India-Korea Free Trade Agreement Notification

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India-Korea Free Trade Agreement Notification: A Step towards Enhancing Bilateral Trade Relations

India and Korea have a long history of cultural and economic exchange dating back to ancient times. In recent years, the two countries have witnessed a surge in their trade relations, with both nations seeking to enhance their economic partnership. In this regard, the India-Korea Free Trade Agreement (IKFTA) has emerged as a significant milestone in bolstering bilateral trade ties. The IKFTA notification, which came into effect on January 1, 2010, has played a crucial role in facilitating trade between the two countries by eliminating various trade barriers, enhancing market access, and fostering a more enabling environment for trade.

The IKFTA notification encompasses a range of goods and services, including agriculture, industrial products, electronics, and automobiles, among others. Under the agreement, Korea will eliminate tariffs on 93% of the total tariff lines, while India will remove tariffs on 75% of the total tariff lines. This move is expected to provide a significant boost to trade between the two countries, as it will help increase the flow of goods and services across borders and enhance the competitiveness of businesses in both nations.

The IKFTA notification has also been instrumental in fostering a more conducive environment for investment. The agreement offers a framework for promoting investment flows between the two countries, enabling investors to enjoy greater protection and better market access. Furthermore, it facilitates the transfer of technology, skills, and knowledge, thereby promoting innovation and development in both countries.

The IKFTA notification has several benefits for both India and Korea. For India, it offers access to Korea`s advanced technology, expertise, and capital, enabling Indian companies to enhance their competitiveness and expand their market share. Additionally, it provides Indian exporters with greater access to the Korean market, which is the world`s 11th largest economy. The agreement is also expected to boost India`s GDP by 0.5% over the long term, according to estimates by the Confederation of Indian Industry (CII).

For Korea, the IKFTA notification offers access to India`s fast-growing market, which has a population of over 1.3 billion people. It also provides Korean companies with greater opportunities to invest in India`s infrastructure, energy, and manufacturing sectors, thereby enhancing Korea`s economic presence in the region. Furthermore, the IKFTA enhances Korea`s status as a trading hub in Asia, given its existing free trade agreements with China, the US, ASEAN, and others.

In conclusion, the India-Korea Free Trade Agreement Notification is a significant step towards bolstering economic ties between the two countries. The agreement offers numerous benefits for both nations, including increased trade flows, investment, and economic growth. With the IKFTA notification, India and Korea have set a strong foundation for further deepening their bilateral economic partnership and charting a course towards greater prosperity for their citizens.

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