Union Minister of Commerce and Industry Piyush Goyal has said that India and the Republic of South Korea have decided to go beyond the earlier agreed aspects of their bilateral trade agreement and prioritise a more reciprocal and mutually beneficial partnership. In a statement on X, Mr Goyal said the renegotiation talks, with a strong focus on key sectors of shared interest while also addressing non-tariff barriers, are expected to conclude by the end of 2026 or, at the latest, by mid-2027. 

 

Mr Goyal said the earlier India-South Korea Free Trade Agreement, signed in 2009 by the UPA Government, was a poorly negotiated, imbalanced agreement tilted against India. He added that Prime Minister Narendra Modi has made consistent efforts since 2015 to amend the India-South Korea  Comprehensive Economic Partnership Agreement (CEPA) with a view to achieving both qualitative and quantitative growth in trade through an agreed roadmap. 

 

Mr Goyal further informed that consistent follow-up to enhance localisation and reduce import dependency of South Korean companies operating in India has begun to yield results. He said that a joint venture has been recently announced between JSW Steel and South Korea’s POSCO to establish a six-million-tonne-per-annum greenfield integrated steel plant in Odisha, with an estimated investment of 35,000 crore rupees. The minister added that this joint venture route of investment is unlike earlier investments by South Korean companies, which were in the form of wholly owned subsidiaries.

 

Stating that the approach of the Narendra Modi Government is to ensure fair trade, more balanced outcomes and a steady push to strengthen domestic manufacturing, Mr Goyal informed that India and South Korea have signed multiple MoUs with an aim to strengthen ties across trade, industry, strategic resources and clean energy sectors.