ABSTRACT
India-Korea trade relations started with a blank slate in the post-independence period without any historical legacy of mutual commercial knowledge or direct contact. After the establishment of consular relations in 1962, tentative steps were taken to explore the potential of bilateral trade between India and Korea. The introduction of major structural reforms in the economic policy in 1991 by Prime Minister P. V. Narasimha Rao had opened up India's market and foreign direct investment was invited in most sectors of the Indian economy. The rapid progress of the Korean economy and the emergence of huge industrial conglomerates had made that medium-sized country a natural source for tapping investments. As the global economy continues to show signs of anaemic growth, the challenge before the entrepreneurs and governments of the two countries would be to sustain the high growth rates of the last 10 years in both trade and investment.
