Press Information Bureau

Government of India

Ministry of Commerce & Industry

28-December-2011 17:24 IST

India Japan on Course to Trade Target of US $ 25 Billion by 2014

Invites Japanese Companies to Partner in Infrastructure, Pharma, Energy & Agro Processing Sector

Shri Anand Sharma the union Minister for Commerce, Industry & Textiles in his address to business delegation led by Mr. Yoshihiko Noda the Prime Minister of Japan, said that, “The year 2011 is a watershed year in our relations as we signed the Comprehensive Economic Partnership Agreement (CEPA) during my visit to Japan in February. The signing of CEPA has begun a whole new chapter in our economic partnership, unlocking the true potential of trade between our two countries. I am hopeful that CEPA will further deepen economic engagement in terms of Trade in Goods, Services, and Investment; contributing immensely to mutual prosperity”. Japan is an invaluable & strategic partner in the process of India’s development. India-Japan has to play major role in the globally changing economic landscape, he added.

Shri Sharma stated that, as a result of coming in to force of CEPA, the bilateral trade is likely to increase substantially and expressed hope that the target of US $ 25 billion by 2014 will be achieved during the specified period. The bilateral trade between India and Japan during the year 2009-10 was of the volume of US $ 10.36 billion. The bilateral trade during the year 2010-11 reached to US $ 13.823

Informing about the Delhi-Mumbai Industrial Corridor the Commerce Minister said, “The Delhi-Mumbai Industrial Corridor envisages investment of US $ 100 billion and we have now decisively moved from the stage of planning and design to the stage of implementation.” On 24th October 2011, the National Manufacturing Policy was unveiled and seven industrial townships have been identified as the first National Investment and Manufacturing Zones based on models of sustainable development and smart communities, which has been perfected in Japan. The Japanese Government is committing US $ 4.5 billion for implementation of this project.

Asking for Japanese Government to invest in infrastructure sector, Shri Sharma expressed that, “Over the next couple of decades, we will see massive expansion in Indian infrastructure. In the coming 5 years itself, we have targeted to invest over a trillion dollars in creating capacities of infrastructure which will further catalyze India’s economic growth. India has a structured energy dialogue with Japan which seeks to promote a structured cooperation in this sector. India has made rapid strides in the renewable energy sector.

In the field of agro-processing, we aim to double our food processing capabilities in the next 5 years and the establishment of 64 fully equipped Agro Processing Zones and Food Parks provides an area of immense opportunities. This is a segment where Japan can be an able partner to develop cross sectoral linkages in the entire value addition chain from agriculture to retail, packaging and logistics, the Minister said.

The Minister observed that, India’s pharmaceutical sector is acquiring a global leadership position and Indian generics today constitute nearly a fifth of global supplies. Our pharmaceutical companies can be of immense value in providing affordable healthcare which is much needed in a country of Japan’s demographic profile. India also has a huge pool of trained pharmaceutical scientists, doctors and researchers, which opens up avenues for joint collaborative research for new drug discoveries along with joint IPRs.

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Comprehensive Economic Partnership boosts India Japan trade prospects, inviting Japanese investment in infrastructure, manufacturing and pharma collaboration. The Comprehensive Economic Partnership Agreement is identified as the principal mechanism to deepen India Japan trade, services and investment, expected to catalyse substantial bilateral growth. The release invites Japanese investment in priority platforms-notably the Delhi Mumbai Industrial Corridor and National Investment and Manufacturing Zones-alongside structured energy cooperation, expansion of agro processing through designated zones, and pharmaceutical collaboration including joint research and shared IPR arrangements.