The trade and economic relations between India and Republic of Korea (Korea) have gathered momentum in recent years with bilateral trade reaching a substantial figure of $ 17.57 billion in 2013. India is the 15thlargest trade partner of Korea. Bilateral Comprehensive Economic Cooperation Agreement (CEPA) has spurred the process. Investments both ways are on the upswing. Korean majors such as Hyundai Motors, Samsung Electronics, LG, etc., which have invested around $ 2.93 billion till September 2013 in India, have plans to expand further. Actual Indian FDI led by Mahindra & Mahindra (Ssangyong Motors), Aditya Birla Group (Novelis Ltd.) & TATA (Tata Daewoo commercial vehicles) also is inching close to $ 3 billion.
Major items of India's export to Korea are mineral fuels / oil distillates (mainly naphtha), cereals, iron and steel . Naphtha has emerged as the most important single item of India’s export to Korea. Exports of residues and waste from food industries, prepared animal fodder has registered 37.4% increase followed by Aluminum &Articles with increase of 31.3% and ores, slag, ash 17.8% respectively.
Korea's main exports to India are automobile parts, telecommunication equipment, hot rolled iron products, and petroleum refined products, base lubricating oils, nuclear reactors, mechanical appliances, electrical machinery & parts and iron & steel products. By product, exports of mobile communication devices, such as smartphones, Shipments of petroleum products and ships dropped 5.9 percent and 6.3 percent on-year, respectively, with exports of steel products plunging 11.9 percent.
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