India, South Korea in talks to address trade deficit; 'great scope' for cooperation in Green Hydrogen: Indian Envoy

By Vishi Adhana

Seoul (South Korea), May 26 (ANI) India and South Korea are actively engaging in discussions to address the growing trade imbalance and review of the Comprehensive Economic Partnership Agreement (CEPA) is underway to ensure a more fair and balanced trade relationship, Indian Ambassador to South Korea, Amit Kumar said on Monday.

Speaking exclusively to ANI, Ambassador Kumar underlined the need for a balanced trade relationship and said both countries are exploring new avenues of economic cooperation, including green hydrogen and advanced manufacturing.

"We did conclude a Comprehensive Economic Partnership Agreement in 2010. It has led to an increase in trade, of course, there is a growing trade deficit with Korea. I think part of it is due to the structure and level of our economies at the moment," the envoy said.

He added, "As we expand manufacturing in India, we'll have more things to export to Korea. The other part deals with issues of market access and non-tariff barriers, and we are in discussions with the Korean government to address these and ensure a more fair and balanced trade relationship."

The CEPA, operational since 2010, has coincided with a significant widening of India's trade deficit with South Korea, as Indian exports fell from $8 billion in 2021-22 to $6.41 billion in 2023-24, even as imports from South Korea surged.

This growing imbalance has prompted calls for a review to make the agreement more equitable and boost India's export competitiveness.

Ambassador Kumar emphasized that South Korea is looking to countries like India to support its ambitions in green hydrogen due to its geographic constraints in renewable energy generation.

"South Korea is among the top four or five nations in green hydrogen technologies, but they don't have much renewable energy due to geographical limitations. Therefore, they are looking at countries like India to forge green hydrogen partnerships," he said.

"Both countries have very ambitious roadmaps for the deployment of green hydrogen. I see this as a promising area for future collaboration," he added.

South Korean investments in India are steadily rising, with the ambassador citing Hyundai Motor Group's recent commitment of USD 2.45 billion to India's electric vehicle ecosystem.

"This investment involves the manufacturing of electric vehicles, setting up secondary battery units, and developing charging infrastructure," he noted.

He also highlighted growing interest from Korean companies in sectors like shipbuilding, electronics, semiconductors, and medical devices, calling them "priority areas" for bilateral cooperation.

India-Korea trade currently stands at around USD 25 billion, but the ambassador believes significant room exists for growth.

"We are also undertaking around 15 joint research projects and expanding into new areas of scientific collaboration," he said, adding that exchanges in science and technology and people-to-people contacts are also being strengthened.

Addressing the demographic challenges faced by South Korea, Ambassador Kumar pointed to the growing presence of Indian students, professionals, and researchers in the country.

"We are in consultation with the ROK government to ensure that there are safe and legal pathways through mechanisms like mobility and migration partnerships. This is an area we intend to continue developing," he said. (ANI)

(The story has come from a syndicated feed and has not been edited by the Tribune Staff.)