India and South Korea Advance CEPA Upgrade Talks in New Delhi

India and South Korea have taken another significant step toward strengthening their economic partnership by concluding the 12th round of negotiations to upgrade their Comprehensive Economic Partnership Agreement (CEPA). Held in New Delhi, the discussions reflect both nations’ intent to modernise their trade pact and address emerging economic challenges.

12th Round of CEPA Talks Concludes in New Delhi

The latest round of negotiations between India and the Republic of Korea took place from May 25 to 27 in New Delhi. The talks are part of ongoing efforts to upgrade the existing India-Korea Comprehensive Economic Partnership Agreement (IK CEPA), which has been in force since 2010.

Both countries reiterated their shared commitment to building a balanced, forward-looking trade framework that aligns with evolving global economic dynamics.

Background: Push for CEPA Modernisation

The current phase of negotiations follows the Joint Declaration signed on April 20, 2026. The agreement was formalised during the State Visit of the South Korean President to India, where Union Commerce and Industry Minister Piyush Goyal and South Korea’s Trade Minister Yeo Han-koo agreed to accelerate discussions on upgrading the CEPA.

This renewed push underscores the importance both countries place on revitalising their economic engagement and unlocking untapped trade potential.

Key Officials Leading the Negotiations

The 12th round of talks was co-chaired by senior trade officials from both sides:

• Kapil Chaudhary, Joint Secretary, Department of Commerce, India
• Park Geun-oh, Director General for Trade Agreement Policy at South Korea’s Ministry of Trade, Industry and Energy (MOTIE)

Their leadership ensured structured and productive discussions, with a focus on achieving mutually beneficial outcomes.

Constructive Dialogue Reflects Strong Bilateral Ties

According to India’s Ministry of Commerce and Industry, the negotiations were conducted in a constructive and cooperative environment. This reflects the growing strength of India-South Korea relations, which have been elevated under the vision of a “Futuristic Partnership.”

This strategic framework, championed by Prime Minister Narendra Modi and South Korean President Lee Jae-myung, aims to deepen economic collaboration and foster innovation-driven growth.

Addressing Trade Imbalance Concerns

One of the critical issues discussed during the negotiations was the widening trade imbalance between the two nations. Since the CEPA came into effect in 2010, India has experienced a growing trade deficit with South Korea.

Both sides acknowledged this concern and agreed to address it within the broader CEPA upgrade framework. The goal is to create a more equitable trade structure that benefits both economies while maintaining openness and competitiveness.

Focus Areas of the Latest Negotiations

Trade in Goods and Services

Discussions covered ways to improve market access, reduce tariffs, and facilitate smoother trade in goods and services. Both countries explored opportunities to expand exports and enhance bilateral trade volumes.

Rules of Origin and Procedures

The negotiators examined rules of origin provisions to ensure that trade benefits are extended to genuinely originating goods. Simplifying procedures and improving compliance mechanisms were key priorities.

Investment and Business Environment

Investment-related discussions focused on creating a more favourable climate for cross-border investments. Enhancing investor confidence and reducing regulatory barriers were highlighted as essential steps.

Sanitary and Phytosanitary Standards

Both sides also deliberated on aligning sanitary and phytosanitary measures to facilitate agricultural and food product trade while ensuring safety and quality standards.

New Sub-Groups to Explore Emerging Areas

To broaden the scope of cooperation, India and South Korea agreed to establish specialised sub-groups focusing on emerging and strategic sectors:

Digital Trade

With the global economy becoming increasingly digital, both countries aim to collaborate on digital trade frameworks, data flows, and e-commerce regulations.

Supply Chain Cooperation

Strengthening supply chain resilience has become a priority in the post-pandemic world. The two nations plan to explore joint strategies to ensure stable and diversified supply chains.

Strategic Industrial Collaboration

The sub-groups will also examine opportunities for industrial partnerships in key sectors, fostering innovation, technology transfer, and manufacturing growth.

Commitment to Time-Bound Negotiations

India and South Korea have reaffirmed their intention to conclude the CEPA upgrade negotiations within a defined timeframe. Both sides emphasised the importance of delivering a modern, comprehensive agreement that reflects current economic realities.

The upgraded CEPA is expected to enhance bilateral trade, improve market access, and create new opportunities for businesses in both countries.

Significance of CEPA Upgrade for Bilateral Trade

The modernisation of the CEPA holds significant implications for India-South Korea economic relations. A revised agreement could:

• Boost trade volumes between the two countries
• Address long-standing trade imbalances
• Encourage investments across sectors
• Strengthen supply chain integration
• Promote innovation and digital cooperation

By aligning trade policies with contemporary economic trends, the upgraded CEPA could serve as a catalyst for long-term growth.

Conclusion

The successful conclusion of the 12th round of CEPA upgrade talks marks an important milestone in India-South Korea relations. With both nations committed to a balanced and future-ready agreement, the negotiations are expected to pave the way for deeper economic integration.

As discussions progress, the upgraded CEPA has the potential to unlock new opportunities, strengthen trade ties, and reinforce the strategic partnership between the two economies.