Indian Prime Minister Narendra Modi is hosting South Korean President Lee Jae Myung this week, with both countries targeting a doubling of bilateral trade to $50 billion by 2030. President Lee arrived in India for a three-day state visit, his first since taking office last year and the first by any South Korean leader in eight years, and held talks with Modi in New Delhi.
During the summit, Modi emphasized economic and strategic objectives, stating the commitment to expand trade ties. Lee reportedly said that South Korea and India will continue to cooperate to ensure stable supply of energy resources and key raw materials, as the two nations seek closer relations amidst geopolitical uncertainties, including fallout from conflicts such as the Iran war.
The leaders discussed enhanced cooperation in bilateral ties, including shared outlooks on the Indo-Pacific and increased collaboration in sectors like shipbuilding, artificial intelligence, and defense. Trade data from the Korea International Trade Association shows South Korea exported $19.2 billion worth of goods and services to India last year, importing $6.4 billion, resulting in a trade surplus of $12.8 billion for Seoul.
At a dinner meeting with the Korean community in New Delhi, Lee acknowledged that the level of economic cooperation between South Korea and India remains very low, but purportedly pledged to expand this space and transform the relationship. He is also scheduled to attend business events with corporate leaders during the trip, highlighting efforts to boost economic engagement.
Lee cited supply chain instability and global economic strains, particularly caused by the fallout of the Iran war, as factors making the two countries increasingly important strategic partners. Recently, amid Middle East chaos and shipping disruptions through the Strait of Hormuz, South Korea turned to India for greater naphtha supplies; India supplied about 8% of South Korea's naphtha imports last year, underscoring growing energy cooperation.
Source: www.dw.com