India and the Republic of Korea (ROK) have moved to deepen energy cooperation and secure supply chains, as ongoing tensions in West Asia push major importers to reassess sourcing strategies and build resilience against disruptions.

In a joint statement, the two countries reaffirmed energy as a central pillar of their Special Strategic Partnership, anchored in open markets and rules-based trade. The renewed focus comes amid heightened volatility in crude and gas markets, with shipping risks and supply uncertainties in West Asia prompting countries like India to recalibrate their energy mix.

Expanding energy trade under CEPA

Both sides said they would step up trade and investment in the energy sector through the Comprehensive Economic Partnership Agreement (CEPA) and other bilateral frameworks. The existing trade relationship remains complementary, with India supplying naphtha and other petroleum feedstocks to South Korea, while importing refined petroleum products and lubricant base oils.

Maintaining stable and open trade flows in these segments is seen as critical, particularly as India looks to diversify sourcing and reduce excessive dependence on traditional West Asian suppliers. The two countries also indicated scope for expanding cooperation across the broader energy value chain.

LNG coordination gains urgency

India and South Korea, both large LNG consumers, agreed to explore closer coordination among buyer nations to improve market transparency and stability. The move reflects growing concerns over price volatility and supply risks in global gas markets.

For India, the emphasis on LNG aligns with its broader strategy of increasing the share of natural gas in the energy mix while ensuring supply security. The current geopolitical situation has reinforced the need for flexible sourcing arrangements and stronger collective bargaining among consuming nations.

Shipbuilding seen as strategic lever

The joint statement also highlighted shipbuilding and maritime infrastructure as critical to energy security. The two sides will explore collaboration in areas such as shipyard development in India, modernisation, technology partnerships and human resource development.

A stronger shipbuilding ecosystem is expected to support the safe and efficient transportation of energy resources, an area gaining importance as key shipping routes face heightened risks.

India and South Korea also called on regional partners to keep global energy supply chains open and reliable, signalling a broader push for cooperation to safeguard economic stability in an increasingly uncertain geopolitical environment.

Trade push, $50 bn target and new frameworks

On the economic front, Modi underlined that bilateral trade currently stands at $27 billion and reiterated the joint ambition to scale this up to $50 billion by 2030, a key marker for the next phase of engagement.

To support this expansion, both sides launched an India-Korea Financial Forum to facilitate capital flows and set up an Industrial Cooperation Committee to boost business-to-business engagement. An Economic Security Dialogue will also be initiated to strengthen collaboration in critical technologies and resilient supply chains.

India will additionally establish Korean Industrial Townships to ease market entry for South Korean firms, particularly small and medium enterprises.