Korea Looks beyond China towards India for Cotton, Food, Toys

Korean companies are looking at India to buy organic cotton, leather goods and handcrafts while Indian companies have shown interest in Korean toys and cosmetics as the two sides look at alternatives to replace buying from China.

Jeonbuk Business Centre, a B2B trade promotion agency launched early this year to promote India-Korea trade, said it is getting above 20 inquiries daily from Korean companies which want to buy industrial items and organic products from India amid the Covid-19 pandemic.

“Korea was buying organic fabric from China but now it is looking at India. Handicrafts and leather are the other categories of goods,” said Seo Youngdoo, official spokesperson Jeonbuk Business Centre.

On the other hand, India companies are inquiring about cosmetics, interior items and toys from Korea as it seeks to find alternatives for China from where it imports majority of its toys.

India imported goods worth $15.65 billion in FY20 from Korea while its exports were $4.84 billion. The major items of India’s exports to Korea are mineral fuels, cereals, iron and steel while imports are automobile parts, telecommunication equipment, hot rolled iron products, petroleum refined products, base lubricating oils, mechanical appliances, electrical machinery, and iron and steel products.

The two countries have a Comprehensive economic partnership agreement (CEPA) which is in the process of being reviewed as part of which India plans to seek concessions for its rice, grapes, pomegranates and eggplant exports to Seoul.

“Food, cosmetics and photonics are the other areas of interest of Indian companies,” Youngdoo said, adding that Korean firms have expressed interest in India’s industrial parks and industrial items such as machines.

“We respect Make in India and are buying materials from here,” he said.

On the impact of the Covid-19 pandemic on bilateral trade, he said a few sectors like education, food, automobiles and telecom are among the least impacted but others have been hit especially sectors comprising small and medium-sized companies.