India and South Korea Begin CEPA Upgrade Talks to Address Trade Deficit
India and South Korea have begun talks to upgrade the bilateral Comprehensive Economic Partnership Agreement (CEPA) to address India's widening trade deficit with South Korea. Both nations will set up special working groups for digital trade, supply chains, services and industrial cooperation. The original India-Korea CEPA was signed in 2009 and entered force on January 1, 2010.
Key Facts & Details
9 points- 1India-South Korea begin CEPA upgrade talks
- 2Goal: address India's trade deficit with South Korea
- 3Special groups for digital trade, supply chains, services
- 4Original India-Korea CEPA in force since 2010
Deep Dive
- +India-Korea CEPA was India's first such agreement with an OECD member
- +Signed: August 2009; in force: January 1, 2010
- +Bilateral trade target: $50 billion by 2030
- +South Korea is India's 17th largest trading partner
- +Major Korean investments in India: Hyundai, Samsung, LG, Kia
Exam Focus
Likely MCQ: When did the India-South Korea CEPA come into force? → Answer: January 1, 2010
Related Topics
Exam Relevance & Angle
India-Korea CEPA, FTAs and bilateral trade are repeat questions for Banking, UPSC and SSC exams.
Target Exams
Background & Context
The India-South Korea Comprehensive Economic Partnership Agreement (CEPA) was signed in August 2009 and came into force on January 1, 2010. It was India's first CEPA with an OECD member country.
The agreement covers:
• Trade in goods with phased tariff reduction/elimination
• Trade in services including IT, telecom, finance
• Investment with national-treatment provisions
• Government procurement, IPR, customs cooperation
Under Indian PM Modi's Act East Policy (rebranded from Look East Policy in 2014), South Korea is one of the key strategic partners. Both nations have a 'Special Strategic Partnership' since 2015.
Major Korean investments in India include:
• Hyundai Motor India — second-largest car maker
• Samsung Electronics — Noida plant is one of the world's largest mobile-phone factories
• LG, Kia, POSCO, Doosan
India's trade deficit with South Korea stood at about $14 billion in FY2024-25, as Korean imports (machinery, electronics, steel) far exceed Indian exports (mineral oils, agricultural produce).
Related GK Concepts
Must KnowTest Yourself
1 / 3When did the India-South Korea Comprehensive Economic Partnership Agreement (CEPA) come into force?
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