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India, South Korea Discuss Upgrading Trade Pact to Boost $21.5B Commerce

Commerce Minister Piyush Goyal met with South Korea's Trade Minister Yeo Han-koo to discuss resuming and modernizing the Comprehensive Economic Partnership Agreement. The talks aimed to deepen cooperation in industrial sectors, green energy, and digital trade. Bilateral trade between the nations was substantial, reaching $21.5 billion in the first ten months of 2025. South Korea also remains a significant foreign investor in India, with cumulative investments reaching $10 billion.

Key Points: India-South Korea Talks on Revamping CEPA Trade Agreement

  • Discussed CEPA upgrade
  • Focus on green energy & digital trade
  • Bilateral trade hit $21.5B in 2025
  • South Korea is a top FDI source
  • Launched system for faster customs
2 min read

Piyush Goyal, S Korean counterpart discuss revamping CEPA to boost mutual trade and investment

Ministers Piyush Goyal and Yeo Han-koo meet to modernize the India-Korea CEPA, aiming to boost trade and investment in green energy and digital sectors.

"We discussed ways to resume and revamp the India-Korea CEPA upgrade negotiations - Piyush Goyal"

New Delhi, April 20

Union Minister of Commerce and Industry Piyush Goyal met with his South Korean counterpart, Yeo Han-koo, Trade Minister, Ministry of Trade, Industry and Resources to discuss the resumption and modernization of the India-Korea Comprehensive Economic Partnership Agreement.

According to Goyal, the two leaders explored several avenues for deeper engagement, particularly in industrial cooperation, green energy, and digital trade. The meeting also focused on revamping the existing trade framework to better reflect current economic priorities and enhance bilateral ties.

"Delighted to meet Mr. Yeo Han-koo, Trade Minister, Ministry of Trade, Industry and Resources (MOTIR), Republic of Korea. We discussed ways to resume and revamp the India-Korea CEPA upgrade negotiations and explored opportunities for deeper cooperation in industrial cooperation, green energy and digital trade. We look forward to strengthening our partnership for greater mutual trade and investment," Goyal said on X.

The push for an upgraded trade pact follows a period of significant activity in bilateral commerce. Data released by the Ministry of External Affairs in 2025 showed that trade between the two nations reached USD 21.5 billion between January and October 2025.

During this ten-month window, India recorded an import volume of USD 16 billion and an export volume of USD 5.5 billion. These figures come after bilateral trade stood at USD 25.1 billion in 2024, having previously touched a record high of USD 27.8 billion in 2022.

India primarily exports light oils, aluminum, refined lead, and mineral fuels to the Republic of Korea. In return, South Korea's export basket to India consists largely of automobile parts, telecommunication equipment, hot rolled iron products, and mechanical appliances. To facilitate these trade flows, CBIC Chair and Korea Customs Commissioner previously launched the Electronics Origin Data Exchange System (EODES) to expedite information sharing regarding certificates of origin.

Investment from South Korea remains a cornerstone of the relationship, with the country ranking as India's 15th largest FDI investor. In 2024, South Korean investments totaled USD 929 million, with the manufacturing sector receiving the majority of these funds. Since 1980, cumulative investment from South Korea into India has reached USD 10 billion.

- ANI

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Reader Comments

S
Sarah B
Focusing on green energy and digital trade is the way forward. India has massive potential in renewables, and collaboration with a country like South Korea can accelerate our clean energy goals. Good move.
V
Vikram M
$10 billion cumulative investment since 1980 is good, but we can do much better. Hope the revamped agreement makes it easier for Korean companies to set up manufacturing plants here, creating jobs. Make in India should benefit.
P
Priya S
Our exports are mostly raw materials like light oils and aluminum, while we import finished goods like auto parts. We need to move up the value chain. The agreement should help Indian MSMEs integrate into Korean supply chains.
R
Rohit P
The EODES system for faster origin checks is a practical step. Reducing red tape is key for traders. Hope the new CEPA has more such tech-driven solutions to make doing business smooth.
K
Karthik V
With all due respect to the ministers, I hope the negotiations are transparent. Past trade deals have sometimes favored the other side. We need a balanced agreement that truly serves 'mutual' benefit, not just increased imports.
A
Ananya R
Love Korean culture and tech! Stronger ties mean more opportunities for students and professionals in IT

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