The agreement for South Korea added to a large list of bilateral and multilateral free trade agreements established under Korean President Roh Moo-hyun.  With regard to India, the negotiations coincided with the Look East initiative of then-Indian Prime Minister Manmohan Singh, which promised greater regional integration between India and East Asian markets. South Korea`s technological progress and production capabilities can contribute to India`s economic growth and human resource development. Seoul`s successful development history in recent decades can complement Modi`s vision of making a « New India » by 2022. The agreement will ease restrictions on foreign direct investment. Companies can own up to 65% of a business in another country.  Both countries have avoided problems in agriculture, fisheries and mining and are deciding not to reduce tariffs in these areas. This is due to the high sensitivity of these sectors in the countries concerned.  In 2008, trade between India and South Korea amounted to $15.6 billion. This is a significant increase from 2002, when total trade was $2.6 billion.  The Korea Institute for International Economic Policy estimates that the agreement will increase trade between the two countries by $3.3 billion.  In January 2005, the two sides formed a joint task force to assess the viability of a free trade agreement between the two countries.
Over the next four years, the Joint Study Group reviewed existing trade between the two countries worth $7.1 billion and negotiated an agreement that respected the weaknesses and economic strengths of the two countries` markets. Rahul Khullar, India`s trade minister and member of the Joint Study Group, says such cooperation took place during discussions on the agricultural sector, which is particularly weak in South Korea but thrives in India.  The Comprehensive Economic Partnership Agreement (CEPA) is a free trade agreement between India and South Korea.  The agreement was signed on August 7, 2009.  The signing ceremony took place in Seoul and the agreement was signed by Indian Trade Minister Anand Sharma and South Korean Trade Minister Kim Jong Hoon.  The negotiations lasted three and a half years and the first meeting took place in February 2006. The agreement was adopted by the South Korean Parliament on 6 November 2009.  It was passed next week by the Indian Parliament.  After its adoption, the agreement came into force sixty days later, on 1 January 2010.  This is a free trade agreement.
 The agreement will allow the Indian service industry in South Korea to have better access. Services include information technology, engineering, finance and the legal sector.  In South Korea, tariffs are reduced to less than 1%.  All this time, Korean companies have flooded India with cheaper imports of raw metals, steel and finished products. The most important « technical » difference between an ECSC and the EPA is that the ECSC only includes « the reduction/phasing out of rates on listed/all items, with the exception of the negative list and the tariff quota (TRQ).