India is emerging as a beacon of economic opportunity in a world shaped by geopolitical tensions. Recent turbulence in South Korea, including the declaration and subsequent reversal of martial law, has raised concerns about the country’s economic stability. A deepening political impasse further undermine South Korea’s reputation as a reliable economic partner to India,
This situation presents a strategic opportunity for India to accelerate its journey toward self-reliance, or Atmanirbharta, across critical industries such as zinc, pharmaceuticals, and technology. With vast natural resources, robust manufacturing capabilities, and favourable government policies, India is well-positioned to reduce its dependence on South Korea.
Historically, India and South Korea have shared a dynamic trade relationship, India’s top exports to South Korea include petroleum products, aluminium, iron, steel, and organic chemicals, while major imports comprise electronics, pharmaceuticals, zinc, and auto components. While South Korea excels in delivering high-quality imports to India, many of these products, such as zinc and electronics components, can easily be manufactured domestically. This has created a opportunity for India to assert its leadership on the global stage and fulfil the market gap from within.
South Korea has been a leader in pharmaceutical innovation, but its current instability raises questions about the reliability of its supply chains. India, renowned as the “pharmacy of the world,” is equipped with infrastructure, skilled talent, and supportive government initiatives to meet India’s domestic demand for pharmaceuticals.
India’s pharmaceutical industry, bolstered by the manufacturing prowess of India’s pharma sector is prioritizing API production to reduce reliance on imports. By capitalizing on its established capabilities, India can assert its dominance as a global pharmaceutical leader while addressing supply chain vulnerabilities exposed by South Korea’s challenges.
Similarly for zinc, India has abundant reserves of this critical metal. India is home to the world’s second-largest integrated producer of zinc. The country is uniquely positioned to cater to the growing domestic demand for zinc across key industries such as infrastructure, automotive, renewable energy, batteries, sunrise sectors such as hi-tech manufacturing, EVs, electronics and others.
With India’s thrust on public infrastructure projects the demand for zinc has also increased due to its use in coating steel for corrosion-protection. India’s zinc manufacturing industry is well equipped to cater to this demand without relying on Korean zinc the supply of which, is now unreliable. Other than that, in a media statement given to Reuters at the beginning of this fiscal, South Korea’s top producer of zinc, said that they will prioritize domestic supply of zinc over exports. If this is to be taken on face value with the political unrest in the South Korea, India’s reliance on Korean imported zinc should be reduced to none so as to shield itself from supply chain issues and prioritize Indian-made zinc which not only matches but exceeds international quality standards.
Taking a closer look at India’s zinc production statistics, the country has a production capacity of around 900,000 tonnes while the demand stands roughly around 700,000 tonnes making India a net-exporter of this critical metal. But approximately 25% of this demand is sourced through imports from Korea and other countries which results in added carbon footprint as the concentrate to produce this zinc is sourced from South American or African countries. Along with that, this imported zinc is produced based on calibrations of the base country (Korea) and not the customer country (India), thus also raising questions on how fit-for-purpose it is for the Indian consumer. Added to the political volatility, Indian customers are best placed if they depend on reliable Indian zinc for their needs.
South Korea has been a technological powerhouse, excelling in electronics, semiconductors, and telecommunications. However, ongoing political turbulence threatens its ability to maintain its position in global supply chains. Meanwhile, India is rapidly emerging as a strong contender in innovation because of visionary schemes like the Production-Linked Incentive scheme which have attracted significant investments in electronics, semiconductors, and renewable energy technologies, reducing reliance on imports.
South Korea is one of the largest suppliers of auto parts and machinery to India, with special-purpose ships alone accounting for $1.96 billion in exports in 2022. India, in turn, exports raw materials like aluminium and lead to support South Korea’s manufacturing sector. Given the growing demand for vehicles and machinery in India, the domestic production of auto components offers immense potential for self-reliance. India’s zinc industry also plays a crucial role here, with various innovations undertaken by the industry like the development of alloys. This trade dynamic not only strengthens India’s strategic position but also reduces South Korea’s leverage amid its political instability.
South Korea’s challenges have created a unique opportunity for India to assert its leadership on the global stage. By leveraging its strengths in zinc production, pharmaceuticals, technology, and auto components, India can fulfil domestic needs while emerging as a reliable partner in global supply chains.
Rajesh Mehta is an International Affairs expert working on areas like Market Entry, Innovation & Public Policy.