India is going to review and expand its 15-year-old trade agreement with Japan as both countries seek to strengthen economic ties and address the challenges being faced by Indian businesses.
Commerce and Industry Minister, Piyush Goyal, stated how India is going to be open to expanding the reach of the Comprehensive Economic Partnership Agreement (CEPA), which was signed between India and Japan in 2011. The government believes the agreement needs to be updated to reflect the current patterns of the market.
One major reason behind this view is India's trade gap with Japan. Exporters have faced difficulties entering the Japanese market in the past, like including strict quality and certification requirements.
While India is also looking to attract greater Japanese investment, officials have also linked the review of the trade pact with efforts to facilitate significant Japanese investment commitments over the coming decade.
Goyal has stated that India wants CEPA to become “contemporary”, which will be better suited to the current economic relationship between the two countries. Discussions may focus on expanding trade opportunities, strengthening supply chains and encouraging more Japanese companies to invest and manufacture within India.
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