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India, South Korea Sign On Economic Development Cooperation Fund Loan Of Rs 1500 Cr

However, the trade deficit between India and South Korea stood at USD 8.1 billion during 2020-21

Photo Credit : PIB

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India and South Korea signed an agreement on Wednesday for an Economic Development Cooperation Fund loan of over Rs 1500 crores for the establishment of an Intelligent Transport System on the Nagpur-Mumbai Super Communication Expressway Project. The project's goal is to improve traffic management efficiency by implementing an Intelligent Traffic Management System.

According to the official statement, the project will improve toll management efficiency by establishing the Toll Collection System.

South Korea was designated as India's Official Development Assistance (ODA) partner for development cooperation in October 2016. This is the first project funded by the South Korean government through an EDCF loan. In 2015, the two countries' bilateral relationship was elevated to a “Special Strategic Partnership.”

However, the trade deficit between India and South Korea stood at USD 8.1 billion during 2020-21. India's exports in 2021-22 were USD 8.08 billion, while imports aggregated at USD 17.5 billion.

Earlier, India expressed “serious concerns” about South Korea's growing trade deficit, and the two partners agreed to address tariff and non-tariff barriers, according to a commerce ministry statement. 

In 2020, India exported USD 4.63B to South Korea. The main products exported from India to South Korea were Raw Aluminium, Refined Petroleum and Ferroalloys. During the last 25 years, the exports of India to South Korea have increased at an annualised rate of 7.16 per cent, from USD 822M in 1995 to USD 4.63B in 2020.

In 2020, South Korea exported USD 12.1B to India. The main products exported from South Korea to India were Integrated Circuits, Motor vehicles, parts and accessories and Refined Petroleum. During the last 25 years, the exports of South Korea to India have increased at an annualised rate of 9.61 per cent, from USD 1.22B in 1995 to USD 12.1B in 2020.


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India-South Korea ties