India and the Republic of Korea have formalised a Memorandum of Understanding (MoU) to strengthen cooperation in the micro, small and medium enterprises (MSME) sector, marking a new phase in bilateral economic engagement between the two countries. This agreement was signed during the State Visit of South Korean President Lee Jae-Myung to India, underscoring the growing importance of MSMEs in driving inclusive growth and strategic collaboration.
The MoU — inked between India’s Ministry of MSME and South Korea’s Ministry of SMEs and Startups — establishes a formal framework for sustained cooperation, regular exchanges, and joint initiatives to support small businesses on both sides. It institutionalises continuous dialogue on MSME policy, sharing of best practices, technology and knowledge transfer, and business matchmaking to facilitate partnerships and market access for enterprises from both nations.
According to officials, this structured cooperation will help unlock mutually beneficial opportunities, improve sectoral coordination, and enhance competitiveness in both countries’ domestic and global markets. The agreement includes mechanisms for information exchange, expert interactions, and joint programmes to boost trade, investment, innovation, and inclusive economic growth.
Analysts say the MoU also reflects broader ambitions within the India–South Korea Special Strategic Partnership (2026–2030), which seeks to deepen economic, technological, and strategic ties. Beyond MSMEs, both countries are actively working to expand bilateral trade, pursue upgrades to the Comprehensive Economic Partnership Agreement (CEPA), and accelerate cooperation in sectors such as technology, semiconductors, and defence.
The pact is expected to help Indian MSMEs access Korean industrial networks and global value chains — particularly in advanced manufacturing, electronics, and precision engineering — while also enabling Korean small businesses to deepen their presence in the Indian market. Ultimately, sustained MSME cooperation could contribute to job creation, innovation, and broader economic resilience in both countries.