India and South Korea have been maintaining trade relations for decades. In an effort to boost economic ties, the India-Korea Preferential Trade Agreement (IKPTA) was signed in August 2009 and came into effect on January 1, 2010. The agreement aimed to reduce trade barriers and increase bilateral trade between the two countries.
The IKPTA offers preferential tariff concessions on a range of products exported from both countries. India and South Korea`s bilateral trade has grown significantly since the agreement was signed. In 2018, trade between the two countries reached $21.5 billion, and the two countries have set a target of achieving $50 billion by 2030.
The agreement covers a wide range of products, including chemicals, textiles, machinery, electronics, auto parts, and steel. Under the IKPTA, India and South Korea have exchanged tariff concessions on nearly 2,000 products. This has led to increased cooperation between the two countries in various sectors, including automotive, electronics, and pharmaceuticals.
The IKPTA has also led to an increase in foreign direct investment (FDI). South Korean companies have invested heavily in India, primarily in the electronics and automotive sectors. As a result, India`s manufacturing sector has received a boost, creating employment opportunities for its citizens.
The IKPTA has been a significant step towards strengthening India and South Korea`s economic ties. The agreement has helped both countries expand their export markets, reduce trade barriers, and increase bilateral trade. Moreover, this partnership has not only benefited the two countries but also the Asia-Pacific region as a whole.
In conclusion, the India-Korea Preferential Trade Agreement has had a positive impact on the economic relationship between India and South Korea. The agreement has led to the growth of bilateral trade between the two countries, as well as increased foreign investments in India. This partnership has further strengthened the geopolitical ties between the two nations, and opens opportunities for a more extensive cooperation in various sectors.