Economic Relations and Investments
In 2021, India received a recorded US$ 218 million investment from Korea. Korea’s total FDI to India during April 2000-March 2023 was valued at US$ 5.46 billion. Investments from India to Korea are to the tune of pprox.. US$ 3 billion led by Ssangyong, Tata Daewoo, and Novelis. Hyundai Motor Group, Samsung Electronics and LG Group have been the leader among the Korean companies that have invested in India.
Indian companies like Mahindra and Mahindra, Tata Motors, and banks like State Bank of India and Bank of Baroda have large investments in South Korea.
To improve bilateral economic relations, India and South Korea are seeking to expand a Comprehensive Economic Partnership Agreement (CEPA), with an ambition to increase bilateral trade to US$ 50 billion before 2030.
India and ROK launched an initiative ‘Korea Plus’, as proposed by Prime Minister Mr. Narendra Modi in June 2016 in India to promote and facilitate Korean Investments in India. A Korea India SME and Start-up Centre was launched in September 2019.
India and South Korea signed an arrangement on November 30, 2022, regarding the Economic Development Cooperation Fund loan of over US$ 1,900 million (245 billion Korean Won) for the establishment of an Intelligent Transport System on the Nagpur-Mumbai Super Communication Expressway Project in Delhi. The project's objective is to enhance traffic management efficiency by establishing the Intelligent Traffic Management System.