India wants to review, expand 15-year-old trade pact with Japan
India has been seeking a review of the agreement for several years but the Japanese side was holding out. A breakthrough of sorts was achieved last month when Prime Ministers of both countries said the two sides should discuss the pact and make it more contemporary. Bilateral trade between the two countries was pegged at $27.5 billion, with India’s exports estimated at $6 billion.
India seeks to review and potentially expand its 15-year-old trade partnership with Japan, addressing concerns over the agreement's failure to deliver benefits to Indian exporters. The Comprehensive Economic Partnership Agreement has reportedly been unable to generate positive outcomes for Indian goods and services exporters. India's Trade and Industry Minister, Piyush Goyal, expressed his intention to work towards expanding the scope and opportunities for the partnership during a recent meeting with his Japanese counterpart.
Goyal noted that a breakthrough in discussions was achieved last month when both Prime Ministers agreed on the necessity to discuss and modernize the pact.
Goyal emphasized that negotiations would require give and take, as Japan is not ready to relinquish existing concessions. The bilateral trade between the two nations is valued at $27.5 billion, with India's exports accounting for $6 billion, leading to a trade deficit of $15.5 billion. Recent Foreign Direct Investment (FDI) of $67 billion has seen $10 billion flowing in during the past 10 months, with financial services leading the surge.
However, Indian industries have complained about bureaucratic hurdles, such as cumbersome certification and registration requirements, hindering their ability to capitalize on the trade agreement.
To tackle these challenges, Goyal assured that the commerce department is supporting industries and exporters in meeting regulatory requirements through product registrations. Furthermore, he requested industries to submit challenges they face while exporting goods to Japan, aiming to address issues related to process, language, and time. Goyal highlighted Japan's significance as a key strategic partner and their shared desire to strengthen the partnership, emphasizing the importance of a balanced trade relationship.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
