Square Insights [Market Update] The India–Korea
“Supply Chain Connectivity Axis” Opens
Toward the $50 Billion Era by 2030

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Why India–Korea Supply Chain Cooperation Is Gaining Attention

Recently, global supply chains have been reorganized around supply chain diversification and responses to geopolitical risks. In this trend, India is emerging as an alternative production base attracting global companies, supported by its strong growth and manufacturing industry promotion policies.^[1][2]

Last April, Korea and India held economic cooperation discussions focused on supply chain stabilization and the expansion of advanced industry cooperation. Major agenda items included ▲expansion of bilateral trade by 2030 ▲discussions on revising the CEPA* ▲shipbuilding and maritime logistics cooperation ▲strengthening semiconductor and AI supply chain cooperation. In particular, along with the spread of the “China Plus One (China+1)” strategy among global companies, Korean companies are also expanding investments in India. Local production expansion centered on the automotive, steel, battery, and electronics industries is increasing, and the importance of supply chain and logistics infrastructure cooperation is also growing.

What is CEPA?
CEPA stands for Comprehensive Economic Partnership Agreement, an economic agreement that comprehensively covers cooperation in goods, services, and investment between countries. Representative examples include the Korea–India CEPA and the Korea–ASEAN CEPA.

Four Key Changes to Watch

1) CEPA Upgrade and Potential Tariff Reduction

The two countries are continuing discussions on revising the CEPA, centered on expanding market accessibility and easing tariff barriers. The possibility of reducing tariff burdens on automotive parts, battery materials, and high-value-added chemical products is being discussed. ^[1][4] In preparation for potential future cargo volume expansion, strategies to secure shipping capacity and logistics networks centered on major ports such as Nhava Sheva and Chennai are expected to become increasingly important. (Based on industry analysis)

2) Expansion of Local Production Led by POSCO and Hyundai Motor

Korean companies’ investments in India are expanding beyond consumer goods into infrastructure and heavy industries. POSCO and the JSW Group plan to expand local production bases through an integrated steel mill project in Odisha with an annual production capacity of 6 million tons. ^[1][5] Hyundai Motor is pursuing expanded production capacity in India and strengthening localized EV-focused strategies, while reportedly accelerating the expansion of locally customized EV production. ^[6]

3) Expansion of Semiconductor and Digital Supply Chain Cooperation

Discussions on digital cooperation between the two countries are drawing attention as a key axis for expanding advanced manufacturing and semiconductor supply chain cooperation, and advanced supply chain cooperation is expected to expand through the combination of Korea’s manufacturing competitiveness and India’s abundant IT and semiconductor talent base. ^[1][3] As demand for precision logistics centered on high-tech cargo increases, the importance of real-time tracking and supply chain visibility is also expected to grow further. (Based on industry analysis)

4) Strengthening Shipbuilding and Maritime Logistics Cooperation

Discussions on smart shipyards and maritime logistics modernization are continuing, centered on the Tamil Nadu region in southern India. Expectations are rising for the diversification of port congestion risks and improved operational efficiency on Indo-Pacific shipping routes. ^[3][4]

Conclusion and Insights

India is no longer simply a consumer market but is emerging as a key hub for global production and supply chain strategies. As a result, the role of logistics companies capable of connecting regional industrial clusters and integrating the management of complex inland transportation and regulatory environments is becoming a core element of corporate competitiveness. In particular, specialized logistics strategies based on investment-concentrated regions such as Odisha (steel) and Tamil Nadu (shipbuilding and automobiles), securing real-time supply chain visibility to respond to differing infrastructure and customs environments by state, and capabilities for fast-track utilization and local regulatory response amid expanding industrial cooperation between the two countries are emerging as key factors determining successful entry into the Indian market. ^[1][4][5]

FAQ

Q1. Which products are expected to benefit first from the CEPA revision?

The possibility of reducing tariff burdens is being discussed mainly for automotive parts and electronic intermediate goods. In particular, companies pursuing production base diversification may also expect shorter logistics lead times and improved customs clearance efficiency, increasing the importance of utilizing logistics providers with local customs clearance experience and industry-specific transportation capabilities. ^[1][4]

Q2. How can inland logistics risks in India be reduced?

It is important to continuously monitor trends in port and inland transportation infrastructure modernization and prioritize the utilization of logistics hubs centered on major industrial clusters such as Odisha and Tamil Nadu. In addition, securing logistics partners with real-time cargo tracking (Visibility) capabilities and local networks is considered key to risk management in responding to differing regulations and transportation environments by state. ^[4][5]

Q3. What is the most important factor when selecting a logistics provider for entering the Indian market?

Rather than simply considering freight rate competitiveness, it is important to comprehensively evaluate local customs clearance capabilities, inland transportation networks, operational experience based on industrial clusters, and the ability to provide supply chain visibility. In particular, since India has significant regional differences in infrastructure and administrative environments, logistics providers with strong local response capabilities play a major role in securing supply chain stability.

Introduction to Samsung SDS Global Logistics Services

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In particular, Samsung SDS India has strengths in large-scale air and ocean forwarding and continues to grow by providing services such as express delivery and CFS warehousing. (Noida region inquiries: cellosquare_ndl@samsung.com)

India Branches & Warehouses | Cello Square Global Network

[References]

▶ This content is an adapted manuscript created using GenAI(ChatGPT, Gemini)
▶ It was written based on AI-driven data analysis and publicly available data, and some content may differ from actual circumstances.
▶ It was produced for informational purposes only and does not guarantee specific facts or outcomes.
▶ This content prohibits secondary processing and commercial use without prior consent.