New Delhi: India and Korea on Thursday agreed to accelerate the India-Korea Comprehensive Economic Partnership Agreement (IK CEPA) upgrade negotiations after the Joint Declaration signed on 20 April 2026.
The Ministry of Ministry of Commerce & Industry said in a release today, that both sides expressed a commitment to conclude the CEPA upgrade negotiations in a time-bound manner.
Both countries aim to achieve a modernised and mutually beneficial agreement that supports the shared vision of balanced bilateral trade and enhanced cooperation.
The 12th round of IK CEPA upgrade negotiations was held in New Delhi from 25–27 May 2026.
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Both sides reviewed the progress achieved so far in the IK CEPA upgrade negotiations. The discussions were held in a constructive and cooperative spirit, reflecting the strong bilateral relationship and the “Futuristic Partnership” envisioned by Prime Minister Shri Narendra Modi and President of the Republic of Korea Mr. Lee Jae-myung.
Both sides acknowledged India’s bilateral trade deficit, which has risen significantly since the IK CEPA came into force in 2010, and agreed to address the issue within the overall IK CEPA framework.
During the current round, discussions were held on Trade in Goods (TiG), Trade in Services (TiS), Rules of Origin (RoO) and Origin Procedures (OP), Investment, and Sanitary and Phytosanitary (SPS) standards.
It was also decided to constitute sub-groups to discuss cooperation in the areas of digital trade, supply chain cooperation, and strategic industrial cooperation.
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The CEPA commits both countries to lower or eliminate import tariffs on a wide range of goods, over the next 10 years and expand opportunities for investments and exchanging services.
The Korea is phasing out or reducing tariffs on 90 percent of Indian goods over the next decade, while India will do so on 85 percent of Korean goods.
South Korean business was quick to recognize the great potential of the Indian market comprising of 1.2 billion people and a 300 million strong middle class, endowed with excellent buying power. Indian demand for a wide range of goods and services, is expanding rapidly consequent to the steady GDP growth of around 8% during the preceding five years.
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India’s GDP is poised to touch $ 2 trillion by the end of the year. It is expected that India would become the 3rd biggest economy in the world by 2030.
India will also benefit from CEPA, which allows temporary movement to Korea, of professional workers such as computer programmers, software engineers and English language teachers etc. 163 such professions would be allowed access to Korean services market.
The initial impact of CEPA has been very encouraging. Bilateral trade crossed $ 20.6 billion by the end of 2011, registering nearly a 70% increase over a two year period. Both sides have been conducting regular reviews of the implementation of CEPA .
Ends.
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