India-South Korea bilateral trade touches record USD 27.8 bn mark, highest ever so far: KOTRA
During 2022, the semiconductor exports rose 95% YoY as the demand and sales of essential semiconductor items such as automotive, electronic products and IT equipment increased and emerged as the largest export item.
ACN EXCLUSIVE: Bilateral trade between India and South Korea has touched an all-time high figure of USD 27.8 billion during the current year 2022. It’s a 9 percent jump over the previous year’s figure of USD 23.7 billion despite the world witnessing slowing global economic growth due to the impact of the Russia-Ukraine war, surging inflationary pressure, and subsequent interest rate hikes.
South Korea registered an export volume of USD 18.9 billion against its imports USD 8.9 billion from India during 11-month period. This increase in exports and imports was aided by a rebound in economic activity and industrial output. Both, India and South Korea are aiming to take their mutual trade to USD 50 billion by 2030.
In an exclusive interview with Asian Community News (ACN) Network, Joonhwa BIN, Managing Director, Southwest Asia, Korea Trade-Investment Promotion Agency (KOTRA), New Delhi said, “The bilateral trade between India and South Korea has achieved an all-time high volume of USD 27.8 billion during the year 2022 between January and December.”
KOTRA, New Delhi is the economic section of the Embassy of the Republic of Korea in India. Headquartered in Seoul, KOTRA operates worldwide to promote Korea’s trade and investment globally.
BIN said that exports from South Korea to India included automotive and electronic components, semiconductors, and components for electrical appliances such as white goods. Imports from India to South Korea included galvanised steel, petrochemical products, etc.
In the year 2021, the trade volume between the two nations had leapfrogged by whopping 40% from USD 16.9 billion to USD 23.7 billion. However, the things to come during the current 2022 were indicative in the beginning months itself.
According to data from Korea’s Ministry of Trade, Industry, and Energy (MOTIE), bilateral trade in the first half of 2022 reached USD 14.25 billion. It was the largest trade volume between the two countries on half-yearly basis, representing a 30% increase over the previous year’s total of USD 10.97 billion. Korea’s exports to India increased by 21.6 percent to $9.0 billion, while imports increased by 47.2 percent to USD 5.2 billion, resulting in a USD 3.8 billion trade surplus.
This increase in exports and imports was aided by a rebound in economic activity and industrial output during January to June, it said.
Related article: India-Korea bilateral trade went up 40% in 2021, touched highest figure of USD 23.7 billion during Covid pandemic period
Korea’s exports to India from January to June crossed $9.0 billion which was the largest export volume between the two countries on half-yearly basis. Exports continued positive double-digit growth in each month excluding February. It reached $1.47 billion in January, an increase of 15.3% year-on-year, 12.9% to $1.51 billion in March, and 14% to $1.54 billion in April. In particular, exports in May reached $1.70 billion, an increase of 71% year-on-year, touching the second best monthly export performance, following by 2.03 billion in August 2017.
Exports of 10 major items showed a high export growth rate with more than double digits. Korea’s biggest exports to India were semiconductors, iron ore, communication devices, which have seen a recovery in demand in India. In particular, exports of semiconductors and communication devices increased dramatically.
The semiconductor exports rose 95% YoY as the demand and sales of essential semiconductor items such as electronic products and IT equipment increased and emerged as the largest export item.
Related article: India-Korea trade imbalance as more Korean manufacturing Cos. investing & importing intermediate goods: Korean envoy
Korea’s imports from India in the first half of 2022 set a new record of $5.2 billion, making it country’s largest annual imports from India.
As rising oil prices push up raw material prices, imports from India surged 47% in first 6 months of the year from a year before to $5.2 billion, exceeding $5 billion for the first time. Some of major import items had more than doubled; petroleum products increased by 127.8%, vegetable substances 142%, ferroalloy 104%, and steel products 104%.
Due to the surging prices of global energy and raw material, Korea’s trade surplus reduced to $3.75 billion in the first half of 2022. The trade imbalance between two countries has been decreasing since 2018 which was $9.8 billion
