India and South Korea are advancing negotiations to upgrade their existing free trade agreement (FTA), known as the Comprehensive Economic Partnership Agreement (CEPA), which has been in effect since January 2010. The Indian Department of Commerce is actively engaging with various ministries, including heavy industries, steel, and chemicals, to prepare an offer list as part of the ongoing negotiations.

So far, ten rounds of talks have been completed. According to an official, both nations have exchanged request lists and are now focusing on their offer lists. The commerce ministry is collaborating with sectors like textiles, chemicals, and petrochemicals to finalize the details. India is seeking greater market access for products such as steel, rice, and shrimp to boost exports. Additionally, concerns have been raised about Korean firms not purchasing Indian steel.

The upgrade negotiations are crucial as both countries aim to strengthen and deepen economic cooperation. Typically, such agreements involve reducing or eliminating customs duties on a wide range of goods, easing trade norms, and boosting investments. The agreement undergoes periodic reviews to address implementation issues, rules of origin, customs procedures, and further liberalization of trade in goods and services.