South Korean President Lee Pursues $50 Billion Trade Ambition with India in Shipbuilding

South Korean President Lee Jae Myung is in New Delhi for pivotal discussions with Indian Prime Minister Narendra Modi.  

The visit spotlights South Korea's aim to double bilateral trade to $50 billion by 2030, with a keen focus on the shipbuilding sector. 

Strategic Discussions: Shipbuilding at the Forefront 

During his state visit, Lee Jae Myung emphasised the expansion of economic collaboration, aiming to elevate trade with India to $50 billion.  

Central to these discussions is the shipbuilding sector, which aligns with India's job creation agenda and utilises South Korea's industrial prowess.  

The two countries also intend to improve their Comprehensive Economic Partnership Agreement. 

The strategic partnership is further underscored by discussions surrounding the enhancement of supply chains, an element made even more crucial given the global economic instability.  

South Korea sees India as pivotal not just as a market but as a major player in global production and supply chains. 

Focused Expansion in Bilateral Trade 

The current state of trade between the two nations stands at $25.7 billion, with a marked ambition to reach $50 billion over the next few years.  

In light of global supply chain challenges, South Korea recently requested India to boost naphtha supplies to offset potential disruptions. 

India supplied 8% of South Korea's naphtha imports in 2025, highlighting the growing interdependence between the nations. 

Read More: China Records 5% Growth in Q1 Despite Global Uncertainty! 

Defence and AI: Areas of Increased Cooperation 

In addition to shipbuilding, South Korea and India are exploring collaborations in artificial intelligence and defence sectors.  

These initiatives underscore the breadth of potential cooperation areas, reflecting the dynamic relationship between the two countries that extends beyond traditional trade. 

Economic Tensions and Trade Imbalances 

Addressing trade imbalances is also a key agenda item. South Korea recorded a $12.8 billion trade surplus with India last year, fuelled by exports worth $19.2 billion against imports of $6.4 billion.  

Collaborative efforts like enhancing naphtha import quotas could help balance this economic equation more equitably. 

Conclusion 

President Lee’s visit to India signifies a strategic deepening of economic ties, with a clear focus on doubling trade and enhancing cooperation in critical sectors such as shipbuilding, defence, and artificial intelligence. This initiative not only aims to broaden economic exchanges but also seeks to fortify the partnership between these two key players in the global economy. 

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