India to upgrade FTA with Korea, boost trade to $54 billion by 2030

Piyush Goyal on multiple occasions has flagged India's concerns over the widening trade deficit with South Korea

PTI

New Delhi

India on Monday proposed to Korea to consider negotiating a fresh bilateral free trade agreement (FTA) to make it more contemporary and address concerns over the trade deficit. The two countries are also aiming to double two-way commerce to $54 billion by 2030 from the current $27 billion while ensuring a more balanced trade relationship.

Commerce and Industry Minister Piyush Goyal said he made the suggestion to his Korean counterpart Yeo Han-koo, who is accompanying South Korean President Lee Jae Myung. The two nations already have a Comprehensive Economic Partnership Agreement (CEPA), which was implemented in January 2010. Both sides were holding meetings to review and upgrade the existing pact.

"All options are there on the table. The original work that was happening was upgrading the current CEPA. I have suggested to my counterpart that we may even consider rewriting the new chapter, completely new FTA because it should be more contemporary. A lot of water has flown down the Ganga in the last 16 years. The world has changed, the global order has changed," Goyal told reporters here after meeting Han-koo.

The minister on multiple occasions has flagged India's concerns over the widening trade deficit. "I have often shared that the original CEPA signed in 2010 has not worked for India. Our trade deficit because of the irrational way in which the CEPA was finalised in 2010 has led to tripling of our trade deficit with Korea," he said.