India, South Korea to upgrade trade pact, deepen tech and supply chain ties

India and South Korea on Monday agreed to resume negotiations to upgrade their Comprehensive Economic Partnership Agreement (CEPA), as the two sides look to expand trade, strengthen supply chains and deepen cooperation in critical technologies.

Speaking in a joint address with South Korean President Lee Jae Myung, Prime Minister Narendra Modi said both countries are aligned on core values of democracy, mutual respect and the rule of law, which continue to underpin their partnership.

Also Read: PM Narendra Modi meets South Korea President Lee Jae Myung at Hyderabad House in New Delhi


The leaders set an ambitious target to raise bilateral trade from the current $27 billion to $50 billion by 2030, noting that steps taken during the visit would help accelerate progress. An India-Korea Financial Forum was also launched to boost economic engagement and facilitate greater investment flows.

Modi said the two sides are working to build resilient ecosystems "from chips to ships" spanning technology, energy and advanced manufacturing. As part of this push, India and South Korea agreed to institutionalise an economic security dialogue focused on critical technologies and supply chains.

The two countries are also set to upgrade their trade agreement within the next year, with discussions covering sectors such as shipbuilding, steel and sustainability. Several memoranda of understanding are being pursued in these areas to expand industrial collaboration.

Beyond trade and industry, both sides emphasised cooperation in culture and creative industries, including film and animation, highlighting the long-standing people-to-people ties between the two nations.

Also Read: South Korea's Lee to seek big boost in economic ties in summit with PM Modi

Welcoming Lee on his visit to India, Modi described his counterpart’s journey as an inspiring example of struggle, service and dedication, adding that his affinity for India had been evident since their first meeting.

India and South Korea share a partnership that spans centuries, with both sides now seeking to translate that legacy into stronger economic and strategic cooperation in a rapidly evolving global landscape.

South Korean President Lee Jae Myung said Seoul will seek to raise the level of its economic cooperation with India, signalling a push to broaden and deepen an already expanding partnership between the two countries.

Lee said South Korea aims to strengthen collaboration with India across key strategic sectors, including critical minerals, nuclear energy and clean energy, as both sides look to build resilient supply chains and advance their energy transitions.

He also flagged plans to work with India to ensure a stable supply of naphtha, underscoring the importance of energy security and industrial inputs in sustaining growth and manufacturing activity.

The remarks come as India and South Korea move to upgrade their economic engagement, with a sharper focus on technology, resources and long-term supply chain stability.