India Tells South Korea to Negotiate Fresh Free Trade Pact
India has extended an invitation to South Korea to engage in discussions for a new bilateral trade agreement aimed at enhancing economic cooperation.
In addition to trade negotiations, both countries deliberated on the potential creation of a sizable industrial township, which would serve as a specialized zone within India exclusively for Korean enterprises.
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The suggestion was put forward during discussions between Commerce Minister Piyush Goyal and his Korean counterpart, Yeo Han-koo, who is accompanying President Lee Jae-myung on his official trip to India.
The two nations have an existing comprehensive economic partnership agreement (CEPA) that came into effect in January 2010. Recognizing the changes in the global landscape, Goyal emphasized the significant passage of time since the initial signing of the CEPA 16 years ago, indicating the necessity for a more up-to-date framework.
The discussion between the two countries revolved around the goal of doubling bilateral trade to $54 billion by the year 2030 and reducing the growing trade deficit, which stood at $15.19 billion in the fiscal year 2024-25. During his speech at the India-Korea Business Forum, Goyal announced intentions to establish a specialized industrial township in India specifically tailored for Korean businesses.
This designated area would offer ready-to-use infrastructure to support Korean companies in accessing the Indian domestic market and taking advantage of its increasing number of global free trade agreements.
President Myung stressed the significance of India's position as a key player in the global economy and urged for increased cooperation in advanced industries, artificial intelligence, and maritime trade.
Both countries have agreed to adopt a proactive strategy to tackle non-tariff obstacles and simplify regulations regarding the source of goods in order to establish a more equitable economic alliance.
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He emphasized India's position as the fourth-largest economy in the world and highlighted its significance as a key player in the global economy, with a population of 1.4 billion people. He pointed out the ample opportunities for expanding business and trade, noting that there is considerable potential for growth in bilateral trade.
Through continuous efforts and negotiations on the Comprehensive Economic Partnership Agreement, it is anticipated that bilateral trade will double in the near future.
He underscored the importance of readying high-technology sectors for the future by fostering collaboration and capitalizing on India's expertise in artificial intelligence. Additionally, he expressed intentions to enhance partnership within the maritime industry.
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Furthermore, he emphasized the significance of advancing beyond economic collaboration to establish a robust foundation of interpersonal trust between the two nations.