India and Japan have recently signed a foreign trade agreement that is expected to strengthen their bilateral trade relations and boost their respective economies. The agreement, which was signed in 2020, covers a wide range of trade areas, including goods, services, and investment.
The India-Japan Comprehensive Economic Partnership Agreement (CEPA) is a continuation of the economic cooperation initiatives between the two countries that were started in 2011. Under the agreement, Japan will provide preferential treatment to Indian goods and services, while India will reciprocate by offering similar benefits to Japanese companies.
One of the key highlights of the agreement is the removal of tariffs on a significant number of goods traded between the two countries. This will provide a major boost to Indian exporters of textiles, leather, and marine products, which account for a significant portion of India`s exports to Japan. In return, Japan will benefit from easier access to Indian markets for its automobiles, pharmaceuticals, and machinery.
The agreement is also expected to pave the way for increased investment flows between the two countries. It will provide a stable and predictable investment environment for Japanese businesses in India and vice versa. This is particularly important for Japan, which has been making significant investments in India`s infrastructure and manufacturing sectors in recent years.
The CEPA will also promote the exchange of skilled professionals between the two countries. This will allow Indian IT professionals to work in Japan and Japanese experts to work in India, thereby boosting the development of both countries` digital economies.
Overall, the India-Japan CEPA is a significant development for the two countries` bilateral trade relations and is expected to provide a major boost to their respective economies. As the world faces the economic challenges of the COVID-19 pandemic, this agreement is a bright spot that offers hope for increased economic cooperation and growth in the Asia-Pacific region.