The Economic Development Of India-South Korea Trade Relations: An Overview

Saniya Feroze Siddiqui & Miss Jyotsna Singh, Amity University Lucknow

Historical background of bilateral trade relations between India and South Korea

India and South Korea started bilateral commercial links in the early 1960s. Both nations needed help with economic development at the time and sought to diversify their trading relationships outside their established ones. India was eager to explore new markets in East Asia, while South Korea was seeking for fresh raw material supplies.

The two countries inked their first bilateral trade agreement in 1962, laying the groundwork for future collaboration. The agreement permitted the trade of commodities and services, as well as technical knowledge and cultural exchange. The two nations' trade volume was limited at the time, with India essentially exporting agricultural items and South Korea selling light industrial commodities.

Both India and South Korea undertook considerable economic changes in the ensuing decades, paving the ground for the expansion of bilateral commercial connections. India's economy was liberalised in 1991, resulting in increased foreign investment and a concentration on export- oriented growth. South Korea undertook economic changes as well, changing from an agrarian to a manufacturing-based economy and becoming a worldwide leader in areas such as steel, semiconductors, and shipbuilding.