DPIIT & KOTI Ink MoU for Logistics & Infrastructure Growth

India and South Korea have taken a significant step towards strengthening their logistics and infrastructure collaboration. On February 10, 2025, the Department for Promotion of Industry and Internal Trade (DPIIT), Government of India, and the Korea Transport Institute (KOTI), Republic of Korea, signed a Memorandum of Understanding (MoU) at the Sejong National Research Complex in South Korea.

The agreement was formalized by Mr. Youngchan Kim, President of KOTI, and H.E. Amit Kumar, Ambassador of India to South Korea. This partnership aims to improve logistics efficiency, enhance infrastructure planning, and promote sustainable economic development through knowledge exchange and technical collaboration.

How Will This MoU Benefit India’s Logistics Sector?

The MoU focuses on fostering deeper cooperation between DPIIT’s Logistics Division and KOTI. South Korea’s expertise in transport and logistics is expected to aid India’s ongoing infrastructure expansion, particularly under the PM GatiShakti National Master Plan. The agreement outlines a structured mechanism for knowledge sharing, technology transfer, and research-driven programs.

Key highlights of the collaboration include:

• Developing Logistics Master Plans – The agreement will support India in creating detailed infrastructure roadmaps based on South Korea’s advanced planning models.
• Enhancing Technological Adoption – India will benefit from KOTI’s experience in integrating smart technologies into logistics operations.
• Skill Development & Training – The partnership will facilitate skill-building programs and technical assistance to improve logistics efficiency.

By leveraging global expertise, this collaboration aligns with India’s efforts to bring down logistics costs, currently estimated at 13-14% of GDP, and improve sector competitiveness.

What is the Historical Background of India-South Korea Cooperation?

India and South Korea have a history of partnerships in transport and logistics. During the Indian Prime Minister’s visit to South Korea in May 2015, multiple agreements were signed to strengthen bilateral relations. These included:

• Avoidance of Double Taxation Agreement – To prevent tax-related challenges in cross-border trade.
• MoU on Audio-Visual Co-Production – Aimed at promoting collaboration in films and animation.
• Framework for Cooperation in Road Transport & Highways – Focused on improving road safety and construction technology.
• MoU on Maritime Transport & Logistics – Strengthened technological exchanges in the shipping sector.

These agreements laid the groundwork for the latest MoU, reflecting a long-standing commitment to enhancing infrastructure and trade ties between both countries.

How Does This Agreement Fit Into India’s Current Logistics Strategy?

India has been taking proactive steps to improve logistics and supply chain efficiency. The National Logistics Policy (NLP), launched on September 17, 2022, aims to streamline operations and reduce costs. Additionally, DPIIT’s 2023 report, “Logistics Cost in India: Assessment and Long-Term Framework”, provided insights into the financial impact of logistics inefficiencies.

With this new MoU, India plans to integrate global best practices into its logistics framework. The collaboration will focus on implementing GIS-based planning tools, improving multimodal transport systems, and promoting green logistics solutions. By working closely with KOTI, India is set to achieve its goal of reducing logistics costs, enhancing export competitiveness, and improving overall ease of doing business.

Summary of the news