As technology gains prominence in geopolitical affairs, the partnership between Korea and India is evolving. Beyond cultural and economic ties, the two nations are expected to strengthen strategic alliances in advanced industries including nuclear energy, shipbuilding and artificial intelligence.
India's surging energy demand, combined with its commitment to reducing carbon emissions, presents opportunities for Korea's advanced nuclear companies. The two countries can collaborate on nuclear safety, waste management and cutting-edge reactor design. India plans to expand its nuclear capacity from 22GW to 100GW by 2047, viewing nuclear power as a crucial energy source to achieve its net-zero goal by 2070.
Korea has demonstrated its ability to execute large nuclear projects at low cost, as evidenced by its work on the Barakah Nuclear Power Plant in the United Arab Emirates and its contract to build reactors in the Czech Republic. Small modular reactors, nuclear safety and fuel cycle management are areas where India and Korea can cooperate. India's new Shanti Bill was designed to ease liability concerns for foreign investors in nuclear power plants. The two countries signed a civil nuclear cooperation agreement in 2011 for mutual energy facility development.
Shipbuilding and maritime sectors represent another area for bilateral cooperation. Korea, a leader in shipbuilding, and India, currently building its own capabilities, can form a strong partnership. India's ambitions under the "Make in India" initiative can be significantly enhanced through Korea's sophisticated shipbuilding technology and technical know-how. Korea's shipbuilding industry commands a 40 percent global market share, with HD Hyundai and Hanwha Ocean among the most prominent players. Korea's expertise in high-value vessel construction opens doors for shipbuilding cooperation between the two nations.
In October last year, the Indian government announced an $8 billion investment plan for the shipbuilding sector, setting a goal to become one of the world's top five shipbuilding nations. HD Hyundai's shipbuilding and marine division decided to establish a $4 billion shipyard in Tamil Nadu, southern India, capable of producing 3.5 million to 4 million gross tons annually. India acquired two very large gas carriers from Korea last year for transporting LPG from the Persian Gulf. The Shipping Corporation of India has issued an expression of interest to global shipyards for building eight VLGCs with 88,000 cubic meter capacity. HD Hyundai is negotiating with Cochin Shipyard Limited to establish a $500 million shipbuilding joint venture. India's Ministry of Ports, Shipping and Waterways recently signed an implementation plan with the Korea International Cooperation Agency to train Indian shipbuilding technical personnel.
Given Korea's status as a semiconductor powerhouse, significant cooperation potential exists in AI. India is currently working to establish itself in semiconductor production, having introduced a $10 billion production-linked incentive scheme for semiconductors in late 2021. India's semiconductor market is expected to reach $100 billion by 2030, driven by domestic demand and foreign investment. Combining India's skilled workforce and startup ecosystem with Korea's semiconductor competitiveness could help mitigate global supply chain risks and foster robust AI collaboration.
Korea's Simmtech signed a $150 million contract to build a factory in India. Indian company ASIP and Korea's APACT are establishing a semiconductor plant for mobile phones and electronics in Andhra Pradesh. LG views India as a strategic export base, aiming to develop advanced semiconductors and AI capabilities. Samsung has brought Indian engineers on board for AI and high-performance computing work at its Bangalore research facility.
Collaborative AI initiatives between the two countries are bringing change to millions in India's rural healthcare and urban infrastructure sectors. Korea's expertise in smart cities and digital governance can play an important role. The India-Korea Centre for Research and Innovation, established in 2018, is expected to develop into a focused center for AI advancement. India's digital identity and payment systems, combined with Korea's regulatory framework, provide a solid foundation for balanced data policies. India is building data centers to strengthen its digital infrastructure and establish itself as an AI hub. Google's $15 billion investment in an AI data center in Andhra Pradesh over the next five years represents the largest investment in India. In 2023, Korea's Solis-IDC announced a $2 billion data center plan for India.
The bilateral relationship can evolve beyond mere trade and cultural exchange into a partnership that reaps mutual benefits in energy, shipbuilding and AI. As a Korean proverb says, "If you go together, you go far." The strengthening of strategic partnership between the two nations for the future is highly anticipated.
*Rahul Raj is Assistant Professor of Korean Studies at Jawaharlal Nehru University, India.*
