1 week ago
India, Japan Set to Review Trade Pact, Investment Plans
India and Japan have a trade agreement that was signed in 2011.
India wants to check the agreement again because it buys more from Japan than it sells there.
The two countries also want to make it easier for Japanese companies to invest in India.
The planned investment is worth 10 trillion yen over the next 10 years.
Indian minister Piyush Goyal visited Japan with more than 220 business representatives.
He asked Japanese companies to make more products and parts in India.
Some Japanese businesses were worried about India using safeguards on certain imports.
Goyal said the Indian government listens to businesses and uses these measures only in limited parts of the market.
India plans to review its 2011 trade agreement with Japan to address the widening trade gap.
The review will also seek to streamline committed Japanese investment worth 10 trillion yen, or more than $62 billion, over the next decade.
Commerce and Industry Minister Piyush Goyal led a delegation of more than 220 Indian industry stakeholders on a four-day Japan visit from August 24 to 27.
Goyal urged Japanese companies to deepen production in India, use Indian suppliers, and expand their operations there.
Japanese companies raised concerns about India’s use of safeguard measures, while Goyal said such measures apply only to lower-end market segments.
- Who
- India, Japan, Indian Commerce and Industry Minister Piyush Goyal, and Japanese and Indian businesses.
- What
- India and Japan plan to review their 2011 trade pact, address the trade gap, and streamline Japanese investment in India.
- Where
- The delegation’s meetings are taking place in Japan, including Tokyo, Nagoya, and Osaka.
- When
- The Indian delegation’s visit runs from August 24 to 27; the articles do not specify the year.
- Why
- The review is intended to address India’s widening trade gap with Japan and improve investment and trade cooperation.
Japanese Business Concerns
Indian Government Response
Use of safeguard measures
Japanese Business Concerns
Japanese companies raised concerns during a roundtable about India’s use of safeguard measures.
Indian Government Response
Piyush Goyal said safeguards are used for the low end of the market and said the government works with investors to address business concerns.
Sourcing and competitiveness
Japanese Business Concerns
Japanese companies expressed concerns related to trade conditions affecting their operations and imports.
Indian Government Response
Goyal urged Japanese companies to source steel and other components from India, deepen localization, and use India’s cost competitiveness and engineering talent.
Key facts
- Trade agreement
- India and Japan signed the agreement in 2011.
- Planned investment
- The countries aim to streamline committed investment worth 10 trillion yen, or over $62 billion, over the next 10 years.
- Delegation
- More than 220 Indian industry stakeholders are traveling with Piyush Goyal.
- Visit dates
- The delegation’s four-day visit runs from August 24 to 27.
- Cities visited
- Tokyo, Nagoya, and Osaka.
- Indian companies in Japan
- Goyal said India has free trade agreements or preferential market access covering markets worth $17 trillion.
- Japanese companies in India
- Goyal referred to 1,580 Japanese companies operating in India and called for that number to double.
Quotes
Piyush Goyal
India’s Commerce and Industry Minister
“We would like to see 1,580 Suzukis being created out of India and the doubling of the number of the companies operating out of India.”
indianexpress.com
“Today we have free trade agreements (FTAs) or preferential market access in markets worth $17 trillion.”
indianexpress.com
Sources
Related news
Goyal Urges Japan to Build 1,580 Suzukis in India
Goyal Pitches Japanese Expansion and $30 Trillion India Vision
Piyush Goyal Leads Japan Delegation Seeking ₹60,000 Crore Investment
Goyal Seeks Faster Japanese Investment and Deeper Economic Partnership
Goyal Leads Largest-Ever India-Japan Delegation for Trade Push
Goyal’s Japan Visit Spurs Robotics Investment, Trade Ambitions
Japan Cricket Boss Defends Asian Games Facilities Against Concerns
Mitsubishi Revives Pajero With 201PS Fifth-Generation SUV
Europe's Bond Selloff Deepens as Middle East Tensions Lift Oil
Uday Kotak Warns Global Bond Markets Face Roller-Coaster Volatility
Global Bond Sell-Off Pushes Japan Yields To 30-Year High
