India and South Korea announced on Monday they will expand their economic ties through a?expansion of cooperation in energy and critical minerals as well as shipbuilding, semiconductors and steel. They aim to double their trade by 2030.

New Delhi and Seoul agreed to also resume and step-up negotiations in order to give new life to their 2010 Trade Agreement. India wants to see their trade more balanced, and South Korea wants to have greater access to the fastest-growing major economies.

The first South Korean state visit in India in eight years, President Lee Jae Myung spent three days in India.

After talks with Indian PM Narendra Modi, Lee told reporters that they had decided to upgrade their framework of economic cooperation to create a shared growth engine.

Lee stated that the?two countries had created for the first-time a ministerial level economic cooperation committee. They would also strengthen their cooperation in areas like nuclear power plants, renewable energy, trade, and investment.

Lee said that India and South Korea will continue to work together to secure a stable supply of energy and key raw materials like naphtha.

Modi said Lee’s visit was very significant, and that both countries had made important decisions to increase two-way trade from $27 billion to $50 billion by 2030.

Modi said that today, "we are laying the groundwork for the success of the next decade," as he remembered the strong civilisational links between the two nations, which date back many centuries.

INDIA'S STAINLESS SECTOR: A MASSIVE INVESTMENT

Indian Trade Minister Piyush Goyal stated that he had held discussions with his South Korean counterpart Yeo Han-koo and discussed ways to revive and revamp the trade pact. He also explored opportunities to further deepen the cooperation in areas such as industry, green power and digital trade.

The South Korean news agency Yonhap reported that Lee would attend a joint business conference on Monday, where 250 South Koreans are expected to participate, including the leaders of household names such as Samsung Electronics and Hyundai Motor, as well LG Group.

Yonhap reported that the two sides also planned to sign 20 memoranda on understandings with the private sector, covering areas such as shipbuilding, digital technology and energy.

Separately, South Korea’s POSCO Holdings announced in a regulatory submission on Monday that their steelmaking unit planned to build a joint-venture integrated steel plant with India’s JSW?in Odisha. POSCO Holdings' investment up to the end of 2031 is estimated at $1.09 billion.

The joint venture deal ?to set up a 6-million-ton-per-annum steel plant in Odisha was announced last week.

Maeng Hyun Chul, a researcher at the?Asia Center of Seoul National University, spoke at a seminar on policy held at South Korea’s parliament this week. He noted India's complaint about a growing?trade gap with South Korea, and stated that commercial ties had not kept up with political ties.

According to data from the Korea International Trade Association, South Korea enjoyed a trade surplus of $12.8 billion last year. Exports totaled $19.2 billion while imports were $6.4 billion.

Lee will visit Vietnam after India. Reporting by Joyce Lee, YP. Rajesh and Manoj. Kumar, in New Delhi. Editing by Ed Davies.

(source: Reuters)