Intro: The Union Commerce and Industry Minister alleged that the deal created imbalance and widened India’s trade deficit
New Delhi
Commerce and Industry Minister Piyush Goyal on Thursday criticised the India–South Korea Free Trade Agreement (FTA) signed during the Indian National Congress rule, calling it “poorly negotiated” and unfavourable to India.
In a post on social media platform X, Goyal said the trade pact signed in 2009 and implemented in 2010 led to a 92.7 per cent rise in bilateral trade, but India’s imports from South Korea rose by 103.7 per cent, increasing the trade deficit.
He said the agreement did not benefit India and claimed the current government has taken steps to correct the imbalance. Goyal noted that in 2015, Prime Minister Narendra Modi and South Korea’s President agreed to begin talks to amend the India–Korea Comprehensive Economic Partnership Agreement.
He said eleven rounds of talks have already taken place, and both countries are now working toward a more balanced partnership. The revised agreement is expected to be completed by the end of 2026 or by mid-2027.
Goyal also said efforts to increase local manufacturing by Korean firms in India are showing results. He highlighted a joint venture between JSW Steel and POSCO to build a steel plant in Odisha with an investment of Rs 35,000 crore.
He added that several agreements were signed to improve trade, clean energy cooperation, supply chains, and MSME support. Goyal said the government’s goal is to ensure fair trade, strengthen local industries, and protect national interests through balanced global partnerships.