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Business News Today: Latest Business News, Finance News

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India-Korea economic ties poised to strengthen
2026-04-17 · via Business News Today: Latest Business News, Finance News
Over the years, Korean companies have participated in the unfolding of the Indian growth story — and accelerated alongside it

Over the years, Korean companies have participated in the unfolding of the Indian growth story — and accelerated alongside it | Photo Credit: alexis84

There is a conversation about India and South Korea that has been overdue for three decades and it is not the one about trade volumes, investment flows, or diplomatic communiqués. Those matter, and the numbers are substantial: bilateral trade has crossed $28 billion, while South Korean foreign direct investment into India has reached $6.69 billion over the past three decades. The formal architecture of partnership is real, growing, and consequential.

But impressive figures capture only part of the story. Behind the robust trade statistics and investment flows lies something far more significant: the evolution of this bilateral relationship from a transactional agreement into what may best be described as a “strategic mirror”, a partnership defined not merely by shared interests but by shared world-view, economic ambition, and aligned responses to regional security challenges.

Over the years, Korean companies have participated in the unfolding of the Indian growth story — and accelerated alongside it. From electronics leaders such as Samsung to automotive majors such as Hyundai, and other industrial conglomerates, Korean enterprises have embedded themselves deeply within India’s economic fabric, bringing with them not just investment, but capabilities that have strengthened India’s position in global value chains.

What connects our two nations is something profoundly structural and foundational: the way each country conceives of itself and its role in the world.

Two miracles, one instinct

Both nations have constructed their modern economic identities on three enduring pillars: technological ambition, infrastructure leap, and a tenacious national resolve.

Similar to what Korea did in the latter half of the twentieth century, India is investing heavily in engineering talent, producing hundreds of thousands of graduates annually, scaling manufacturing capabilities across electronics, pharmaceuticals, and advanced components, and positioning itself as a trusted node in global supply chains. This convergence of instinct is now more strategically valuable than any formal agreement. As the architecture of global production and geopolitical alignment shifts under structural pressure, the thinking of both nations must evolve in concert.

Since 2015, the two countries have formally elevated their ties to a Special Strategic Partnership. Both nations manage the daily pressure of tense relationships with nuclear-armed neighbours — a shared security instinct that no formal diplomatic framework fully captures.

In the wake of Covid-19 and the turmoil in West Asia, the world is experiencing its production networks, and this moment presents an extraordinary strategic opportunity. Korea has spent decades constructing the world’s most sophisticated technology manufacturing ecosystem: semiconductors, display technologies, shipbuilding, and advanced electronics, industries built over generations through deliberate policy, sustained education investment, and institutional will.

India is now on the cusp of building something similar. Its semiconductor mission, the electronics Production-Linked Incentive (PLI) scheme, and an engineering talent base being integrated into the world’s most demanding technology supply chains are clear signals that India has decided it will not remain a mere consumer of the world’s high technologies — it intends to become a maker of them.

In an evolving landscape reorganised around trusted technology partnerships, India and Korea are more naturally aligned than almost any other pair of nations. They share democratic values, a commitment to rules-based economic engagement, and complementary capabilities — Korea’s depth in technology and manufacturing on one side and India’s scale in engineering talent and market size on the other — that make genuine co-production not just logical, but strategically necessary.

What this moment demands is a decisive step forward, a dedicated India-Korea Technology Partnership Framework. It must take the form of a structured, institutionally anchored commitment, one that enables sustained co-innovation, co-development, and co-manufacturing in the technologies that will define the next half-century.

India and Korea have already demonstrated what they can achieve independently. The question before the Presidential visit is what they can build together.

The writer is India’s former Ambassador to Uzbekistan and the Republic of Korea

Published on April 17, 2026