Economic Partnership Agreement between India and Japan
Economic Partnership Agreement Between India and Japan: A Boost for Bilateral Trade
India and Japan share a long-standing relationship marked by centuries-old cultural and religious ties. The two countries have been involved in mutual cooperation and trade for decades. Recently, the two Asian giants signed an Economic Partnership Agreement (EPA) that is expected to boost bilateral trade and investment.
The EPA was signed on 16th October 2020, during the virtual summit between the Prime Ministers of India and Japan. The agreement aims to enhance mutual trade and investment by opening up markets and creating more opportunities for the two countries` businesses.
The agreement covers several areas such as trade in goods, services, and investments. It aims to eliminate or reduce tariffs, non-tariff barriers and promote the liberalization of services trade, including professionals` movement, and facilitate investment flows. The EPA also includes several provisions to protect intellectual property rights, promote e-commerce, and enhance regulatory cooperation.
The EPA is significant for the Indian economy, not only in terms of trade and investment but also in terms of strategic importance. Japan is one of India`s top economic partners, and the EPA is expected to further strengthen the economic ties between the two countries.
The agreement is aimed at promoting a robust bilateral economic relationship, which will help create jobs, increase investment flow, and enhance technology transfer. It is also expected to boost India`s manufacturing and export sectors, given Japan`s expertise in advanced technologies and high-quality manufacturing.
The focus sectors for the EPA are expected to be textiles, chemicals, automobiles, and electronics. The agreement also includes provisions for cooperation in areas such as agriculture, healthcare, and energy.
The EPA is expected to provide a conducive environment for Japanese companies to invest in India. India`s attractive demographics, skilled workforce, and strategic location make it an ideal investment destination for Japanese companies looking to expand their footprints in Asia.
The EPA is also expected to help India reduce its trade deficit with Japan. Currently, India`s trade deficit with Japan stands at around $7 billion, and the EPA is expected to create a level playing field for Indian companies to compete with Japanese companies in the Japanese market.
In conclusion, the EPA between India and Japan is a significant development that will help boost bilateral trade and investment. It is expected to provide a conducive environment for businesses and create more opportunities for Indian and Japanese companies to enhance their economic relationship. The EPA is a clear indication of the growing cooperation between India and Japan and their commitment to strengthening their ties further.