South Korea’s Exports to India Surge 30.8% Through August; Semiconductor Exports Jump 177.5%

【NEW DELHI, India—Pragya Awasathi, Correspondent】South Korea’s exports to India have continued to rise sharply, bringing the two countries closer to their goal of expanding bilateral trade to $50 billion (67.3 trillion won) by 2030.
According to statistics released by the Korea Trade-Investment Promotion Agency (KOTRA) on the 7th, South Korea’s exports to India totaled $16.8 billion (22.6128 trillion won) from January through August this year, up 30.8% from the same period a year earlier. Imports also rose 16.2% to $5.03 billion (approximately 6.7703 trillion won), pushing total bilateral trade above $21.8 billion (29.3428 trillion won).
During President Lee Jae Myung’s state visit to India in April, the leaders of the two countries agreed to increase bilateral trade to $50 billion by 2030. As exports continued to grow, South Korea’s exports to India reached $2.34 billion (approximately 3.1496 trillion won) in August, a 47.3% year-on-year surge and the highest figure ever recorded for August. India’s industrial policy to promote manufacturing is driving the increase. Under its Make in India initiative, India is pursuing a strategy to become a global production hub while accelerating the expansion of next-generation industrial infrastructure, including artificial intelligence (AI) and data centers. As a result, KOTRA analyzed, South Korean semiconductor, materials, parts and equipment companies are rapidly entering India’s local supply chains.
Semiconductor exports showed particularly strong growth by product category. Through mid-August, semiconductor exports totaled $690 million (approximately 928.9 billion won), soaring 177.5% from a year earlier to become the country’s leading export item. Exports of petrochemical products rose 31.4% to $320 million (approximately 430.7 billion won), while general machinery exports increased 16.5% to $150 million (approximately 201.9 billion won). The increases reflected growing demand for basic production materials and industrial equipment as India expands its manufacturing sector and upgrades its facilities. KOTRA forecast that demand for batteries, advanced materials, and steel and metal products will also continue to rise as infrastructure expansion and supply-chain development proceed. 
Exports of South Korean consumer goods also stood out. From January through July this year, exports of noodle products, including instant noodles, increased 54.7% from a year earlier. Exports of beauty products, led by cosmetics, rose 19.2%. Analysts say the influence of K-food and K-beauty is expanding in the Indian market. Building on this export growth, KOTRA plans to step up efforts to achieve the $50 billion bilateral trade target by 2030. In particular, following the April summit, the agency plans to expand an economic cooperation framework encompassing supply chains and industrial cooperation, using the renewed momentum in negotiations to improve the Korea-India Comprehensive Economic Partnership Agreement (CEPA) as a catalyst. 

[email protected] Pragya Awasathi, Correspondent Reporter