Union Minister of Commerce Piyush Goyal and South Korean Minister of Trade Yeo Han-koo exchange an MoU in New Delhi on Monday | Photo Credit: KAMAL KISHORE

India has invited South Korea to negotiate a fresh bilateral trade agreement to deepen economic ties. Alongside trade talks, both nations discussed the establishment of a large-scale industrial township, a dedicated enclave in India specifically for Korean industry.

The proposal was made during talks between Commerce Minister Piyush Goyal and his Korean counterpart, Yeo Han-koo, who is accompanying President Lee Jae-myung on his official visit to India. The two countries already have a comprehensive economic partnership agreement (CEPA). It was implemented in January 2010. Pointing to the shifting global order, Goyal noted that “a lot of water has flown down the Ganga” since the original CEPA was signed 16 years ago, suggesting that a more contemporary framework is needed.

Two-way trade

The bilateral dialogue centered on doubling two-way trade to $54 billion by 2030 and narrowing a widening trade deficit, which reached $15.19 billion in 2024-25. Addressing the India-Korea Business Forum, Goyal also revealed plans for a dedicated Korea-specific industrial township in India. This enclave would feature “plug-and-play” infrastructure to help Korean firms tap into India’s domestic market and its expanding network of global FTAs.

President Myung emphasised India’s role as a global economic pillar and called for deeper collaboration in high-tech industries, artificial intelligence, and the shipping sector. Both nations have agreed to a “mission-mode” approach to address non-tariff barriers and streamline rules of origin to achieve a more balanced economic partnership.

He said India, as the world’s fourth-largest economy and home to 1.4 billion people, stands as a key pillar of the global economy. He noted that there is significant scope to further expand business and trade, adding that bilateral trade has considerable room for growth and, with sustained efforts, is expected to double alongside ongoing negotiations on the Comprehensive Economic Partnership Agreement.

He emphasised the need to prepare high-tech industries for the future through collaboration and by leveraging India’s strengths in artificial intelligence. He further stated that cooperation in the shipping sector will be strengthened. He also underlined the importance of moving beyond economic cooperation to build strong people-to-people trust between the two countries.

Published on April 20, 2026