In the polished halls of Hyderabad House in New Delhi on 20 April 2026, Prime Minister Narendra Modi and South Korean President Lee Jae-myung sat down with captains of industry from both nations for the India-Korea Business Leaders’ Dialogue. The event, part of President Lee’s three-day state visit – the first by a South Korean leader to India in eight years – was more than ceremonial handshakes and photo opportunities. It marked a deliberate push to transform a solid but underperforming economic relationship into a high-tech, supply-chain-resilient alliance fit for an era of global uncertainty.
Bilateral trade currently stands at around $27bn. South Korea enjoys a substantial surplus, exporting far more than it imports. Yet both governments have now set an ambitious target: nearly doubling that figure to $50bn by 2030. To get there, they have agreed to resume and expedite negotiations to upgrade their 2010 Comprehensive Economic Partnership Agreement (CEPA), addressing India’s concerns over market access while giving Korean firms greater footholds in the world’s fastest-growing major economy.
The announcement came alongside a raft of concrete deliverables – 25 outcomes in total, including a Joint Strategic Vision for the India-Republic of Korea Special Strategic Partnership and more than a dozen new memorandums of understanding (MoUs) and frameworks. Taken together, they span trade and investment, critical technologies, green energy, maritime affairs and people-to-people ties. Officials described the package as elevating relations to a “futuristic partnership”.
Central to the economic push is a new Industrial Cooperation Committee and the launch of an India-Korea Financial Forum. A dedicated Korean Industrial Township is planned to smooth the entry of South Korean small and medium-sized enterprises (SMEs) into India. On the technology front, the two sides unveiled an India-Korea Digital Bridge focused on artificial intelligence, semiconductors and information technology – areas where South Korean chaebols such as Samsung, LG and SK Hynix already have significant Indian operations, but where deeper integration is now envisaged.
Steel supply chains received a boost with an MoU on technology and trade cooperation. The reports suggest this includes a major $7.3bn project between South Korea’s POSCO and India’s JSW Steel. Shipbuilding, ports and maritime logistics are another priority, underpinned by a new Comprehensive Framework for Partnership in those sectors. In the green economy, Seoul has joined the International Solar Alliance and New Delhi the Global Green Growth Institute, while fresh agreements cover sustainability, climate action and cooperation under Article 6.2 of the Paris Agreement.
An Economic Security Dialogue has also been launched to safeguard critical technologies and supply chains – language that reflects shared concerns over geopolitical disruptions, from the Red Sea to the Taiwan Strait. President Lee, in remarks during the visit, described India and South Korea as each other’s “most important strategic partners” amid global supply-chain instability.
For international observers, the timing is telling. Both countries are middle powers with advanced manufacturing bases and democratic credentials, seeking to diversify away from over-reliance on any single partner. India offers a vast consumer market and a young workforce; South Korea brings capital, cutting-edge technology and expertise in heavy industry and digital infrastructure. “From chips to ships, from talent to technology, and from environment to energy,” Mr Modi told the joint press conference, “we will realise new opportunities for cooperation across all sectors.”
The business dialogue itself brought together heavyweights. On the Korean side were leaders from Samsung, Hyundai, LG, POSCO, HD Hyundai, Naver and Krafton. Indian participants included representatives from the Confederation of Indian Industry and major conglomerates. Discussions emphasised not just big-ticket investments but practical steps: strengthening supply chains, supporting “future-ready sectors” and creating opportunities for young people – a nod to India’s demographic dividend and South Korea’s interest in tapping Gen-Z talent in digital ecosystems.
Beyond economics, the outcomes have a strategic and cultural dimension. The two sides reaffirmed their shared vision of a free, open and inclusive Indo-Pacific. South Korea has joined India’s Indo-Pacific Oceans Initiative. New foreign-ministry dialogues will cover global issues including climate change, the Arctic and maritime affairs. A Distinguished Visitors Programme and a Cultural Exchange Programme for 2026-2030 aim to deepen people-to-people links, building on the popularity of K-pop and Korean dramas in India and Indian cinema and cuisine in South Korea. The years 2028-29 have been designated the Year of India-ROK Friendship.
Defence and security ties, while not the headline focus of the business dialogue, are woven into the broader strategic partnership. Cooperation in shipbuilding and maritime logistics carries clear dual-use potential, and the Economic Security Dialogue explicitly addresses critical technologies. Both nations already collaborate on defence production and have expressed interest in expanding it.
The road ahead is not without hurdles. Upgrading the CEPA will require tough negotiations over tariffs, non-tariff barriers and services. Korean firms have long complained about regulatory complexity in India; Indian exporters want better access to South Korea’s market. Execution will matter more than announcements. Yet the institutional scaffolding now in place – ministerial-level committees, dedicated task forces and regular high-level dialogue – suggests both governments are serious about closing the implementation gap that has sometimes plagued bilateral ties.
For global markets, the implications are significant. A deeper India-South Korea axis could accelerate diversification of semiconductor and battery supply chains, bolster clean-energy transitions and stabilise maritime trade routes. It also sends a quiet but clear signal in an increasingly fragmented world: middle powers with complementary strengths are choosing to bet on each other rather than wait for great-power consensus.
As the business leaders dispersed from Hyderabad House, Mr Modi summed up the day’s mood: “Today, we are laying the foundation for the success stories of the next decade.” If the targets are met and the frameworks deliver, those stories could extend well beyond the two capitals – reshaping parts of the global economic and technological landscape in the process.
