India-Japan Trade Deal Overhaul: Goyal Hints at CEPA Review
By Business Desk
Union Minister Piyush Goyal suggests a significant overhaul of the 15-year-old India-Japan CEPA to boost economic ties and address trade imbalances.
Union Commerce and Industry Minister Piyush Goyal has indicated a potential overhaul of the India-Japan Comprehensive Economic Partnership Agreement (CEPA). This move aims to modernize the 15-year-old pact and enhance economic engagement between the two nations.
Discussions Underway
Goyal confirmed that discussions regarding the CEPA review took place last month during his visit to Nagoya, Japan. Both India and Japan have expressed openness to expanding the agreement’s scope and scale.
Bolstering Japanese Investment in India
Many leading Japanese companies have expressed significant interest in expanding their operations within India. This increased enthusiasm is attributed to various reforms implemented by the Indian government over the past decade.
These government reforms have specifically addressed and largely removed previous obstacles for foreign investment. Such impediments included foreign direct investment restrictions, complex procedural requirements, and various legal barriers.
India is committed to supporting Japan’s ambition to double the number of Japanese companies currently operating in the country. The present count stands at **1,580** firms.
Addressing Trade Imbalance and Market Access
The existing trade deficit between India and Japan was a key topic of discussion during Goyal’s statements. He emphasized the necessity of analyzing the specific types of goods being traded to accurately understand this imbalance.
A comprehensive review of CEPA presents a critical opportunity for India to address its market access concerns. This process is also expected to foster increased two-way trade and investment between the two economies.
Empowering Indian Exporters
Indian businesses face specific challenges when establishing and expanding exports in Japan, including language barriers and differing procedural requirements. Goyal urged Indian industry to provide detailed accounts of these issues to the government.
He also instructed business councils to ensure that exporters are properly registered for systematic support. The government’s Export Promotion Mission will provide assistance for registration fees and the overall registration processes.
Furthermore, Goyal encouraged the pharmaceutical sector to broaden its global presence. This strategic push aims to enhance India’s footprint in international markets.