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Korea-India Relations

Economic Relations

  1. Korea-India Relations
  2. Economic Relations
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Korea-India Economic Relations (as of 2021)

DATE
2022-03-16

Korea-India Economic Relations

(As of 2021)



Korea-India Trade


Korea and India have a strong economic partnership that is rapidly expanding. According to data from Korea's Ministry of Trade, Industry, and Energy (MOTIE), bilateral trade between the two countries reached $23.7 billion in 2021, surpassing $21.5 billion in 2018. This was the highest-ever trade volume between the two countries, representing a 40% increase over the previous year's total of $16.9 billion. Korea's exports to India increased by 30.7 percent to $15.6 billion, while imports increased by 64.4 percent to $8.1 billion, resulting in a $7.5 billion trade surplus. This increase in exports and imports was aided by a rebound in economic activity and industrial output during July to December period. The trade volume increased from $10.97 billion in the first half (January-June) to $12.69 billion in the second half (July-December).

Korea's exports to India have risen above the pre-pandemic level. In 2021, it was worth $15.60 billion, which was the second-highest export value since 2018 when it stood at $15.61 billionThe average monthly export value reached around $1.4 billion in the second half of 2021, with a monthly export high of $1.5 billion in September. Furthermore, exports increased by 24 percent to $8.2 billion from July to December, up from $6.6 billion in the same period last year. The top ten Korean exports to India registered double digits or triple digits growth due to high demand for infrastructure-related items such as steel and mineral fuels. The steel showed a triple-digit growth from May to August (431% in May, 209% in June, 324% in July, and 121% in August) compared to the same period in the previous year.

Korea's imports from India in 2021 set a new record of $8.06 billion, making it the country's highest annual imports from India. In fact, its monthly imports surpassed $700 million for the first time in March and reached $4.49 billion in the second half of 2021 (July-December). In 2021, all major imported items from India showed a significant increase. In particular, iron ore and aluminum imports experienced triple-digit growth rates of 215.5% and 143.6 %, respectively. 


[Korea-India Bilateral Trade in 2021]

                                                       (Amount in US$ millions, YoY %)

Month

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Export

1,272

1,286

1,336

1,351

994

1,166

1,230

1,286

1,494

1,401

1,474

1,315

(y-y %)

(3.6)

(-7.1)

(9.0)

(154.4)

(151.5)

(99.9)

(56.3)

(49.8)

(1.5)

(29.8)

(30.0)

(4.4)

Import

561

467

634

734

582

586

711

738

765

742

792

744

(y-y %)

(-1.1)

(-9.5)

(26.8)

(67.0)

(124.0)

(89.7)

(106.9)

(99.1)

(84.8)

(88.7)

(111.2)

(79.8)

Balance

711

819

702

617

412

580

519

548

729

659

682

571

Source: Korea International Trade Association 


[Korea-India Bilateral Trade 2015-2021]

                                                     (Amount in US$ 100millions, YoY %)

Year

2015

 

2016

 

2017

 

2018

 

2019

  

2020

 

2021

 

%

%

%

%

%

%

%

Total

162

-10.5

158

-2.5

200

26.6

215

7.5

207

-3.7

169

-18.4

237

 

Export

120

-5.9

116

-3.6

151

29.8

156

3.7

151

-3.3

120

-20.8

156

30.7

Import

42

-19.6

42

-1.2

49

18

59

18.9

56

-5.4

49

-12

81

64.4

Balance

78

 

74

 

102

 

98

 

95

 

71

 

75.5

 

Source: Korea International Trade Association 

 


Korea-India Investment


According to data from the Export-Import Bank of Korea, Korean investment in India amounted to $226 million as of September 2021. Korea invested $96 million in the first quarter (Jan-Mar), $37 million in the second quarter (Apr-Jun), and $93 million in the third quarter (Jul-Sep) of 2021. 


[Korea’s FDI to India 2013-2021]

                                                               (Amount in US$ Millions)

Year

2013

2014

2015

2016

2017

2018

2019

2020

2021*

Total

(since   1980)

No. of 

Registration

190

160

264

268

308

410

452

308

164

4,392

No. of New

 Companies

41

39

55

55

113

119

129

75

40

1,340

Investment

(Registered)

573

387

390

382

949

846

686

588

226

9,221

Investment

347

337

365

337

516

1,072

453

625

217

7,272

 Source: Korea EXIM Bank (*as of September 2021)


India's investment in Korea reached $2.02 million in 2021, a modest increase from $1.43 million in 2020. India invested $180,000 in the first quarter (Jan-Mar), $440,000 in the second quarter (Apr-Jun), $170,000 in the third quarter (Jul-Sep) and 1.22 million in the fourth quarter (Oct-Dec). Indian investment in Korea only had a temporary surge in 2013 and 2019 due to Mahindra and Mahindra’s investment in Ssangyong Motor.


[India’s FDI to Korea 2013-2021]

                                                                    (Amount in US$ Millions)

Year

2013

2014

2015

2016

2017

2018

2019

2020

2021

Total

(since   1980)

No. of 

Registration

23

9

10

6

11

13

16

12

10

106

Investment

(Registered)

98.7

1.6

2.5

1.4

1.7

2.0

96.6

1.43

2.02

679

Source: Ministry of Trade, Industry and Energy, Korea
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