This was the perfect backdrop for South Korean President Lee Jae-Myung’s three-day visit to India from April 19, with an emphasis on "Global South" diplomacy. The two countries have now entered a phase of manufacturing that can make India a maritime powerhouse. 

During the visit, both sides agreed that India’s maritime ambitions under the Maritime Amrit Kaal 2047 Vision have created considerable opportunities for long-term collaboration with South Korea. Cooperation in shipbuilding, port development, and maritime logistics could propel the Special Strategic Partnership towards practical benefits and economic value for both nations.

Shipbuilding Industry

Both India and South Korea have rich maritime traditions and share extensive common interests and complementary strengths in maritime industries. With India’s rapid economic growth and the internationalisation of its economy, the maritime sector has become extremely critical to India’s security and prosperity. India announced a plan for the acquisition of 400 vessels by public agencies in India, with a total value of ₹2.2 lakh crore (US$25 billion) during the India Maritime Week 2025.

Leading South Korean shipbuilders have been invited as technical and strategic anchors for greenfield shipbuilding clusters through active involvement in design, production engineering, advanced manufacturing, quality, and safety frameworks and operations. The Indian shipbuilding industry would generate an additional demand for components used in shipbuilding and ancillary industries, providing specialised Korean shipbuilding component manufacturers an attractive market to expand their business through local production. 

India’s rapidly growing seafarer pool allows Korean shipowners to recruit manpower to support Korean-flag operations.

Industrial Collaboration

India and South Korea, two nations with strong and complementary digital capabilities, can contribute to industries and technologies. A framework for the India-Korea Digital Bridge, focusing on artificial intelligence (AI), data governance, and digital businesses, while also recognising the role of enabling technologies, including semiconductors, in supporting digital innovation and cooperation, has also been launched. 

The South Korean semiconductor industry in India can leverage government incentives and the growing market. There is a desire to deepen India-Korea partnership across AI verticals, including for research and talent nurturing.

Similarly, collaboration in defence industries, by reinvigorating the 2020 Memorandum of Understanding (MoU) on the “Roadmap to Defence Industry Cooperation”, must be the focus. 

The two nations have a record of successful joint ventures of K9-Vajra howitzers, with the second batch of production in progress. There are efforts to replicate the model in other futuristic defence technologies and platforms, such as the Self-Propelled Air Defence Gun-Missile Systems.  It was decided to launch a “Korea-India Defence Accelerator” (KIND-X) innovation platform to connect businesses, incubators, investors, defence startups, and universities from both sides. 

Space is another promising frontier of national development, with efforts for a Joint Working Group between the Indian Space Research Organisation (ISRO) and the Korea AeroSpace Administration (KASA). The two sides are exploring opportunities for mutual support for each other's satellite navigation systems. 

New Delhi and Seoul, owing to supply chain constraints, have also decided to maintain a stable, secure, and reliable supply of energy resources for each other, including efforts by both countries to maintain open trade in naphtha and other petroleum products, along with cooperation in the entire energy value chain. 

Comprehensive Economic Partnership Agreement

India and South Korea are also working towards revamping the Comprehensive Economic Partnership Agreement (CEPA) to boost bilateral trade, with discussions on expanding cooperation in green energy and digital trade.

India’s fintech revolution, illustrated by the Unified Payments Interface (UPI) and regulatory innovations, has created opportunities for trans-border collaboration.  

An MoU has also been signed between the National Payments Corporation of India Limited (NPCIL) and the Korea Financial Telecommunications and Clearings Institute (KFTC) for the phased integration of the digital payment systems to enhance interoperability and strengthen the economic and people-to-people ties. An MoU was also inked between the International Financial Services Centres Authority (IFSCA) of India and the Financial Services Commission (FSC)/Financial Supervisory Service (FSS) of South Korea for the supervision of cross-border financial products. 

South Korea’s financial entities are important players in India’s economic development, focusing their investments on infrastructure, manufacturing, and the growing financial market. The Korea Development Bank has also been interested in opening an office in India. 

Prime Minister Narendra Modi has also invited the National Pension Service of South Korea to explore the possibility of opening its office in India.  

The visit of the South Korean President could usher in a new chapter in industrial partnership, giving India the much-needed technology in sectors such as the ship-building industry. South Korea, akin to Japan, has a business-like approach that focuses on economic diplomacy. 

(The writer is a commentator on geopolitics. Views expressed are personal.)