President Lee Jae-myung, who is on a state visit to India, defined the bilateral relationship as "the optimal all-round cooperation partner for fostering mutual growth and innovation in an era of uncertainty" during his summit with Indian Prime Minister Narendra Modi on the 20th (local time). He clearly articulated his vision of nurturing India beyond a mere export market into a future growth axis for Korean industry and a supply chain and production hub. Notably, the summit also discussed establishing a dedicated economic cooperation task force to support Korean companies' advance into India.
Based on the outcome of the summit, the two leaders adopted the "Korea-India Joint Leaders' Statement," which includes advanced economic cooperation, regional peace, and responses to global issues. The stage that embodied this was the Korea-India Business Forum, attended by some 600 business leaders from both countries. Business leaders accompanying the economic delegation—including Samsung Electronics Chairman Lee Jae-yong, Hyundai Motor Group Chairman Chung Euisun, LG Chairman Koo Kwang-mo, POSCO Holdings Chairman Chang In-hwa, and HD Hyundai Chairman Chung Ki-sun—held a series of meetings with Indian business circles and unveiled large-scale investments and joint ventures.
The most notable is POSCO Holdings' massive investment. POSCO Holdings signed a joint venture agreement (JVA) to invest approximately $7.29 billion (about 10.76 trillion won) in a joint venture with JSW Group, India's top steelmaker, to build an integrated steel mill in India. The two companies plan to build a steel mill in Odisha, India, with an annual upstream-downstream integrated production capacity of 6 million tons. This marks POSCO's realization of large-scale local investment about 20 years after it announced its entry into India in 2004.
Hyundai Motor joined hands with Indian motorcycle manufacturer TVS Motor Company to jointly develop three-wheeled electric vehicles. This is interpreted as Hyundai Motor's full-fledged effort to target the local future mobility market, in addition to its existing internal combustion engine-centered production base. Currently, Hyundai Motor produces around 700,000 internal combustion and eco-friendly vehicles annually through its Indian subsidiary (HMI).
HD Hyundai is also accelerating its entry into India's shipbuilding industry. HD Korea Shipbuilding & Offshore Engineering, HD Hyundai's shipbuilding intermediate holding company, signed a memorandum of understanding (MOU) with Sagarmala Finance Corporation in connection with a shipbuilding industry project promoted by the government of Tamil Nadu, India. The MOU formalizes central and local government support measures for building a new shipyard and matters related to consultation on the joint venture (JV) equity structure. This is interpreted as a convergence of Korea's technological prowess as a shipbuilding powerhouse and India's demand to expand production hubs.
Hyosung Heavy Industries and Hyosung Goodsprings also expanded their cooperation in the infrastructure sector. Hyosung Heavy Industries signed an MOU with Adani Infra, which leads large-scale infrastructure projects in India, for technical cooperation on high-voltage direct current (HVDC) transmission for power grid modernization. Hyosung Goodsprings signed an MOU with India's Jaison Group to build a $20 million industrial pump plant in Maharashtra. Naver will also explore business opportunities in India in partnership with Tata Consultancy Services (TCS), the IT affiliate of the Tata Group.
The government also added institutional support for corporate investment. The two countries agreed to establish an Industrial Cooperation Committee to discuss trade and investment issues and to identify joint projects in strategic sectors such as shipbuilding, nuclear power, and critical minerals. In addition, 15 government-to-government MOUs were signed, covering ports, cultural content, digital, SMEs, science and technology, steel, finance, and QR code payment linkage. The two countries also launched negotiations to revise the Comprehensive Economic Partnership Agreement (CEPA) and agreed to pursue its conclusion by the first half of 2027.
As this government support and corporate investment intertwine, expectations are rising that a new supply chain combining Korea's technology with India's market, workforce, and production base will be built in core manufacturing sectors such as steel, shipbuilding, and mobility. President Lee also stated in a joint press announcement, "We have agreed to establish the Industrial Cooperation Committee, a minister-level economic cooperation platform, to strengthen cooperation not only in trade and investment but also in strategic areas such as critical minerals, nuclear power, and clean energy."
The scope of cooperation is expanding beyond the economy to security and defense. In an interview with local media, President Lee mentioned the K9 self-propelled howitzer exported to India, saying, "The 'K9 Vajra' Phase 2 contract signed in April last year requires more than 60% of the manufacturing process to be carried out locally in India," adding, "Korea will continue to provide full support for India's independent production and operation of defense equipment." This means that India's demand for domestic production and Korea's defense industry's localization strategy are aligning.
A senior government official assessed, "With summit diplomacy and corporate investment in tandem, Korea-India relations are evolving beyond simple trade into a strategic alliance encompassing supply chains, manufacturing, defense, and maritime security."
