India, South Korea agree to upgrade IK CEPA to fix bilateral trade deficit
Both sides acknowledged India’s trade deficit and agreed to address it under the IK CEPA framework
India and the Republic of Korea have agreed to address the India’s bilateral trade deficit, which has risen significantly since the India-Korea Comprehensive Economic Partnership Agreement (IK CEPA).
The 12th round of negotiations for upgrading the IK CEPA was held in New Delhi from 25 to 27 May 2026. The discussion followed a Joint Declaration signed on 20 April 2026 during the South Korean President’s state visit to India.
Pursuant to the Joint Declaration signed by Shri @PiyushGoyal , Union Minister for Commerce and Industry and Mr. Yeo Han Koo, Trade Minister, Republic of Korea during the State Visit of H.E. President LEE Jae Myung to India, wherein both sides committed to accelerate the… pic.twitter.com/DeqgtWUBlg
— Dept of Commerce, GoI (@DoC_GoI) May 27, 2026
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".
Furthermore, both countries acknowledged India’s bilateral trade deficit 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.
India and Korea reaffirmed their commitment to conclude the CEPA upgrade negotiations in a time-bound manner, with the objective of achieving a modernised and mutually beneficial agreement that supports the shared vision of balanced bilateral trade and enhanced cooperation.
Earlier, on 21 April, India and the Republic of Korea (ROK) adopted a Joint Strategic Vision for the India-ROK Special Strategic Partnership to expand bilateral economic ties and security cooperation.
The Ministry of External Affairs (MEA) had confirmed that Prime Minister Narendra Modi and President of the Republic of Korea H.E. Lee Jae Myung welcomed the conclusion of a Memorandum of Understanding (MOU) on the India-ROK Industrial Cooperation Committee, which focuses on critical sectors including semiconductors, shipbuilding, secondary batteries and supply chain resilience for strategic resources.
