With an aim to double bilateral trade from the current $27 billion to $54 billion by 2030, the Commerce Ministry has said India and South Korea agreed to address the widening trade deficit within the broader framework of their bilateral trade pact. The move is likely to pave the way for a more balanced trade relationship between the two countries. The issue figured during the 12th round of negotiations on upgrading the existing Comprehensive Economic Partnership Agreement (CEPA), which was implemented in January 2010. Both sides also decided to set up dedicated sub-groups to strengthen cooperation in areas such as digital trade, supply chains, and strategic industrial collaboration.
Further, discussions were held on trade in goods, trade in services, rules of origin and origin procedures, investment, and sanitary and phytosanitary (SPS) standards. The negotiations were co-chaired by Kapil Chaudhary, Joint Secretary, Department of Commerce, and Park Geun-oh, Director General for Trade Agreement Policy, Ministry of Trade, Industry and Energy, Republic of Korea.
India's exports to Korea increased 3.31 per cent to $6 billion in 2025-26 from $5.81 billion in 2024-25. Imports grew 1.38 per cent to $21.35 billion in 2025-26 from $21 billion in 2024-25. The trade deficit widened to $15.35 billion in 2025-26, from $15.2 billion in 2024-25. The deficit stood at $14.71 billion in 2023-24, up from $14.57 billion in 2022-23 and $9.4 billion in 2021-22. The ministry said that both sides reviewed the progress achieved so far in the negotiations.
