India, Korea push FTA upgrade for a more balanced trade
India, Korea push FTA upgrade for a more balanced trade
India and South Korea aim to fast-track an upgrade to their free trade pact, targeting fewer non-tariff barriers and a balanced economic partnership during the Delhi state visit.
India and South Korea are set to upgrade their Comprehensive Economic Partnership, aiming for a more balanced economic relationship by addressing non-tariff barriers and expanding market access during the South Korean president’s visit to Delhi.
Commerce Minister Piyush Goyal said the two sides have agreed to move on a fast-track, mission-mode upgrade of the partnership, focusing on easing non-tariff barriers, simplifying rules of origin, and widening market access so both nations can grow toward a more balanced relationship rather than one defined by a large trade deficit.
The visit, underscoring strengthened ties in trade, defence, and critical technologies, involves a bilateral summit between Prime Minister Modi and President Lee Jae-myung. This marks their third in-person meeting since Lee took office, amid talks that also cover shipping, AI, and other high-tech collaborations.
Trade data from the period shows India imported goods worth 21.06 billion dollars from South Korea in 2024-25 and exported 5.82 billion dollars, resulting in a trade deficit of 15.24 billion dollars.
Analysts say a successful upgrade could boost cooperation across defence and technology sectors, while also streamlining rules that have hindered easier business flow, signaling a broader trajectory of strategic and economic partnership between the two democracies.
