India and South Korea agree to nearly double trade to $50B by 2030

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NEW DELHI (AP) — South Korean President Lee Jae Myung met Indian Prime Minister Narendra Modi in New Delhi on Monday, with both leaders pledging to nearly double bilateral trade to deepen economic and strategic ties.

Modi said India and South Korea aim to increase trade between their countries from about $27 billion to $50 billion by 2030 by strengthening supply chains, improving market access and encouraging greater investment.

“India and South Korea are going to transform their trusted ties into a futuristic partnership,” he said.

Talks between Modi and Lee come as both countries are looking to strengthen ties amid global economic uncertainty and supply chain disruptions triggered by the Iran war.

Lee said the two sides agreed to significantly upgrade economic cooperation, focusing on sectors such as shipbuilding, defense and artificial intelligence. He added that both countries would also expand industrial collaboration and step up trade and investment in advanced manufacturing as well as sensitive areas including critical minerals and nuclear energy.

As part of efforts to strengthen supply chains, Lee said that South Korea plans to increase import of naphtha, a crude-oil derivative, from India to cushion potential disruptions linked to tensions in the Middle East. India accounted for about 8% of South Korea’s naphtha imports last year.

Lee is scheduled to travel to Vietnam after concluding his visit to India.