New Delhi: Commerce and Industry Minister Piyush Goyal said on Thursday that the India–South Korea free trade agreement (FTA), signed in 2009 and brought into effect in 2010 during the Congress-led UPA II government, is the result of a poorly negotiated, imbalanced agreement tilted against India.
“Since then, bilateral merchandise trade between the two countries has increased by 92.7 per cent, with India’s imports rising by 103.7 per cent, clearly not favouring India. Thus, while overall trade expanded, the trade deficit also widened,” the minister pointed out in a post on social media platform X.
He further stated that in 2015, Prime Minister Narendra Modi and the President of the Republic of Korea met and agreed to commence negotiations to amend the India–Korea CEPA (comprehensive economic partnership agreement), with a view to achieving both qualitative and quantitative growth in trade through an agreed roadmap.
Thereafter, at the ministerial-level meeting of the joint committee under the India-Korea Comprehensive Economic Partnership Agreement (IKCEPA), the ministers announced the launch of renegotiations, under which eleven rounds were held, and an Early Harvest Package was agreed upon.
Now, through sustained and concerted efforts, the two countries have decided to go beyond the earlier agreed aspects and prioritise a more reciprocal and mutually beneficial partnership, with a strong focus on key sectors of shared interest, while also addressing non-tariff barriers and rules of origin. The renegotiation talks are expected to conclude by the end of 2026 or, at the latest, by mid-2027.
At the same time, consistent follow-up to enhance localisation and reduce import dependency of Korean companies operating in India has begun to yield results. We are now witnessing genuine indigenisation and improved reciprocity, he explained.
Additionally, during the recent state visit of the President of the Republic of Korea to India, it was announced that JSW Steel and the Republic of Korea’s POSCO have formed a 50:50 joint venture to establish a 6 MTPA greenfield integrated steel plant in Odisha, with an estimated investment of Rs 35,000 crore. This joint venture route of investment is unlike earlier investments by Korean companies, which were in the form of wholly owned subsidiaries, Goyal pointed out.
In addition, multiple MoUs have been signed between the two nations, aimed at strengthening bilateral economic ties across trade, industry, strategic resources and clean energy, enhancing technical cooperation and business matchmaking, with a focus on the MSME sector and improving supply chain resilience and boosting industrial co-production
The PM Modi government’s approach is clear: ensuring fair trade, more balanced outcomes, and a steady push to strengthen domestic manufacturing, while firmly safeguarding national interests, making this a win-win partnership, the minister added.
(IANS)
