FTA boosts India-South Korea trade by 10%

Trade between India and South Korea grew by 10 per cent to $10.7 billion in 2010 after the two countries entered into a trade agreement in January last year.

According to an industry expert, trade between the two countries got a boost after the implementation of the Free Trade Agreement. It saw an increase of about 10 per cent in 2010 compared to the previous year.

"Due to the Korea-India Comprehensive Economic Partnership Agreement effected in January last year, the trade volume between the two countries reached USD 10.7 billion which is the biggest in history," said South Korea's Vice-Minister for Trade and Energy H E Park Young June on Tuesday in New Delhi.

The pact, which reduces tariffs on goods, facilitates services and investments between the two nations, has helped about 480 Korean firms, including Hyundai Motor and Samsung Electronics operating in India, he said at a Ficci function.

Following the implementation of the agreement, duties were either reduced or eliminated on about 90 per cent of goods traded between the coutries.

Great Eastern Energy Corp's Chairman and CEO Yogendra Modi said the bilateral trade is projected to reach $100 billion by 2020.