India, Korea Discuss CEPA Upgrade & Strategic Investments At Economic Partnership Dialogue 2026

(MENAFN- KNN India) New Delhi, Apr 21 (KNN) The Korea Institute for International Economic Policy (KIEP) Delhi Office hosted the 'Korea-India Economic Partnership Dialogue 2026' in New Delhi on Tuesday, bringing together policymakers, industry leaders and experts to deliberate on strengthening bilateral economic ties between India and South Korea.

The discussions reviewed bilateral trade patterns, sectoral composition and utilisation of the India-Korea Comprehensive Economic Partnership Agreement (CEPA), alongside India's broader free trade agreement strategy.

Participants highlighted the need to deepen cooperation and align trade frameworks with emerging global trends.

Key challenges identified included tariff and non-tariff barriers, regulatory constraints and the impact of geopolitical developments involving United States, Iran and Israel on global supply chains.

Expanding Scope of Cooperation

Deliberations on CEPA upgrade focused on improving market access and expanding cooperation into emerging areas such as digital trade and green economy sectors.

The dialogue also explored opportunities in high-growth industries, including semiconductors, electric vehicles (EVs), renewable energy, green hydrogen, shipbuilding and critical minerals.

Participants emphasised the role of foreign direct investment (FDI) in driving industrial collaboration, strengthening value chains and enabling technology transfer. Building resilient supply chains through joint ventures and strategic partnerships was identified as a key priority.

Key Issues and Strategic Concerns

Panel discussions highlighted several structural concerns, including limited Korean investment in India's manufacturing sector, challenges in linking production-linked incentive (PLI) schemes to global value chains and relatively lower competitiveness in certain strategic industries.

Participants also discussed comparative tariff structures, noting that duties on Korean imports are higher than those applied to countries such as Vietnam, Thailand and Chile.

Way Forward: Strengthening Strategic Partnership

Stakeholders called for a shift from traditional market access negotiations towards deeper strategic cooperation, including collaboration in sectors such as space, defence, hydrocarbons and pharmaceuticals.

Recommendations included developing a long-term Korea-India strategic industry roadmap, improving policy-level coordination, addressing non-tariff barriers and exploring mechanisms such as currency swap agreements to reduce dependence on the US dollar.

Outlook

The dialogue underscored the need to upgrade CEPA into a more comprehensive and future-ready agreement, while fostering trust, enhancing investment flows and building integrated value chains to support sustained bilateral economic growth.

(KNN Bureau)

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