Modi Promises to Establish Dedicated Korea Desk in Meeting with President Lee... New 'Control Tower' Industrial Cooperation Committee Also Launched

During his state visit to India on April 20, President Lee Jae-myung significantly elevated the institutional framework for economic cooperation between the two countries through a summit with Prime Minister Narendra Modi. As part of the new measures, a dedicated Korea Desk will be established within the Indian Prime Minister's Office to directly address challenges faced by Korean companies entering the Indian market. Additionally, the two nations agreed to launch the Korea-India Industrial Cooperation Committee, the first ministerial-level consultative body in the field of economic cooperation between the countries. By agreeing to resume and accelerate negotiations to improve the long-stalled Korea-India Comprehensive Economic Partnership Agreement (CEPA), the two governments have laid the groundwork for moving their cooperation from declarations to concrete action.

Policy chief Yongbeom Kim is holding a briefing on the luncheon between President Jaemyung Lee and Prime Minister Narendra Modi and the Korea-India business dialogue at the Korean Press Center of a hotel in New Delhi, India, on the 20th (local time). Photo by Yonhap News.

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Policy chief Kim Yongbeom held a briefing at the press center in New Delhi and stated, "During the small-scale meeting held prior to the luncheon, Prime Minister Modi expressed a strong commitment to enhancing economic cooperation between the two nations." He added, "Fully acknowledging concerns about the difficulties faced by our small and medium-sized enterprises in India-specifically issues of rationality and predictability-Prime Minister Modi said the Indian Prime Minister’s Office would act as a control tower and establish a dedicated Korea Desk."

Furthermore, Prime Minister Modi proposed that the Korean side also set up a dedicated task force for economic cooperation with India, to which President Lee responded positively. Modi also mentioned plans to invite Korean business leaders to India again in the near future to hear their concerns directly and seek solutions.

The two countries also agreed to establish a permanent industrial cooperation body on the occasion of the summit. They adopted a joint statement on energy and resource security cooperation as an annex, and decided to launch the Korea-India Industrial Cooperation Committee, the first ministerial-level consultative body in the field of economic cooperation. This committee is expected to serve as a broad platform to address not only business challenges faced by companies but also cooperation in key sectors such as critical minerals, shipbuilding, nuclear power, electricity, and clean energy. Kim explained, "It will serve as a control tower covering all sectors, including shipbuilding and steel."

In the area of trade, the two governments agreed to restart the CEPA improvement negotiations. Through a joint declaration, they agreed to resume and accelerate negotiations with the goal of reaching an early conclusion. A separate ministerial-level joint declaration was also issued, with both sides reaching a consensus on the timing of the next (12th) round of improvement negotiations and the target date for reaching an agreement. At the working-level talks scheduled for May, discussions will cover not only traditional trade issues such as goods, services, and rules of origin, but also new trade agendas including supply chain cooperation, public-private partnerships, and digital regulations.

The framework for cooperation in advanced technology has also been expanded. The two countries signed the Digital Bridge Framework to enable more concrete and practical collaboration in fields such as artificial intelligence (AI), semiconductors, and data governance. Kim expressed expectations that this will further activate exchanges and cooperation with Indian companies, which have the world’s second-largest pool of IT talent. During the small-scale meeting, Prime Minister Modi cited shipbuilding, AI, semiconductors, and clean energy as key areas for the next decade, stating his hope that "India’s scale and Korea’s speed will be combined," according to Kim.

On this day, about 200 people from 54 domestic companies and organizations joined the economic delegation. Notably, Prime Minister Modi personally invited executives from 11 major companies, including Samsung Electronics, Hyundai Motor, LG, and POSCO, to the luncheon he hosted. Originally, a separate business dialogue had been scheduled just before the business forum, but at Modi’s suggestion, the luncheon was held jointly with the heads of state and business leaders, creating a rare stage for economic diplomacy during a state visit.

President Lee Jae-myung and Indian Prime Minister Narendra Modi are preparing for an expanded summit meeting at the Guest House in New Delhi on the 20th (local time). Yonhap News

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Business leaders emphasized the need to expand cooperation beyond the automotive and electronics sectors to include basic industries such as shipbuilding and steel, convergence of AI and IT with manufacturing, and new industries such as consumer goods and culture. Samsung announced plans to strengthen local production of advanced products and innovative research and development (R&D) in India, while Hyundai Motor revealed plans to complete a comprehensive R&D center for emerging markets by the end of 2028. In addition, POSCO unveiled plans to jointly construct an integrated steel mill with India’s JSW Group, targeting an annual production capacity of 6 million tons of high-performance steel. HD Hyundai reported that it is considering investment in building a mid-sized shipyard, Hyosung expressed its intention to cooperate on power grid and pump factories, and Krafton shared its commitment to supporting the gaming production ecosystem.

At the event, Chairman Lee Jaeyong stated, "We entered the Indian market with the attitude of becoming a local company," and added, "Going forward, we will carry out advanced product manufacturing and innovative R&D locally in India." According to Kim, Chairman Euisun Chung of Hyundai Motor Group said, "We aim to complete a comprehensive R&D center in India by the end of 2028," and invited Prime Minister Modi to the completion ceremony of the third local plant this month.

At the luncheon, President Lee thanked Prime Minister Modi for the state invitation and warm hospitality, drawing a parallel between his own experience as a "boy worker" and Modi’s background as a "Chaiwala" (a vendor selling Indian tea), to emphasize the closeness between the two countries. He also noted that the scope of economic cooperation now extends not only to basic industries such as steel and shipbuilding but also to consumer goods and cultural content, adding that the government will actively support companies so that their efforts lead to tangible results.

Meanwhile, President Lee’s visit to India marks the first presidential visit in eight years and is the earliest such visit among all previous administrations. The government noted that although last year’s trade volume with India, Korea’s 10th largest trading partner, was USD 25.6 billion, this remains only about one-tenth of the trade volume with ASEAN countries of similar economic size. The government has therefore set out a vision to increase trade to USD 50 billion by 2030. Kim emphasized, "This summit will elevate bilateral relations to a new level and serve as a catalyst for Korea to fully leverage the Indian market as a new growth engine for the Korean economy."

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