India and South Korea have held the 12th round of negotiations to upgrade the India-Korea Comprehensive Economic Partnership Agreement (CEPA), with New Delhi seeking to correct a trade imbalance that has widened sharply since the pact came into force in 2010.
The talks were held in New Delhi from 25 to 27 May, following the Joint Declaration signed on 20 April 2026 by Union Commerce and Industry Minister Piyush Goyal and Korean Trade Minister Yeo Han-koo during the State Visit of the President of the Republic of Korea to India.
The negotiations were co-chaired by Kapil Chaudhary, Joint Secretary, Department of Commerce, Ministry of Commerce and Industry, Government of India, and Park Geun-oh, Director General for Trade Agreement Policy, Ministry of Trade, Industry and Energy, Republic of Korea.
According to the Ministry of Commerce and Industry, both sides reviewed the progress achieved so far in the CEPA upgrade talks.
The discussions covered Trade in Goods, Trade in Services, Rules of Origin and Origin Procedures, Investment, and Sanitary and Phytosanitary standards.
The most significant issue in the talks was India’s widening trade deficit with South Korea.
The ministry said both sides acknowledged that India’s bilateral trade deficit had risen significantly since the CEPA came into force in 2010 and agreed to address the matter within the overall CEPA framework.
The concern is rooted in the way the earlier trade pact has played out.
The India-South Korea CEPA came into effect on 1 January 2010 and was meant to deepen trade, investment and economic cooperation.
However, the trade relationship has been marked by a widening imbalance, with India’s imports from South Korea consistently outweighing its exports.
India’s trade deficit with South Korea grew by 164.1 per cent from the pre-CEPA period of 2007-09 to 2020-22.
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Further, India’s exports to South Korea declined from $8 billion in 2021-22 to $6.65 billion in 2022-23 and $6.41 billion in 2023-24, while imports from South Korea rose from $17.5 billion in 2021-22 to $21.13 billion in 2023-24.
According to IBEF report in April 2026, South Korea ranked as India’s 20th largest export destination but 11th largest import source.
Bilateral trade stood at $18.35 billion in FY26 till November 2025, with India’s exports to South Korea at around $4.05 billion and imports from South Korea at $14.31 billion during the same period.
India’s imports from South Korea are led by higher-value industrial goods, including electrical machinery and equipment, iron and steel, nuclear reactors, boilers and machinery, plastics, mineral fuels and oils, organic chemicals, vehicles and auto components, and optical, medical and precision instruments. India’s exports include machinery, mineral fuels and oils, organic chemicals, aluminium, iron and steel, lead, copper and precious stones and metals.
Against this backdrop, the decision to form sub-groups on digital trade, supply chain cooperation and strategic industrial cooperation gives the CEPA upgrade talks a broader industrial dimension.
These areas are expected to become central to the modernisation of the pact as both countries look beyond traditional tariff issues.
The ministry said the discussions reflected the “Futuristic Partnership” envisioned by Prime Minister Narendra Modi and South Korean President Lee Jae-myung.
Both sides also reaffirmed their commitment to conclude the CEPA upgrade negotiations in a time-bound manner.
The objective, according to the ministry, is to achieve a modernised and mutually beneficial agreement that supports balanced bilateral trade and enhanced cooperation.
