President Lee: "Cooperation on Key Raw Materials Like Naphtha"... Modi: "Strengthening Supply Chain Collaboration" (Comprehensive)

President Lee Jae-myung, who is on a state visit to India, announced on April 20 (local time) that, on the occasion of his summit meeting with Indian Prime Minister Narendra Modi, the two countries have agreed to establish their first ministerial-level economic cooperation platform, the "Industrial Cooperation Committee." Additionally, they agreed to double bilateral trade volume from the current annual level of 25 billion dollars to 50 billion dollars by 2030. The two leaders also unveiled plans to broaden cooperation beyond existing economic ties, covering strategic industries such as critical minerals, nuclear power, clean energy, artificial intelligence (AI), shipbuilding, and finance.

President Lee Jae-myung is applauding after Prime Minister Narendra Modi's remarks at a joint press conference held at the guesthouse in New Delhi, India, on the 20th (local time). Photo by Yonhap News Agency

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At the Korea-India joint press conference held at Hyderabad House, the official guesthouse of the Indian government, President Lee stated, "We have agreed to advance the framework of economic cooperation between the two countries to create new engines of co-prosperity. We will establish the Industrial Cooperation Committee, the first ministerial-level economic cooperation platform between our two countries, to strengthen cooperation not only in trade and investment, but also in strategic sectors such as critical minerals, nuclear power, and clean energy."

President Lee emphasized, "We agreed that, in an era of uncertainty, Korea and India can become optimal and comprehensive partners for mutual growth and innovation. While further advancing existing economic cooperation, we will expand collaboration in strategic industries, including shipbuilding, finance, AI, defense, and defense industry. We will also further enhance cultural and people-to-people exchanges."

Notably, the two countries also decided to accelerate negotiations to upgrade the Korea-India Comprehensive Economic Partnership Agreement (CEPA). President Lee explained, "We will improve the agreement to fully reflect new trade norms, so that our companies can benefit from a more favorable trade and investment environment and respond in a timely manner to the evolving trade landscape, including supply chains and the green economy."

Responding to recent supply chain instability stemming from the Middle East situation was also included as a cooperation agenda. President Lee stressed the need for joint efforts to ensure energy security, stating, "We will continue to work together to secure stable supplies of energy resources and key raw materials such as naphtha."

In the shipbuilding sector, the two countries agreed to combine the technological expertise of Korean companies with the policy support of the Indian government to expand opportunities in the Indian shipbuilding market. President Lee mentioned support from both central and local governments in India for constructing shipbuilding facilities, guaranteeing demand for ship orders, and providing production subsidies, stating, "We will cooperate to help our companies seek new opportunities in the Indian shipbuilding market."

Indian Prime Minister Narendra Modi is offering a seat during the expanded summit meeting with President Lee Jae-myung at the New Delhi guesthouse on the 20th (local time). Photo by Yonhap News

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Financial cooperation will also be strengthened. Through a memorandum of understanding (MOU) between financial authorities of both countries, Korea and India will lay the groundwork for Korean financial firms to enter India's financial market, which has grown to become the third largest in the world. The two sides agreed to enhance information sharing for eligibility screening and to strengthen cooperation in fintech. In the AI and digital sectors, they will build a foundation for cooperation through the "Digital Bridge Framework." President Lee said, "We plan to establish a foundation for AI and digital cooperation between India, a powerhouse in AI talent, and Korea, which boasts world-class AI infrastructure."

The two leaders also announced measures to expand cultural and people-to-people exchanges. Based on an MOU in the cultural and creative industries, the two countries will establish the Korea Center in Mumbai, India, and expand Korean language and Korean studies programs. Additionally, through an MOU linking electronic payment systems, visitors from both countries will be able to use their home country’s QR payment system while traveling, thereby increasing convenience for mutual visits.

President Lee stated that he and Prime Minister Modi also exchanged views on regional and global affairs. He said, "We shared our perspectives on the recent situation in the Middle East and agreed that restoring stability and peace in the region is extremely important for global security and the economy." He also explained the Korean government’s efforts toward building peace on the Korean Peninsula.

President Lee added, "Based on the achievements of today’s summit, we have adopted a Korea-India Joint Statement. I hope that follow-up measures will be implemented swiftly so that the people of both countries can enjoy tangible benefits." He continued, "I believe this state visit will further strengthen trust and friendship between our two countries and serve as a catalyst for a new leap in comprehensive cooperation."

Earlier, Prime Minister Modi announced that India and South Korea would launch dialogues on economic security as well as cooperation in core technologies and supply chains. He said, "Our two countries share a common vision for the Indo-Pacific region," adding, "Together, we can join hands to achieve mutual prosperity." With regard to the resumption of CEPA upgrade negotiations, Prime Minister Modi stated, "We will do our best to restart negotiations within the year and conclude them swiftly."

Regarding cooperation in the cultural sector, Prime Minister Modi mentioned the love story of Queen Heo Hwang-ok and King Kim Suro, saying, "This is a shared heritage that dates back 2,000 years. Today, K-pop is very popular in India." He added, "I hear there is growing interest in Indian films and culture in Korea, and I was delighted to learn that President Lee is a fan of Indian movies."

Prime Minister Modi also said, "About 100 years ago, the Indian poet Tagore called Korea the 'light of the East.' Korea will play a truly important role in creating a better future."

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