India and South Korea have set to achieve bilateral trade target of 50 billion USD by 2030. The target was set during the summit held in 2018. Recently, the foreign ministers of the respective countries met to discuss on terms to achieve the target.

How will the target be achieved?

• The target is to be achieved by giving fresh momentum to the CEPA (Comprehensive Economic Cooperation Agreement). Also, the governments will hold back-to-back discussions with their respective industrial leaders to boost the trade.
• During the meet, the ministers agreed to instruct their respective negotiating teams to meet on regular basis to address the trade issues. This will help to conclude CEPA terms.
• The countries are to negotiate regularly to address the supply chain resilience.

Current Scenario

The bilateral trade between the countries from January 2021 to June 2021 was 10.97 billion USD. This is 38% higher than 2020. During this period, the South Korean exports to India increased and imports increased. The exports from the country were 7.4 billion USD and it increased by 38.5% as compared to 2020. The imports were 3.6 billion USD and it increased by 37.4% as compared to 2020.

Trade Deficit

India is facing trade deficit with South Korea. When the exports to a country is less the imports, it is called trade deficit.

Agreements between the countries

The following agreements have been signed by the countries so far:

• Agreement on Trade Promotion and Economic and Technological Cooperation, 1974
• Agreement on Cooperation in Science and Technology in 1976
• Convention on Double Taxation Avoidance in 1985
• Bilateral Investment Promotion or Protection Agreement in 1996