India conveyed to the visiting South Korean delegation, led by President Lee Jae Myung, that their country’s ship owners could flag vessels in India, recruit from New Delhi’s rapidly growing seafarer pool, and contribute to the infrastructure of Maharashtra’s Vadhvan container port, a multipurpose terminal in Bahuda in Odisha, and the Deendayal Port in Gujarat, among others.

The South Korean President concluded his three-day visit to India on Tuesday afternoon, which India’s Ministry of External Affairs termed as one that delivered tangible outcomes in key areas. The highlight of Lee’s visit was India and South Korea announcing the ‘Shared Vision for Operation of Yard Assisted Growth with Efficiency and Scale’, or VOYAGES, agreement.

An agreement was signed between Bharat Earth Movers Limited of India, HD Korea Shipbuilding and Offshore Engineering (HD KSOE), and HD Hyundai Samho Company Limited to jointly design, manufacture, and support next-generation conventional and autonomous maritime and port cranes in India. India’s current dependence on China for port cranes is over 90 per cent. To help build ancillary industries in India, the association of Korean shipbuilding equipment manufacturers will set up its office in India in the next few months.

Sources pointed out that the geopolitical tensions between the United States and China have created openings for South Korean shipbuilders as some Western shipping companies are turning towards them by diversifying orders away from China to reduce political risk. The US-South Korea trade deal finalised in October 2025 included $150 billion for shipbuilding cooperation. The India-South Korea ‘VOYAGES’ pact is the second such shipbuilding-related cooperative arrangement entered into by South Korea with another country.

Despite China’s superiority in low-margin bulkers and standard containers, Korean shipyards remain strong in high-value segments, such as liquefied natural gas (LNG) carriers, dual-fuel container ships, ultra-large container ships, and advanced offshore platforms. Of the 760 LNG carriers currently in operation globally, about 70 per cent were built in Korea. Korea’s top three shipbuilders (HD Korea Shipbuilding and Offshore Energy, Hanwha Ocean, and Samsung Heavy Industries) have almost 70 per cent market share in the production of global LNG containers.

As part of the VOYAGES agreement, the Indian side “encouraged” South Korean ship owners to use the Gujarat International Finance Tec-City International Financial Services Centre (GIFT IFSC) and E-Samudra to flag vessels in India “in order to benefit from relaxed ownership structures and available financial incentives”.

During the discussions between the two delegations on Monday at Hyderabad House, the Indian side also noted that India’s rapidly growing seafarer pool (over 320,000, with strong growth in women seafarers) allows Korean ship owners to recruit manpower to support Korean-flag operations. India has announced a 400-plus vessels acquisition plan by public agencies in India alone for the foreseeable future, with a total value of ₹2.2 trillion ($25 billion), during the India Maritime Week 2025.

As part of their cooperation in the sector, the Korea Marine Equipment Association (KOMEA) has opened a branch in Mumbai, and the Korea Marine Equipment Research Institute (KOMERI) has expressed interest in related cooperation. The Korea International Cooperation Agency (KOICA) will impart skill development.

The two countries signed an agreement under Article 6.2 of the Paris Agreement, the second such pact India has inked with a developed economy after a similar agreement with Japan last year. The agreement will help unlock international climate finance and investment from South Korea in emerging green technologies in India. It will also provide a formal framework for India to generate and trade high-integrity carbon credits (ITMOs).

In the financial sector, Korea Development Bank is set to open its office in India, and the Indian side invited South Korea’s National Pension Service to open its office in the country. Currently, six Korean banks with 20 branches operate in India. In the energy sector, both India and South Korea are import dependent and resolved to “maintain a stable, secure and reliable supply of energy resources to each other, including efforts by both countries to maintain open trade in naphtha and other petroleum products”.

The two leaders, Modi and Lee, decided that the meetings of their respective foreign ministers, finance ministers, and science and technology ministers will be held this year. India’s defence minister will visit South Korea in May, and the Industrial Cooperation Committee, a new dialogue mechanism, will hold its first meeting this year. The two sides will also aim to hold the meeting on defence industry cooperation and the inaugural defence and foreign affairs dialogue soon.
Source: Business Standard