"Targeting India, the World’s Fifth-Largest Economy"... Ministry of Industry Holds Expert Meeting on Supply Chain Cooperation

Expanding Production Base Cooperation Beyond Shipbuilding and Steel
Experts Recommend "Exclusive Industrial Complexes for Korean Companies"

On the morning of the 11th, at the Dalgaebi Conference House in Jung-gu, Seoul, the 'Expert Meeting for Expanding Korea-India Economic Cooperation' was held, where Kim Jung-kwan, Minister of Trade, Industry and Energy, was listening to the participants. Ministry of Trade, Industry and Energy.

In order to expand industrial and supply chain cooperation with India, which has emerged as the world’s fifth-largest economy, the government and experts have come together for discussions.

The Ministry of Trade, Industry and Energy announced on May 11 that it held an "Experts Meeting on Expanding Korea-India Economic Cooperation," presided over by Minister Kim Jung-gwan, where participants discussed the implementation of outcomes from recent summit diplomacy and mid- to long-term cooperation initiatives.

This meeting was convened to review follow-up measures for the economic agreements reached during President Lee’s state visit to India in April, and to explore ways to expand cooperation in the fields of industry, trade, and supply chains.

Minister Kim assessed, “On the occasion of this summit, both countries agreed to establish the first-ever ministerial-level industrial and resource cooperation platform, the 'Korea-India Industrial Cooperation Committee,' and achieved results by signing multiple memoranda of understanding (MOUs) for investment and cooperation in high-demand sectors such as shipbuilding and steel.”

He emphasized, “The current level of Korea-India economic and industrial cooperation is still insufficient compared to the potential and expectations of both countries. Effective policy proposals based on field experience and research outcomes are needed.”

The meeting was attended by experts from major organizations, including the Korea Institute for International Economic Policy (KIEP), the Korea Institute for Industrial Economics and Trade (KIET), Korea Trade-Investment Promotion Agency (KOTRA), Korea International Trade Association, and Korea Industrial Complex Corporation. The participants discussed topics such as: the establishment of dedicated industrial complexes for Korean companies in India; analysis of major countries’ cooperation strategies with India; analysis and response to the structure of India’s trade deficit with Korea; and strategies for expanding cooperation in promising industries.

The experts evaluated that, with a population of approximately 1.43 billion and a GDP exceeding 4 trillion dollars, India is emerging as both a key production base and a promising market amid the global supply chain restructuring.

However, they also pointed out that, due to complex regulations and a lack of infrastructure, the Indian market still presents high entry barriers for small and medium-sized enterprises. As a result, they suggested that establishing exclusive industrial complexes for Korean companies would help reduce regulatory and logistics burdens and enhance clustering effects among companies.

Additionally, the experts analyzed that the supply chain structure for Korean companies in India—centered on importing intermediate goods, local processing, and domestic sales—has been widening India’s trade deficit with Korea. They recommended reorganizing the supply chain structure by fostering Indian production bases for promising sectors as global manufacturing and export hubs, while simultaneously pursuing localization strategies for intermediate goods.

The Ministry of Trade, Industry and Energy plans to incorporate the opinions raised at this meeting into policy, thereby enhancing the effectiveness of Korea-India industrial cooperation and strengthening collaboration with relevant ministries and related organizations so that the outcomes of summit diplomacy can be realized as soon as possible.

This content was produced with the assistance of AI translation services.