to jointly provide the technologies and resources these economies need to thrive.
Beyond the economic and strategic partnership, cultural and people-to-people exchanges are crucial to moving the Korea-India relations forward. The Mumbai Korea Center will be a new hub for K-pop and Bollywood to meet, further enriching these exchanges.
Source: Korea Times News
