India, South Korea Aim For $50b Trade By 2030
Korea to build new shipyard in south, industrial towns for SMEs
The Prime Minister also announced the establishment of Korean industrial townships in India for the entry of Korean SMEs, and the launch of a digital bridge to deepen the partnership in AI, semiconductors, and information technology. Both nations have also decided to strengthen cultural cooperation through films, gaming, and animation, and take steps for an interface between Korean pop music and drama and Bollywood, while enhancing Korean learning in India.
At a special media briefing, the MEA’s Secretary (East) P. Kumaran said the bilateral cooperation in shipbuilding would include joint development, financing, and operation of a greenfield shipyard in southern India, and also a move to build a new dry dock to construct large specialized vessels.
The Ministry of External Affairs Secretary (East) said that two phases of supplies of the K9 Vajra have been completed, while the third phase will involve greater technology transfer. He said India is also looking at other types of South Korean anti-aircraft guns and missile systems, as well as co-development and co-design of new-generation missile systems and procurement of more defense hardware. He said both nations are looking at the development of a "defense accelerator" to support defense start-ups.
On the issue of the upgradation of CEPA, Mr. Kumaran elaborated that India is pushing for a more balanced agreement, as the trade balance from the current agreement is heavily in favor of South Korea. He said the exports from India to South Korea are about $6.5 billion, while South Korean exports to India are about $24.5 billion. India is looking to boost its export of services to South Korea. New Delhi is hoping that there will be a “second wave of investment” by Korean SMEs, even as South Korea is pushing for facilitation of its SME investments and presence in India through effective coordination.
