Press Information Bureau

Government of India

Ministry of Commerce & Industry

22-February-2011 16:16 IST India-Korea trade US $ 11,997.12 Million during 2009-10 – to Double in Next Five Years: Anand Sharma

Shri Anand Sharma, Union Minister of Commerce & Industry, in a meeting with Mr. Park Young June, Vice Minister of Knowledge Economy of South Korea, here today, said that the bilateral trade between India and Korea has gathered momentum during the last few years. He further said that during the year 2009-10 bilateral trade was US $ 11,997.12 million and hoped the bilateral trade to further rise and double in the next five years. “Compared with 2001-02 when total bilateral trade turnover was US $ 1,612.74 million, the total trade has increased by more than six times”, he added.

During the interaction, Shri Sharma said that India and Korea share the view that a strong multilateral trading system is vital for ensuring future growth in the world economy and committed to continue their cooperation to achieve an ambitious, balanced and comprehensive conclusion of the Doha Development Round as early as possible.

Shri Sharma said that last month we held the first meeting of the Joint Committee at Ministerial level to review the implementation of India-Korea CEPA. He said that after coming into force India-Korea CEPA, bilateral trade has increased by more than 40% as compared to the previous year and added that CEPA is an important milestone in our bilateral trade & Economic Relations. It is expected that CEPA will unlock our complementary strengths and enhance the scope for mutual economic growth. “CEPA will create business opportunities for Korean Companies and would simultaneously provide opportunities to Indian professionals from software, engineering, finance and telecommunication sectors to participate and contribute to Korea’s Services sector. We look forward to visible opening of the IT enabled services market in Korea for our reputed IT companies”, Shri Sharma informed.

Major items of India’s exports to Korea were: cotton yarn, fabrics, made-ups; gems & jewellery; machinery & instruments, ferro-alloys; organic & inorganic chemicals etc. Major items of India’s imports from Korea were: iron & steel; electronic goods, transport equipments, project goods; organic chemicals etc. Total foreign direct investment (FDI) inflows received from South Korea were US $ 523.88 million. Main sectors attracted FDI inflows were in the area of real estate activities, generation of power, semi-finished iron & steel products; telephone communication services etc.

 

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DS/MRS

Trade liberalisation through CEPA expands bilateral commerce and opens services and investment opportunities between India and Korea. The Comprehensive Economic Partnership Agreement (CEPA) has been implemented and reviewed at ministerial level; post implementation trade has risen substantially, with CEPA presented as the principal mechanism to unlock complementary strengths, create business opportunities for Korean companies, and expand market access for Indian services providers in IT, engineering, finance and telecommunications, alongside notable inbound foreign direct investment in real estate, power, steel products and telecommunications services.