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India-South Korea Trade Stalls at $28B as Both Nations Target $50B by 2030

India-South Korea bilateral trade has stagnated at $25-28 billion between FY2022 and FY2025, falling short of the $50 billion target by 2030. India's goods exports to South Korea declined from $8.1 billion in FY2022 to $5.8 billion in FY2025, while imports remained stable around $21 billion. The trade deficit expanded more than 1.6 times, highlighting the need for export diversification and deeper value chain integration. Prime Minister Narendra Modi emphasized shared democratic values during the first South Korean presidential visit to India in eight years.

Key Points: India-South Korea Trade Stagnates at $28B Amid $50B Goal

  • Bilateral trade stuck at $25-28 billion between FY2022-2025
  • India's exports to South Korea fell 11% CAGR to $5.8 billion in FY2025
  • Trade deficit widened over 1.6 times in same period
  • $50 billion target requires export diversification and market access
2 min read

India-South Korea trade remains range-bound at USD 25-28 billion amid push towards USD 50 billion target: Report

India-South Korea trade remains range-bound at $25-28B despite $50B target. PM Modi highlights shared values as report calls for export diversification.

"Democratic values, a market economy, and respect for the rule of law are deeply embedded in the DNA of both our nations. - Prime Minister Narendra Modi"

New Delhi, April 23

India-South Korea bilateral trade has remained range-bound at USD 25-28 billion between FY2022 and FY2025, even as both countries target USD 50 billion by 2030, according to an analysis by Rubix Data Sciences.The report, India and South Korea: Trade Scenario, stated that the first South Korean presidential visit to India in eight years signals a shift towards a more structured, investment-led partnership across semiconductors, clean energy, shipbuilding, defence and advanced manufacturing.

"This visit of the President of Korea to India, after a gap of eight years, is of great significance. Democratic values, a market economy, and respect for the rule of law are deeply embedded in the DNA of both our nations. We also share a common outlook on the Indo-Pacific region," said Prime Minister Narendra Modi.

However, the analysis noted that structural challenges remain, with India's goods trade deficit with South Korea widening, highlighting the need for export diversification, deeper value chain integration and improved market access to realise the partnership potential.

The report said India's goods exports to South Korea declined from USD 8.1 billion in FY2022 to USD 5.8 billion in FY2025, reflecting an 11 per cent CAGR contraction, while imports remained stable at around USD 21 billion.This imbalance led to a sharp rise in the trade deficit, which expanded more than 1.6 times over the same period.It added that while engagement between the two economies has deepened at a policy level, trade flows have yet to reflect this momentum, pointing to the need for more targeted interventions.According to the report, India's import basket is shifting towards higher-value, technology-intensive goods, with electrical integrated circuits increasing their share from 7 per cent to 15 per cent.

On the export side, India continues to rely on commodity and intermediate goods such as petroleum products and metals, though aerospace components show early signs of diversification.The report said achieving the USD 50 billion trade target will depend on export diversification, stronger manufacturing linkages, improved market access and reduction of non-tariff barriers, along with increased bilateral investments. It added that India-South Korea economic ties are well-positioned for expansion, provided structural imbalances are addressed.

- ANI

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Reader Comments

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Priya S
Interesting that the report points to aerospace components as a bright spot. We should double down on that – Indian engineering is world-class. But honestly, Korea is not going to hand over their crown jewels easily. Modi's visit was good for optics, but we need real action on the ground, like reducing tariffs and easing visa issues for Korean investors. 🤔
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Michael C
From a Western perspective, it's fascinating to see India's ambition here. But the trade deficit widening 1.6x is a red flag. I wonder if India can really compete with South Korea in high-tech without massive R&D investment. Perhaps focusing on services instead of goods would be smarter? India's IT sector is still unmatched. 💻
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Kavya N
The issue is not just about trade numbers – it's about value addition. When we export crude oil and import finished electronics, our value capture is minimal. We need to move up the value chain, and that requires policy stability and ease of doing business. Otherwise, Korean companies will just use India as a market, not a manufacturing hub. 😤
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James A
Respectful criticism here: India's non-tariff barriers are often cited as a problem by foreign investors. If we want to hit USD 50 billion with Korea, we need to streamline regulations, especially in sectors like defence and clean energy where Korea is strong. Modi's Indo-Pacific vision is good, but trade follows investment, and investment follows trust. 🤝
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Siddharth J
Let's not miss the big picture! Even if trade is range-bound, the fact that Korea sees

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