India Intelligence Report
 

   Indo-Japan Plan CECA by year-end

 

 

  • India, Japan to get CECA in place by end of the year

  • Objective is to double trade to USD 10 billion in 3 years

  • India invites Japan to invest in BPO, KPO, EPO

India said that it anticipates a Comprehensive Economic Cooperation Agreement (CECA) to expand trade with Japan and enhance bilateral cooperation in pharmaceutical and manufacturing to ensure doubling bilateral trade to $10 billion in three years.

Commerce and Industry Minister Kamal Nath told an India-Japan Business Summit that he is "very happy to notice the substantial progress made in preparing a roadmap for the CECA as per the recommendations of our joint study group." He thanked Japanese assistance for “developing the rail freight corridor between Mumbai and Delhi and Delhi and Kolkata as also their contribution in building Delhi Metro.” However, he critiqued that "If we look into the statistics of trade and investments between both countries, they do not do justice to the real potential.” He called on the business community to “work towards widening our trade basket" and asked them not to “wait for the finalization of the CECA." Nath specifically invited Japanese small and medium enterprises (SMEs) to tap the business opportunities in India to take advantage of Business Process Outsourcing (BPO), Knowledge Process Outsourcing (KPO), and Employment Process Outsourcing (EPO) operations in India to reduce their cost and enhance their global competitiveness.

India is expected to generate USD 500 billion worth of investment opportunities in the next five
years in major economic sectors and the infrastructure sector alone had the potential to absorb $250
billion.