Central Commerce Minister Piyush Goyal has reignited debate over the India-South Korea FTA, attributing India’s mounting trade deficit directly to flawed negotiations under the previous Congress regime. In a pointed social media update on Thursday, Goyal described the 2009 agreement, effective from 2010, as a classic case of bad bargaining that skewed trade dynamics against India.
Post-FTA data paints a stark picture: bilateral trade volumes jumped 92.7%, but Indian imports from Korea ballooned by 103.7%, leaving the country at a persistent disadvantage. Goyal’s remarks come amid ongoing efforts to rectify these imbalances through structured reviews.
The turnaround began in 2015 when PM Modi and his South Korean counterpart committed to renegotiating the CEPA. This led to ministerial declarations launching review talks, with 11 intensive rounds yielding an early harvest deal. Now, both sides are committed to advancing beyond prior agreements, focusing on mutual benefits in key sectors while tackling non-tariff hurdles and origin rules.
With negotiations targeted for completion by late 2026 or mid-2027, optimism is growing. Goyal highlighted visible progress in localizing Korean investments in India, fostering true ‘Make in India’ initiatives and curbing import reliance. This evolving partnership exemplifies how proactive diplomacy can transform historical missteps into opportunities for balanced growth, ensuring India’s trade interests are robustly protected.
