India clinches FTA deal with South Korea; pact likely in Dec

India is closer to signing a free trade agreement with South Korea, giving the country an opportunity to aggressively engage within Asia when the US and European economies are in turmoil.

"The deal is done and the agreement will be signed by December," a senior Commerce Ministry official told reporters here on the sidelines of a FICCI function today.

While India does not need a Parliamentary approval for a trade pact, South Korea would need a green signal from its National Assembly.

"It will go to our Cabinet while the Koreans would need a nod from their National Assembly," the official said, adding that the process of verification of the documents would be completed by November 18.

 

The India-South Korea FTA would break duty barriers for over $11.2 billion bilateral trade. Over 90 per cent of the items under trade would be covered in the agreement, which is likely to come into effect in 2009.

India's engagement within Asia is set to grow with the help of the trade-opening agreements reaching final stages with ASEAN. Besides an umbrella pact with the 10-nation bloc, there would be individual deals with several member countries like Indonesia and Malaysia.