New Delhi [India], 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.
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