Free Trade Agreement Japan and India

Free Trade Agreement Between Japan and India: A Win-Win Situation

Japan and India have been close partners for a long time, and their economic ties have also grown stronger over the years. Both the countries have a lot to offer to each other, and the free trade agreement (FTA) between the two nations is a significant step towards enhancing their economic relationship.

The Japan-India Comprehensive Economic Partnership Agreement (CEPA) was signed in 2011 and came into effect in 2013. This agreement aims to reduce tariffs on goods and services traded between the two countries and provide a conducive environment for trade and investment. The CEPA is an ambitious agreement that covers various sectors such as agriculture, trade in goods, services, and intellectual property.

The FTA between Japan and India is a win-win situation for both countries. Japan is an export-oriented economy, and India is a massive market with a growing middle class. The FTA provides an opportunity for Japanese companies to tap into the Indian market and increase their exports to the country. On the other hand, Indian companies can access the Japanese market and benefit from the advanced technology and expertise that Japan has to offer.

One of the significant advantages of the FTA is the reduction in tariffs on goods traded between the two countries. According to the agreement, Japan will eliminate tariffs on 94% of its exports to India, while India will eliminate tariffs on 90% of its exports to Japan. This reduction in tariffs will make Japanese goods more affordable in India, leading to an increase in demand for Japanese products. Similarly, Indian exporters will be able to compete with other countries in the Japanese market as they will have to pay lower tariffs on their goods.

In addition to goods, the FTA also covers several service sectors such as healthcare, education, and IT. With the agreement, Japanese companies can provide services such as IT consulting, software development, and engineering services to Indian clients without any restrictions. Indian companies can also offer their services in Japan, leading to greater employment opportunities and economic growth.

The FTA between Japan and India also benefits the consumers of both countries. With the elimination of tariffs, prices of goods and services will come down, making them more affordable. This will lead to greater consumer satisfaction and increased demand for goods and services.

In conclusion, the FTA between Japan and India is a significant step towards enhancing bilateral trade and investment. The agreement provides an avenue for Japanese companies to tap into the Indian market and increase their exports, while Indian companies can access the Japanese market and benefit from the advanced technology and expertise that Japan has to offer. The reduction in tariffs on goods and services will make them more affordable, leading to greater consumer satisfaction. With the FTA in place, both Japan and India stand to benefit from increased economic growth and prosperity.

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