India, South Korea target doubling trade by 2014

January 20th, 2011 - 7:57 pm ICT by IANS  

New Delhi, Jan 20 (IANS) India and South Korea look to doubling their bilateral trade to $30 billion by 2014 as a comprehensive economic partnership agreement between the two countries liberalises tariff regime, Commerce and Industry Minister Anand Sharma said Thursday. “As exporters on both sides develop a better understanding of the advantages presented by this agreement through a liberal tariff regime, we should easily be in a position to achieve the trade target of $30 billion by 2014,” Sharma said at the India-South Korea Business Forum here.

Bilateral trade between India and South Korea surged 44 percent to $15 billion in 2010 after the two countries signed a comprehensive economic pact.

The Comprehensive Economic Partnership Agreement (CEPA) between India and South Korea was signed in August 2009. The agreement came into force from Jan 1, 2010.

“We view the agreement with the Republic of Korea to serve as an economic bridge between South Asia and the larger east Asian economy, paving the way for a larger regional economic integration across the Asian continent,” Sharma said after meeting South Korean Trade Minister Kim Jong-Hoon here.

India and South Korea Thursday held the first joint ministerial committee meeting here to review of the Economic Partnership Agreement.

“It was decided that the next Ministerial Joint Committee meeting would be convened in Seoul in 2012,” according to a joint statement issued after the meeting. The Korean minister is leading a high-level delegation to India comprising of business leaders, professionals and government officials.

Sharma also asked South Korean companies to invest in India’s infrastructure sector.

He said foreign direct investment (FDI) flow in India is likely to reach $250 billion in the next five years.

During the last three years, India received over $100 billion FDI.

“I would like to particularly mention that Delhi-Mumbai Industrial Corridor (DMIC) project represents a whole range of opportunity for establishing new urban townships, investment regions, logistic hubs in an economically vibrant part of India. We welcome Korean business community to join hands with us in our endeavour to develop this corridor,” he added.

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