-By Ankita Dutta
The bilateral trade between India and South Korea saw a substantial increase of 17% in 2022, reaching a total value of $27.8 billion. This is a positive development for both countries and demonstrates the strengthening of their economic relations.
One noteworthy aspect of this growth was India’s apparel export to South Korea, which exceeded expectations and recorded a remarkable 51% increase. This has contributed significantly to the bilateral trade volume between the two nations. Furthermore, this growth in exports is an indicator of the rising demand for Indian textile products in the South Korean market.
Conversely, India’s exports of fabric and yarn to South Korea have decreased over the year. This was disappointing news as India is known for its high-quality textile products and yarn. Despite this, India’s fabric imports from South Korea increased in 2022, which indicates that there is still a demand for fabric products in India that cannot be fulfilled by domestic suppliers.
It is fascinating to note that despite fabric and yarn being exported at a higher value than apparel, the latter experienced substantial growth in exports. The apparel exports from India to South Korea increased from $39.002 million in 2021 to $59.451 million in 2022. However, shipments of apparel decreased from $54.132 million in 2018 to $49.749 million in 2019 and went down to $38.644 million in 2020.
The outbound shipment of yarn from India to South Korea has also decreased, registering a value of $133.765 million in 2022 compared to $184.032 million in 2021. It’s interesting to note, however, that South Korea’s yarn imports from India decreased post-COVID. In 2020, yarn imports amounted to $36.793 million, while in 2021, it surged to $74.622 million. The trend reversed in 2022, with yarn imports decreasing to $65.652 million.
The bilateral trade between India and South Korea has grown significantly, driven by India’s increasing textile exports to South Korea. While apparel exports have seen substantial growth, exports of fabric and yarn have declined. However, India’s fabric imports from South Korea have increased, reflecting the changing dynamics of trade in the textile industry between the two countries.