FICCI Warns of Widening India-Japan Trade Deficit
By ThePip Desk
FICCI President Anant Goenka highlights India’s growing trade deficit with Japan, citing market access barriers and regulatory hurdles for Indian exporters.
The Federation of Indian Chambers of Commerce and Industry (FICCI) President, Anant Goenka, has expressed significant concern over India’s widening trade deficit with Japan. This growing imbalance poses considerable difficulties for Indian exporters attempting to access the Japanese market.
Market Access Barriers for Indian Exports
Goenka specifically identified stringent certification and regulatory requirements as major obstacles. These hurdles particularly affect pharmaceutical companies aiming to sell their products in Japan.
Key concerns include stringent certification and regulatory requirements.
Another factor is the bias towards buying products from Japanese companies within Japan.
To alleviate these issues, FICCI’s President has urged Tokyo to grant greater recognition to Indian certifications. This step is crucial for improving market access for Indian goods.
India-Japan Trade Figures
The concern over the trade deficit is underscored by recent bilateral commerce data. Two-way trade between India and Japan saw a 9.18% increase in fiscal year 2025-2026.
Total two-way commerce (FY25-26) reached $27.47 billion.
Indian exports stood at $6.03 billion for FY25-26.
Indian imports were significantly higher at $21.43 billion.
This represents an increase from the previous year’s commerce of $25.16 billion in 2024-25.
The trade deficit itself has expanded significantly over recent fiscal years. It reached $15.4 billion in the last fiscal year, marking a notable increase.
The trade deficit for FY25-26 was $15.4 billion.
It was $12.66 billion in 2024-25.
The deficit stood at $12.53 billion in 2023-24.
Earlier, it was $11 billion in 2022-23.
Opportunities for Collaboration in Africa
Beyond trade imbalances, Goenka also highlighted substantial potential for India and Japan to collaborate in Africa. This partnership could span several high-tech and strategic sectors.
Potential collaboration areas include high-tech manufacturing and artificial intelligence.
Further sectors are data centres, shipbuilding, and critical minerals.
Collaboration also extends to steel and semiconductors.
Both nations can collectively enhance investments within Africa and boost their sales to the continent. Critical minerals represent a particularly vital area for joint efforts in the region.
The call for greater recognition of Indian certifications and addressing trade barriers aims to foster a more balanced economic relationship. This could unlock further growth opportunities for Indian exporters in a key global market.