Importing Products from South Korea to India: A 2025 Trade Overview

 


India and South Korea have developed a robust trade relationship, significantly influenced by the Comprehensive Economic Partnership Agreement (CEPA) signed in 2010. This agreement has facilitated smoother trade flows, particularly in sectors like electronics, steel, automotive, and petrochemicals. In the fiscal year 2024, India's imports from South Korea amounted to approximately $21.1 billion, while exports stood at $6.4 billion, resulting in a trade deficit of $14.7 billion .Wikipedia

Key Imports from South Korea

South Korea ranks among India's top trading partners, supplying a diverse range of products. The primary imports include:Electronics and Semiconductors: India's demand for electronic goods has surged, with imports reaching significant levels. South Korea, home to tech giants like Samsung and LG, is a major contributor to this sector.

  • Automobiles and Auto Components: Brands like Hyundai and Kia have a substantial presence in India. Kia India, for instance, has been importing models such as the EV6 and EV9 directly from South Korea .

  • Iron and Steel: In the first ten months of FY2024–25, India imported 2.4 million metric tons of finished steel from South Korea, marking an 11.7% increase from the previous year .

  • Petrochemicals and Plastics: South Korea is a significant supplier of petrochemical products, including various plastics used in multiple industries across India.

Trade Statistics: India–South Korea (FY2024–25)

Category

Value (USD Billion)

Notes

Total Imports from South Korea

21.1

Includes electronics, steel, automobiles, and petrochemicals

Total Exports to South Korea

6.4

Major exports include agricultural products, textiles, and pharmaceuticals

Trade Deficit

14.7

Reflects the imbalance favoring South Korea

Import Procedures and Compliance

Importing goods from South Korea into India involves several steps:

  1. Import Licensing: Ensure that the products are not restricted or prohibited. For restricted items, obtain the necessary licenses from the Directorate General of Foreign Trade (DGFT).

  2. Customs Clearance: File the Bill of Entry and ensure all documentation, including invoices, packing lists, and certificates of origin, are in order.

  3. Tariff Considerations: Under CEPA, many products benefit from reduced tariffs. However, it's essential to verify the applicable rates for specific goods.Wikipedia

  4. Quality and Safety Standards: Ensure that imported goods comply with Indian standards, especially for electronics and automotive components, which may require certification from bodies like the Bureau of Indian Standards (BIS).

Challenges and Considerations

  • Trade Imbalance: The significant trade deficit has prompted India to seek better market access for its products in South Korea and to review existing trade agreements.

  • Regulatory Changes: India has implemented policies to protect domestic industries, such as imposing safeguard duties on certain steel imports 

  • Logistics and Supply Chain: Importers must navigate challenges related to shipping, customs delays, and fluctuating freight costs.

Conclusion

Importing products from South Korea presents lucrative opportunities for Indian businesses, given the quality and technological advancement of Korean goods. However, it's crucial to stay informed about regulatory changes, tariff structures, and compliance requirements to ensure smooth operations. By leveraging the benefits of agreements like CEPA and maintaining diligent trade practices, importers can effectively tap into the South Korean market.

Comments

Post a Comment

Popular posts from this blog

Import Products from Turkey to India: A Comprehensive Guide

Image
Turkey, a nation bridging Europe and Asia, has emerged as a significant player in international trade, offering a plethora of products that are highly sought after by Indian consumers and businesses alike. As the global economy evolves, importing products from Turkey presents an excellent opportunity for Indian businesses looking to diversify their offerings, reduce costs, and enhance their competitive edge. This article provides an overview of the advantages of importing from Turkey, the types of products available, and the essential steps to successfully import goods. Why Import from Turkey? Diverse Product Range : Turkey is renowned for its rich culture and diverse production capabilities. From textiles and machinery to food products and automotive parts, Turkey offers a wide variety of high-quality goods. Cost-Effective Solutions : Turkish products often come at competitive prices due to the country's favorable trade agreements and lower labor costs. This affordability can enha...
Read more

Bridging the Gap: Indian Goods at the Doorstep of Kuwait

Image
The launch of Flipkart’s Indian product sale in Kuwait comes at an opportune time, where cross-border e-commerce has gained immense traction in the Middle East. Kuwait is known for its large expatriate population, particularly South Asians, with a significant portion hailing from India. These individuals have long expressed the desire to access Indian products in Kuwait, which often involve long waits, high costs of shipment, or dependency on local stores with limited Indian offerings. Flipkart’s entry into the Kuwaiti market addresses this growing demand by offering residents a direct line to India’s rich assortment of products. As a household name in India, Flipkart is known for its extensive product range and customer-centric approach. Now, Kuwaiti shoppers can experience the same benefits, with the ability to browse, shop, and receive Indian goods with the convenience of reliable international shipping and localized services tailored to the region’s needs. What Shoppers in Kuwait ...
Read more