India's Recent Economic Policy and the Potentials of Korea-India Cooperation

Korea and India are ideal economic partners with matching needs. Korea needs to foster co-operation with India in terms of diversifying trade and investment in the wake of COVID-19 and the U.S.-China conflict. Meanwhile, fostering manufacturing is a priority of India, and continuous efforts will be made to improve participation in GVC. Considering the strengths of both countries, the potential for cooperation is high. Korea is competitive in key manufacturing industries such as electronics and automobiles that India wants to foster, and has upgraded economic relations with India since the signing of the Korea-India CEPA. In addition, Korea has strong trade and investment links with ASEAN and could serve as a cooperative partner for India in ASEAN. Meanwhile, India is actively improving its investment environment and has excellent service industries in areas such as IT, R&D, and business services. Moreover, India is building a diversified economic network with the United States, the EU, South Asia, the Middle East, and Africa, showing its high potential for cooperation with Korea in those countries.