India, South Korea Form New Sub-Groups to Fast-Track CEPA Upgrade Talks
India and South Korea have agreed to create dedicated sub-groups on digital trade, supply chain cooperation, and strategic industrial collaboration as part of efforts to upgrade the existing Comprehensive Economic Partnership Agreement (CEPA). The decision was taken during the 12th round of negotiations held in New Delhi, which concluded on Wednesday. Officials from both countries discussed key areas including trade in goods and services, investment, rules of origin, and sanitary and phytosanitary standards.
The move comes amid concerns over India’s widening trade deficit with South Korea since the CEPA came into effect in 2010. According to the commerce department, India’s trade deficit with South Korea reached $15.15 billion in 2025, driven by imports of electrical machinery, iron and steel, nuclear reactors, mineral fuels, and organic chemicals. India imported goods worth $21.16 billion from South Korea last year, while exports stood at around $6 billion. Both nations acknowledged the imbalance and agreed to address the issue within the broader CEPA review framework.
The latest negotiations were co-chaired by Kapil Chaudhary, Joint Secretary at India’s commerce ministry, and Park Geun-oh, Director General for Trade Agreement Policy at South Korea’s trade ministry. The two sides reaffirmed their commitment to concluding the CEPA upgrade talks in a time-bound manner to create a more balanced and mutually beneficial trade partnership. The review process had gained momentum following South Korean President Lee Jae-myung’s visit to New Delhi earlier this year.
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