India and South Korea are likely to hold negotiations on May 25 to review their Comprehensive Economic Partnership Agreement (CEPA), amid Indiaโs push to address concerns over the widening trade deficit with Seoul, PTI reported.The CEPA between the two countries came into force in January 2010. โThe officials of the two countries are meeting on May 25 for the FTA review,โ an official told PTI.The discussions assume significance as India has proposed negotiating a fresh bilateral trade agreement to modernise the existing pact and make trade relations more balanced.
Commerce and Industry Minister Piyush Goyal had raised the issue during a bilateral meeting last month with his South Korean counterpart Yeo Han-koo.Goyal has repeatedly flagged concerns over the growing trade imbalance between the two countries.Indiaโs exports to South Korea declined 9.3 per cent to $5.81 billion in 2024-25 from $6.41 billion in 2023-24. Imports from Korea dipped marginally by 0.34 per cent to $21 billion during the same period.The trade deficit widened to $15.19 billion in 2024-25 from around $8 billion in 2020-21.India and South Korea have set a target to double bilateral trade to $54 billion by 2030 from the current level of around $27 billion, while seeking a more balanced trade relationship.