India and South Korea Initiate Talks to Enhance Economic Partnership
Strengthening Ties Between India and South Korea
PM Modi and South Korean President Lee Jae Myung plant a sapling, at Hyderabad House in New Delhi, on Monday. (Photo:PTI)
New Delhi, April 20: On Monday, India and South Korea announced the commencement of negotiations aimed at enhancing their Comprehensive Economic Partnership Agreement (CEPA), in response to the increasing global trade disruptions caused by geopolitical tensions.
This decision was made public after discussions between Prime Minister Narendra Modi and South Korean President Lee Jae Myung, who is currently visiting India.
During a press briefing post-meeting, Modi emphasized that the collaboration between the two nations sends a powerful message of stability during these uncertain times.
“In this period of global tensions, India and South Korea together convey a message of peace and stability,” he remarked.
The two leaders also reiterated their dedication to ensuring peace and stability in the Indo-Pacific region and agreed to enhance cooperation across various sectors.
“Following President Lee’s visit, we are set to evolve our trusted collaboration into a forward-looking partnership,” Modi stated, highlighting the goal of fostering an inclusive Indo-Pacific.
Topics discussed included expanding trade, investments, artificial intelligence, semiconductors, critical and emerging technologies, and strengthening connections between people.
Modi pointed out the vast potential for collaboration, saying, “From chips to ships, talent to technology, entertainment to energy, we will uncover new opportunities for cooperation in every sector.”
The CEPA, which has been in effect since January 2010, has played a crucial role in bilateral trade. Over ten rounds of review discussions have already taken place to identify gaps and consider its enhancement.
India is seeking improved market access for essential exports like steel, rice, and shrimp, while also expressing concerns regarding the limited procurement of Indian steel by Korean companies and the growing trade deficit.
In the fiscal year 2024–25, India's exports to South Korea fell by 9.3% to USD 5.81 billion, down from USD 6.41 billion the previous year. Imports from Korea also saw a slight decrease of 0.34% to USD 21 billion during the same timeframe.
In a separate meeting, Commerce and Industry Minister Piyush Goyal engaged with his South Korean counterpart Yeo Han-koo to discuss revitalizing and accelerating the negotiations for upgrading the CEPA.
“We explored methods to resume and enhance the India-Korea CEPA upgrade negotiations and identified opportunities for deeper cooperation in industrial sectors, green energy, and the digital economy,” Goyal stated.
This renewed initiative to upgrade the agreement is anticipated to improve market access, mitigate trade imbalances, and open new pathways for economic collaboration between the two nations.