- Korea is the 6th largest producer of vehicles while India is the 4th largest vehicle market in the world.
- Hyundai is the 2nd largest manufacturer and leading exporter of passenger cars in India with exports to more than 87 countries. The company plans to manufacture electric vehicles in India and launch its first model by 2019.
- Kia Motors, South Korea’s 2nd largest automobile manufacturer is in the process of investing more than USD 1 bn in its new plant in Andhra Pradesh.
3rd India to be 3rd largest automotive market by volume by 2026
5th Korea is the 5th largest auto-parts industry
40% India’s share of global R&D in the sector
- The Korean semiconductor industry ranks 2nd in the world, with 16.2% share in the global market.
- Korea’s Samsung Electronics is the world’s biggest chipmaker and ranks 2nd in the global semiconductors market, with 11.6% share.
- India’s electronics market is projected to grow at a CAGR of 17% during 2014-20, to reach USD 400 bn by 2025.
- R&D centres of Samsung and L.G. in Bengaluru are their largest outside of Korea.
- Samsung, India’s biggest mobile and TV brand, aims to generate revenue of USD 10 bn in India in 2018. The company plans to invest USD 756 mn in a manufacturing facility in Noida, to double their production capacity for mobile phones and refrigerators.
$ 122 bn Production volume recorded by Korean electronics industry in 2017
$ 400 bn Value of Indian electronics market by 2025
- Korea is one of the leading producers of technical textiles in the world.
- India is the largest producer of Cotton and Jute and 2nd largest exporter of textiles and apparels.
- Hyosung, Korea’s leading chemical and technological textile company and the largest global spandex producer, plans to invest USD 100 mn for a new manufacturing plant in Maharashtra, with the object of increasing its share in the Indian spandex market to 70%.
$ 223 bn Value of Indian textile exports by 2021
85% Level of technology usage in Korean textile industry by 2020
$ 300 bn Indian textile exports by 2024
- Korea is the 5th largest specialty chemicals industry globally, with four companies featuring in the world's top 50 rankings by the American Chemical Society.
- India is the 3rd largest producer of chemicals in Asia, with an estimated size of the sector at USD 139 bn.
- South Korean chemicals firm Songwon has opened a pilot plant in Gujarat to produce a wide range of chemicals for a broad spectrum of applications.
3rd India is 3rd largest consumer of polymers in the world
5th Korea 5th largest specialty chemicals industry in the world
$ 403 bn Value of Indian chemical industry by 2025
- Korean food industry is undergoing rapid growth and is expanding investment in emerging markets as well as in R&D. Lotte Group and Nong Shim are the top packaged-food companies with 9.5% and 6.5% global market share, respectively.
- India is world's largest producer of milk, and 2nd largest producer of food grains, fruits and vegetables.
- Korea’s Lotte Group recently acquired Ahmedabad-based Havmor Ice Cream and expects India to contribute 5% to its global revenues by the end of 2020.
$ 33 bn Investment in Indian food processing sector by 2020
127 Identified agro-climatic zones in India
The bilateral consular relations established between India and The Republic of Korea in 1962, were upgraded with Ambassador appointment in 1973. The year 2018 marks 45 years of successful diplomatic ties between the two nations.
Both countries have made great strides in their relations in recent years, spurred by a significant convergence of interests, mutual goodwill and high-level exchanges.
With the visit of Indian PM Narendra Modi to Korea in May 2015, the bilateral relations were upgraded to ‘Special Strategic Partnership’. In the ‘Joint Statement for Special Strategic Partnership’, the Indian Prime Minister and the Korean President agreed to establish a 2+2 consultation mechanism at Secretary/Vice Minister of Foreign Office and Defence Ministry.
Bilateral meeting between PM Modi and President Moon Jae-in on the sidelines of G-20 Summit, held in Hamburg in July 2017, led to discussions on further participation through programmes like ‘Make in India’, ‘Digital India’ and ‘Start-up India’.
The Republic of Korea ranks 16th in FDI inflows to India, investing USD 2.5 bn since 2000. Metallurgy, automobile, electronics, prime movers, machine tools, hospital and diagnostic centers are the sectors that attracted maximum FDI.
Bilateral trade touched USD 18.9 bn in 2018. Imports from Korea were valued at USD 14.9 bn during 2017-18. Auto-components, telecom equipment, iron & steel products, petroleum refined products and mechanical appliances are key areas for imports.
Exports to Korea were valued at USD 3.9 bn during 2017-18. Non-ferrous metals, petroleum and related products, chemicals and textile yarn formed the bulk for exports from India.
Korea and India signed the CEPA free trade agreement in August 2009, which became operational from 1 January 2010. In addition, an Indian Chamber of Commerce in Korea was established in January 2010 to support Korean companies interested in doing business in India.
Korea houses Indian Council for Cultural Relations in Seoul and Busan to promote Indian culture in the country and also to strengthen cultural and educational ties between the two nations. The Council offers regular classes in yoga, dance, Hindi language, musical instruments and cooking.
Sarang, the annual festival of India in Korea was initiated in 2015 to showcase diverse Indian culture and art forms in various parts of Korea.
Several arrangements between Korean and Indian educational institutions continue to promote people-to-people exchanges. Indian institutes like Jawaharlal Nehru University and the Delhi University offer programmes in Korean studies and Korean language courses.
Bilateral Civil Aviation Agreement of 1994 was revised in November 2015 to increase weekly flights between the two countries to 19, starting new operations by Korean Airlines with direct flights to Delhi. India also extended visa-on-arrival facility for Korean tourists from April 2014 to boost travel between the two countries.