As the worldwide economic system undergoes disruption as a result of Trump administration’s latest tariffs, main export-led economies like South Korea face an urgent need to diversify by tapping into untapped commerce alternatives with rising economies like India. In a latest effort to highlight and strengthen this partnership, the Embassy of India in Seoul, along with the Korea Institute for Worldwide Financial Coverage (KIEP), hosted the “Korea-India Financial Partnership Discussion board: Shaping the Way forward for the Indo-Pacific.” Attended by diplomats, enterprise leaders, students and enterprise consultants, the discussion board was organized to evaluate the achievements of India-South Korea commerce relations and discover methods to advance financial cooperation between two nations.
The discussion board addressed a number of themes such because the rising geopolitical significance of the Indo-Pacific; the achievements and persisting challenges in bilateral commerce and funding; and the identification of sectors which have excessive potential for future cooperation. Indian Ambassador to South Korea Amit Kumar pointed to rising Korean investments and enterprise pursuits in India whereas additionally highlighting better alternatives within the sectors equivalent to shipbuilding, inexperienced hydrogen, and EV applied sciences. KIEP President Siwook Lee emphasised the necessity for essential engagement, citing the Indo-Pacific’s rising significance and vulnerability.
Varied enterprise leaders from main South Korean conglomerates equivalent to Hyundai and LG shared their success tales in India, highlighting the popularity their model names have earned amongst Indian customers. In the meantime, startups like Steadiness Hero shared how they’ve scaled their companies by concentrating on the massive market of Indian children.
It was broadly accepted that whereas ties have deepened, the actual scope for collaboration in financial cooperation is yet to be fully realized.
India has not solely emerged because the quickest rising main economic system, however it’s more and more taking a extra outstanding position on the worldwide stage. India’s geopolitical significance within the Indo-Pacific and its strategic autonomy, mixed with a democratic authorized system, permits it to draw strategic, financial and technological partnerships, positioning it as a key participant in international provide chains within the foreseeable future. Another vital components from an financial standpoint are India’s demographic dividend, large market, rising center class (resulting in sturdy and steady home demand), rising buying energy parity, steady authorities, ongoing infrastructural growth, digital transformation, and tech savvy labor drive, making it enticing for overseas investments. The cherry on the highest is the push for “Make in India,” which welcomes and incentivizes overseas corporations to arrange home manufacturing, infrastructure, and digital innovation.
Alternatively, South Korea brings to the desk experience in superior manufacturing, heavy electrical equipment, expertise in establishing international provide chains and capital intensive applied sciences. South Korea has the world’s largest shipbuilding trade, and is a prime producer of semiconductor and digital merchandise. Its protection exports have additionally skilled substantial development, together with to India. Throughout his speech within the discussion board, Kumar highlighted the success of Korean K9 howitzers in India, stating that “the second order of 100 such models will assist catalyze additional protection collaborations.”
Bilateral commerce between India and South Korea has reached approximately $25 billion, reflecting rising engagement between the 2 economies. Main Korean corporations equivalent to Samsung, Hyundai, LG, Kia, and POSCO have already established a robust roots within the Indian market. Samsung runs one in every of its largest cell phone manufacturing amenities globally in Noida, whereas Hyundai has made India a key export hub for its automobiles. Authorities initiatives just like the 2009 Complete Financial Partnership Settlement (CEPA) and Korea Plus Desk have additional boosted Korean funding in India. South Korea’s latest push to cooperate with India’s area company can also be seen as an essential step in deepening the connection within the area sector as properly.
Nonetheless, regardless of these developments, the complete realization of alternatives stays largely untapped, particularly contemplating the Trump 2.0 tariffs and the necessity for diversification of South Korea’s export markets. There’s a excessive potential for deeper commerce and funding cooperation between the 2 nations than what has been achieved to date. Professor Sandip Kumar Mishra of Jawaharlal Nehru College, India pointed that there’s an pressing have to “stroll the discuss” – emphasizing the significance of changing good intentions into action-oriented progress.
India and South Korea’s complementary wants – New Delhi’s demand for high-tech funding and infrastructural growth alongside Seoul’s pursuit of market diversification – underline a major convergence that locations them as pure companions in an more and more risky international economic system. With a purpose to notice the complete potential of their financial relationship, each India and South Korea have to pursue extra proactive and centered coverage methods.
Seoul must look past its long-standing preoccupation with the USA and China and develop a dedicated India technique that pulls on the dimensions and vitality of the Indian economic system. Whereas Korean corporations have been fairly profitable in shopper electronics and shopper items, shipbuilding, protection, and infrastructure are sectors of untapped potential, the place South Korea’s strengths can instantly tackle India’s developmental wants. Whereas going up in opposition to entrenched gamers like Japan, South Korea can step up funding in transport infrastructure and change into a reputable protection companion proactively, gaining from India’s initiatives to diversify away from conventional suppliers like Russia and the USA.
On the identical time, New Delhi should extra strongly spotlight South Korea’s energy in high-tech manufacturing, expertise, and protection exports, and justify insurance policies to draw Korean capital and expertise. Institutional mechanisms equivalent to common high-level financial summits, sector-specific consultations with particular targets, and intensified CEPA negotiations must be given prime precedence. As India continues to be the one of many world’s largest arms importers and South Korea turns into a severe protection exporter, this complementarity – if mixed with political will – can type the idea of a stronger, extra enduring partnership.
In a time of world uncertainty and re-aligning alliances, India and South Korea each have the possibility and the crucial to construct a forward-looking financial relationship that addresses the Indo-Pacific’s strategic imperatives.
