Analysis of FTA between India and Korea: Challenges and opportunities

Two major economies in Asia, India and South Korea signed the Comprehensive Economic Partnership Agreement (CEPA) on 7^th August 2009. The agreement came into force from 1^st January 2010. The Government of India contends that the CEPA would facilitate trade in services through additional commitments made by both countries to ease the movement of independent professional and contractual service suppliers. The current paper analyses the challenges and the opportunities ahead of India and Korea. The study tries to assess the possible gains for both the partners after reduction in their tariff levels. The study finds that Services markets in India such as telecommunications, banking, medical and advertising will see massive growth in the years to come. At the same time, the CEPA's easing of restrictions on Korean FDI in the fields such as automotive and electronics manufacturing will also help to expand their market base in India.