Union Minister of Commerce and Industry Piyush Goyal announced that India will establish a dedicated Korea enclave to attract more South Korean companies and investments into the country. The announcement was made during the India-Korea Business Forum.
The proposed enclave will be a large industrial township with plug-and-play infrastructure, making it easier for Korean companies to set up operations in India. The move is aimed at helping businesses quickly tap into India’s growing domestic demand while also benefiting from the country’s expanding global trade access through multiple free trade agreements.
High-Level Talks Between India and South Korea
The development comes alongside the visit of Lee Jae Myung to New Delhi. During discussions with Narendra Modi, both leaders focused on strengthening economic ties and enhancing bilateral cooperation.
India and South Korea have set an ambitious target to nearly double their annual trade to $50 billion by 2030. They also agreed to upgrade their existing Comprehensive Economic Partnership Agreement, which has been in force since 2010.
Multiple Agreements Across Key Sectors
A dedicated industrial cooperation framework and a steel supply chain agreement were also finalised, highlighting a deeper push toward manufacturing and infrastructure collaboration. The talks resulted in the signing of 15 agreements covering a wide range of sectors. These include:
- Energy and critical minerals
- Defence cooperation
- Shipbuilding and maritime logistics
- Semiconductors and industrial supply chains
Focus on Strategic and Global Cooperation
Both countries also launched new platforms to strengthen long-term cooperation. These include an Economic Security Dialogue and a foreign minister-level framework to discuss areas such as climate change, maritime cooperation, and developments in the Arctic region.
The leaders also exchanged views on global issues, including tensions in West Asia, and reaffirmed their commitment to a peaceful and stable Indo-Pacific region.
Strengthening Financial and Business Ties
To support growing economic engagement, India and South Korea have launched the India-Korea Financial Forum to improve financial flows and investment opportunities. An Industrial Cooperation Committee has also been set up to facilitate closer collaboration between businesses from both countries.
Prime Minister Modi emphasised that in a time of global uncertainty, the partnership between India and South Korea sends a strong message of peace, stability, and inclusive growth.
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