Strengthening Ties: The Evolving India-South Korea Partnership in Trade, Culture, and Strategy

India and South Korea, marking over five decades of diplomatic relations since 1973, have cultivated a multifaceted partnership encompassing economic collaboration, cultural exchanges, and strategic cooperation.
Economic Collaboration
The economic ties between the two nations have strengthened significantly. In 2009, they signed the Comprehensive Economic Partnership Agreement (CEPA) to reduce trade barriers and promote bilateral commerce. By 2013, trade volumes reached $17.6 billion, with South Korea becoming India’s fifth-largest investment source.
Recent developments include:
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Steel Industry: In October 2024, India’s JSW Steel and South Korea’s POSCO agreed to establish an integrated steel plant with an initial capacity of 5 million metric tons annually, also exploring collaborations in battery materials and renewable energy.
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Electric Vehicles: By December 2024, LG Energy Solution and India’s JSW Energy discussed a $1.5 billion joint venture to produce batteries for electric vehicles and renewable energy storage, aiming for a 10-gigawatt-hour capacity plant operational by late 2026.
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Nickel Sulphate Trade: In September 2024, Vedanta urged India to renegotiate trade agreements with South Korea and Japan to eliminate import duties on nickel sulphate, a crucial component for electric vehicle batteries.
Cultural and People-to-People Exchanges
Cultural ties have deep historical roots, with exchanges dating back centuries. In 2018, South Korean First Lady Kim Jung-sook inaugurated the Queen Heo Hwang-ok memorial in Ayodhya, commemorating the legendary Indian princess who married a Korean king in 48 CE.
The popularity of Korean culture in India has surged, with K-pop, K-dramas, and cuisine gaining widespread appreciation. Conversely, Indian yoga, cuisine, and festivals have found a receptive audience in South Korea, fostering mutual cultural enrichment.
Strategic Partnership
Elevated to a “Special Strategic Partnership” in 2015, the bilateral relationship encompasses defense and security cooperation. Both nations participate in dialogues and joint military exercises, contributing to regional stability. In March 2024, discussions emphasized the importance of India-South Korea collaboration for Indo-Pacific peace. Wikipedia
Challenges and Opportunities
Despite robust ties, challenges persist. In February 2025, Kia Motors contested a $14 million tax demand from Indian authorities over alleged misuse of trade treaty exemptions, highlighting the need for clear regulatory frameworks to prevent trade disputes.
Nonetheless, the trajectory of India-South Korea relations remains positive, with ongoing efforts to deepen economic integration, cultural understanding, and strategic cooperation, paving the way for a more interconnected and prosperous future.