Trade Agreement Between India And Korea

In less than forty years, Korea has made remarkable progress in transforming its economy into an export-oriented force package. Its GDP exceeded US$1 trillion out of just US$2.3 billion in 1962 and is the 12th largest in the world in 2017, according to GDP. The per capita income in 2017 was 29,745 $US. Services, manufacturing and agriculture account for 54.1%, 26.3% and 2.1% of GDP respectively. (Source: Bank of Korea). The economic transformation was achieved despite Korea`s heavy reliance on natural resources such as crude oil and etheric minerals. In 1996, Korea became the 29th member of the Organisation for Economic Co-operation and Development (OECD). Korea is now the 5th largest exporter and the 9th largest importer in the world as of 2017. Exports rose 15.8 percent to $US 573.7 billion and imports also fell 17.8 percent to $US 478.5 billion. More than 40% of Korean trade takes place with China, the United States and Japan. Korea`s other major trading partners are Vietnam, Hong Kong, Saudi Arabia, Taiwan, Australia, Germany, Singapore and Indonesia.

With $402.5 billion (July 2018), Korea has the 9th largest foreign exchange reserve in the world (source: Bank of Korea). It has the largest naval industry in the world and is one of the best manufacturers of semiconductors and electronic products. Korea, a major automaker, produces more than 4.5 million vehicles a year. As the trade balance remains favourable to South Korea, the Ministry of Commerce convened a meeting of Export Promotion Councils (ECCs) and industrial captains on September 11 to find problems that hinder India`s exports to the East Asian nation. “The ministry wants to know if there are any trade barriers or certain testing standards that hinder the growth of exports from India,” he added. The CEPA bilateral trade pact, which came into effect in 2010, boosted trade and investment between the two countries, but Korea had a clear lead. In 2019, exports from India amounted to $5.6 billion, while exports from South Korea amounted to $15.1 billion. ROK has offered India $10 billion in financing (development assistance and loans) for infrastructure projects.

Recognizing the importance of the marine industry in bilateral relations, PM also visited Hyundai Heavy Industries` shipyard in Ulsan. The heads of state and government of the two countries spoke at the inaugural meeting of the Indo-Korean CEO Forum to promote bilateral economic cooperation, while the prime minister also met with the leadership of major Korean conglomerates. The “Korea Plus” office was established as a single window in India to address all the issues that Korean companies raised as a result of the pm visit. President Moon Jae-in`s state visit to India from 10 to 12 July 2019 strengthened bilateral commitment to a shared vision of people, peace and prosperity. A target of $50 billion in bilateral trade, to be achieved by 2030, was set by Prime Minister Modi and President Moon during the visit. In order to further strengthen bilateral relations, Prime Minister Narendra Modi visited ROK from 21 to 22 February 2019 and had a number of bilateral and trade engagements. Prime Minister Modi unveiled a bust of Mahatma Gandhi at the prestigious Yonsei University, around the 150th. Celebrate Mahatma Gandhi`s birthday during this visit, and also received the Seoul Peace Prize which was awarded to him by the Seoul Peace Prize Foundation. The agreement will ease restrictions on foreign direct investment. Companies can own up to 65% of a company in the other country. [8] Both countries avoided problems of agriculture, fishing and mining and decided not to reduce tariffs in these areas. This is due to the very sensitive nature of these sectors in the countries concerned.

[9] In 2008, trade between India and South Korea amounted to $15.6 billion. This is a significant increase from 2002, when total trade was $2.6 billion. [3] The Korea Institute for International Economic Policy estimates that the agreement will increase trade between the two countries by $3.3 billion. [2] Korea and India adopted, on 7 January 7, a Comprehensive Economic Partnership Agreement was signed in Seoul on 1 August 2009 in Seoul, which was operational with effect from 1 January 2010. . . .