India and South Korea Commit to Reducing Trade Imbalance

India and South Korea have pledged to tackle the growing trade deficit impacting their economic relationship. Within the framework of their bilateral trade agreement, efforts are underway to address these financial imbalances, according to India's commerce ministry.

Both countries have committed to forming sub-groups to enhance collaboration in digital trade, bolster supply chains, and promote strategic industrial partnerships. The joint decision came during the latest round of discussions aimed at upgrading the existing comprehensive economic partnership agreement (CEPA), originally implemented in January 2010.

Official reports indicate that India's trade deficit with South Korea has significantly risen since the inception of the agreement. To tackle this issue, substantial discussions revolved around trade in goods and services, investment protocols, as well as sanitary and phytosanitary standards.

Looking toward the future, both nations aspire to double their trade volume to USD 54 billion by 2030. Acknowledging current hurdles such as non-tariff barriers faced by Indian exporters, experts stress the need for streamlined regulations to facilitate market access in South Korea.

(With inputs from agencies.)