India and South Korea Advance Trade Agreement Negotiations Amidst Shifting Global Landscape
New Delhi – India and South Korea are accelerating discussions to enhance their existing trade agreement, the Korea-India Comprehensive Economic Partnership Agreement (CEPA), as India solidifies new free trade agreements (FTAs) with major economies and opens its markets. The move aims to maintain the competitiveness of Korean companies within the rapidly evolving Indian market.
Strengthening Economic Ties
On March 13, 2026, Yeo Han-koo, head of the Trade Negotiation Headquarters of the South Korean Ministry of Trade, Industry and Energy, met with Piyush Goyal, India’s Minister of Commerce and Industry, in New Delhi to discuss accelerating improvements to the CEPA. The meeting focused on strengthening the India-Korea economic partnership, boosting bilateral investments, and deepening supply chain collaboration.
CEPA: A Catalyst for Growth
The Korea-India CEPA, initially implemented in 2010, has been instrumental in increasing bilateral trade by over 50%, rising from $17.1 billion to $25.7 billion. However, recent FTAs signed by India with the UK, Oman, New Zealand, and the European Union necessitate an update to the CEPA to ensure Korean businesses remain competitive.
Addressing a Changing Global Trade Environment
Director Yeo emphasized the importance of economic cooperation between the two nations to diversify markets and supply chains in the face of a changing global trade environment. Discussions centered on accelerating improvements to the Korea-India CEPA. Both sides reaffirmed their commitment to enhancing investment, expanding supply-chain collaboration, and fostering a mutually beneficial trade relationship.
India: A Key Economic Partner
With a population of 1.45 billion, India is the world’s most populous country and its fourth-largest economy, experiencing an average annual economic growth rate of approximately 7% over the past decade. South Korea is currently India’s 13th largest foreign direct investment (FDI) investor, with total investments reaching $6.69 billion between April 2000 and March 2025.
Expanding Cooperation Beyond Trade
During the visit, Director Yeo met with Korean companies operating in India to address their challenges and requested support from the Indian government in resolving these issues. He also participated in a meeting with Indian IT and AI companies to explore future collaboration opportunities in artificial intelligence and digital trade.
Director Yeo stated that India is a crucial component in the reorganization of the global supply chain and a key partner in the New Southern region, emphasizing the continued commitment to expanding mutually beneficial economic cooperation.
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