India, Korea JSG to zero in on trade barriers

India and Korea have started work on improving bilateral economic ties and examining the feasibility of a comprehensive economic co-operatio...

India and Korea have started work on improving bilateral economic ties and examining the feasibility of a comprehensive economic co-operation agreement.

A joint study group (JSG) comprising officials, experts and industry representatives from both sides had its first meeting in New Delhi recently, where the strategy for future work was discussed. JSG would submit its report by the end of the calendar year.

The Indian side includes officials from the finance, commerce and external affairs ministries, experts from the research and information system for developing and other non-alligned countries (RIS) and Icrier, and representatives from the Ficci and CII.

RIS director general Nagesh Kumar said JSG has decided to first identify existing barriers to trade in services, goods and investment in both countries and give suggestions on removing them.

While Korea is already the fifth largest source of foreign investment for the country Kumar said there was scope for multiple growth.

‘‘Korean steel company Posco is planning to invest $10 bn in an integrated steel plant in Orissa. If the investment environment in the country improves, Korean investment can grow manifold. This is exactly what JSG seeks to do,’’ he said.

On the goods side, too, there exists a lot of opportunities for India to increase exports, especially in the area of textiles and leather, Kumar said.