India, Japan sign pact for trade

The Dollar Business Bureau In an attempt to foster Prime Minister (PM), Narendra Modi’s ‘Make In India’ policy, India and Japan on Thursday signed an action agenda for investment and trade promotion in New Delhi. The action agenda was signed by the Commerce Minister Nirmala Sitharaman and Japanese Minister of Economy, Trade and Industry, Yoichi Miyazawa for India-Japan investment and trade promotion and Asia-Pacific economic integration. Sitharaman said that signing of action agenda was in line with Prime Minister Modi’s vision of ‘Make in India’. She expressed satisfaction on the progress of trade relationships between India and Japan and said that, “excellent relations were building up between the two countries which would provide opportunity and potential for people in both the countries as a win-win situation.” While the Japanese Minister informed that the action agenda contains five items i.e. development of selected townships in India as Japanese industrial townships, promotion of investment and infrastructure development, further development and cooperation in information technology, cooperation in strategic sectors and Asia -Pacific economic integration. Miyazawa said that the investments by Japan in Indian companies will double in the next 5 years. “The signing of this action agenda is a step further in improving the trade relationship between India and Japan as a follow-up of Modi’s visit to Japan last year,” he added. As per media reports, PM Modi and Japanese Prime Minister Shinzō Abe had not just decided to set a target of doubling Japan's FDI, but also the number of Japanese companies in India within five years. Traditionally, Japanese FDI in India has mainly been in automobile, electrical equipment, telecommunications, chemical and pharmaceutical sectors and Japanese companies have invested US$ 15.359 billion in India between April 2000 and December 2013. Meanwhile, in terms of merchandise trade, India-Japan total trade in FY2013-14 stood at US$ 16,294.82 million.    

Foreign Trade | April 30, 2015 | 4:21 pm IST.