Trade Agreement Between India And Korea

April 13, 2021

Korea and India signed a Comprehensive Economic Partnership Agreement in Seoul on 7 August 2009 and came into force on 1 January 2010. The EPA is Korea`s first free trade agreement with a BRICS member. The trade agreement, reached after negotiations of more than three years and twelve cycles, obliges the two countries to reduce or eliminate import duties on a wide range of products over the next eight years and helps to expand investment and trade opportunities in goods and services. Korea should eliminate or reduce tariffs on 90% of Indian exports, while India would eliminate or reduce tariffs on 85% of Korean exports. 15. Among the Korean companies that invested in India, Hyundai Motor Group, Samsung Electronics and LG Group were the leaders. Hyundai Motors has built in Tamil Nadu an automobile factory with a capacity of more than 650,000 cars per year. Hyundai Motors India Ltd, an Indian subsidiary of Hyundai Motors, would receive the next $1.05 billion investment tranche for the development of the Sriperbudur unit for the manufacture of electric vehicles. Kia Motors, a sister company of the Hyundai Group, has announced a $1.6 billion investment in two phases to build two production units in Ananthapur, Andhra Pradesh. The units will have a production capacity of 300,000 cars, and production is expected to begin in 2019. Samsung Electronics has two plants, one in Noida and the other in Sriperumbudur (TN) and five research and development centers. Samsung has announced a $780 million investment to expand its Noida plant for the manufacture of smartphones and consumer electronics. The Noida plant is the world`s largest mobile production unit and doubles its current capacity from 68 million to 120 million mobile phones by 2020.

LG Electronics operates two plants in India, one in Noida and one in Pune, with a research and development centre in Bangalore. As part of a partnership with the Vedanta Group, the LG Group will build the first LCD manufacturing facility in Maharashtra. POSCO has completed the construction of its first steelworks in Maharashtra and is building another JOINT with the Uttam Galva Group. The former required a total investment of $240 million for galvanized panel installations, whose production was to meet not only that of appliance manufacturers, but also the highly galvanized needs of car manufacturers in and around Pune. A Korean textile leader, youngone Corporation – Bangladesh`s largest investor, has signed a $300 million factory in Warangal with a capacity of 10,000 jobs with the Telangana government. Hyosung Corporation, head of spandex Global, announced that it would invest $450 million in a spandex production site on the green prairie of Aurangabad Industrial City, Maharashtra, with an initial capacity to create 1000 jobs. Lotte confectionery has spread through the acquisition of Havmor, the Gujrat-based unit, in addition to its earliest investment in Chennai and recently in Rohtak. 16. Technological cooperation: an intergovernmental agreement was reached on 21 April 2017 between the Department of Defence Production, the Department of Defence of India and the Ministry of Defence Acquisition Program Administration of ROK as a partner in the shipbuilding of the armed forces. Hindustan Shipyard Ltd. (HSL) will work with Hyundai Heavy Industries Co.