Friday, January 17, 2014: Commerce Ministry has commissioned a study for assessing the impact of free trade agreement with South Korea. India has had a trade deficit of $9 billion in 2012-13. The issue of broadening trade deficit was brought up by Commerce and Industry Minister Anand Sharma with South Korean counterpart Yoon Sang-Jick at a meeting today.
As stated on Economic Times, “Although bilateral trade is increasing between the two countries, trade deficit is a case of concern for India. Both the sides should identify sectors which can address this problem,” Sharma told Sang-Jick during the meeting.
India and South Korea brought in place the Comprehensive Economic Partnership Agreement (CEPA) in January 2010. The bilateral trade favours South Korea. Trade deficit has increased from $5.1 billion in 2009-10 to $8.89 billion in 2012-13.
According to an official, the Department of Commerce has asked for a study for assessing the impact of the CEPA. Sharma has also sought investments from South Korea in chip manufacturing and computer hardware. The investments in these areas will assist India in reducing import bill of electronic items.
India has imported electronic products amounting to $33 billion in the last fiscal with it consuming semiconductor products worth about $7 billion each year.
Both sides have also agreed to set up a joint CEO forum apart from a ministerial committee for overseeing the economic engagements. The bilateral trade between the two countries stands at $17.3 billion in 2012-13.
