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Trade Agreement between India and South Korea

India and South Korea have recently signed a comprehensive trade agreement that promises to boost their economies. The agreement, known as the India-Korea Comprehensive Economic Partnership Agreement (CEPA), was signed in 2009 and provides a framework for closer economic ties between the two countries.

The agreement aims to increase trade by reducing tariffs on a wide range of products and services. This includes the elimination of tariffs on 92% of goods traded between the two countries within a decade of the agreement coming into force. This is expected to lead to an increase in trade between the two countries of around $20 billion over the next decade.

One of the key areas of focus in the trade agreement is the automotive sector. South Korea is one of the world`s leading automotive manufacturers, and the agreement will provide significant benefits for Indian carmakers. The agreement will allow Indian car manufacturers to import Korean-made automotive parts at a reduced tariff rate, making it cheaper for them to produce vehicles in India. This is expected to lead to an increase in the number of Korean car parts being imported into India, as well as an increase in the number of cars being produced in India.

In addition to the automotive sector, the trade agreement also covers a number of other areas, including textiles, chemicals, pharma, and agriculture. The agreement will provide Indian companies with greater access to the Korean market, enabling them to export more products to Korea.

The agreement is also expected to lead to increased investment between the two countries. South Korean companies are already some of the largest investors in India, with companies like Samsung, LG, and Hyundai all investing heavily in India. The trade agreement is expected to encourage even greater investment from South Korean companies, as they seek to take advantage of the improved trading conditions.

The signing of the India-Korea Comprehensive Economic Partnership Agreement marks a significant milestone in the economic relationship between the two countries. By reducing barriers to trade and investment, the agreement will provide a significant boost to the economies of both India and South Korea. It is expected to lead to increased trade, investment, and job creation, and will help to strengthen the already strong ties between the two countries.

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