India and Korea have a rich history of bilateral trade agreements and a strong trade relationship that dates back several decades. These agreements have not only fostered economic growth but have also strengthened diplomatic ties between the two nations.
Category : India-Korea Bilateral Trade Agreements |
Sub Category : Bilateral Trade Relations Posted on 2023-07-07 21:24:53
India and Korea have a rich history of bilateral trade agreements and a strong trade relationship that dates back several decades. These agreements have not only fostered economic growth but have also strengthened diplomatic ties between the two nations.
The relationship between India and Korea has witnessed significant growth in recent years. In 2009, the two countries signed the Comprehensive Economic Partnership Agreement (CEPA), which aimed to boost bilateral trade and investment. The CEPA has played a pivotal role in eliminating trade barriers and facilitating a favorable business environment for both Indian and Korean companies.
The bilateral trade between India and Korea has seen an impressive increase over the years. In 2019, the total trade between the two countries exceeded $21 billion. India's major exports to Korea include petroleum products, gems and jewelry, iron ore, chemicals, and textiles. On the other hand, Korea exports automobiles, machinery, electrical machinery, iron, and steel to India.
The CEPA has provided a platform for Indian companies to expand their presence in the Korean market. Many Indian pharmaceutical, automobile, and IT companies have set up their operations in Korea, leading to job creation and technology transfer. Similarly, Korean companies have made significant investments in India, particularly in sectors such as electronics, automobiles, and infrastructure.
One of the key areas of cooperation between India and Korea is the manufacturing sector. India's "Make in India" initiative and Korea's "New Southern Policy" have laid the foundation for increased collaboration in manufacturing and technology exchange. The two countries have identified specific sectors such as electric vehicles, renewable energy, biotechnology, and shipbuilding, where they can collaborate and mutually benefit.
Apart from trade in goods and services, there has been a rise in investments between the two countries. Korean investments in India have grown exponentially, with major Korean conglomerates like Samsung and LG establishing their manufacturing facilities in India. On the other hand, Indian companies have also invested in Korea, primarily in the IT and software services sector.
To further enhance bilateral trade relations, both countries have taken steps to simplify trade procedures and promote investments. India has implemented measures such as the introduction of Goods and Services Tax (GST) and the establishment of a dedicated helpdesk for Korean investors. Korea, on the other hand, has set up a special task force to support Indian companies in entering the Korean market.
In conclusion, the bilateral trade agreements between India and Korea have been instrumental in promoting economic cooperation and facilitating trade between the two nations. The CEPA has played a crucial role in eliminating trade barriers and fostering a favorable business environment. With the growing interest in various sectors like manufacturing, technology, and investments, India and Korea are poised to strengthen their trade relationship and take it to new heights.
