‘Young lust’ draws ageing Japan to India
Skilled professionals from India may soon find a big opening in the East, especially Japan.
By MK Venu & G Ganapathy Subramaniam, TNN |
NEW DELHI: Skilled professionals from India may soon find a big opening in the East. Japan, with its greying population, is looking at a comprehensive economic partnership agreement (CEPA) with India, similar to the pact inked with Singapore last year. The move may provide a stable regime for Indian professionals with Yen dreams since Japan is the world’s second largest economy and the opportunities available are plenty.
The proposed CEPA will be discussed during PM Manmohan Singh’s visit to Tokyo next month. The ground work is already on to speed up the pact, which will also be a shot in the arm for foreign direct investment (FDI) from Japan.
Yasukuni Enoki, the Japanese ambassador to India, confirmed that the two sides are looking at a pact that includes market access in services. “Yes, we are looking at a Singapore-type economic co-operation agreement,” he said. The CECA with Singapore has paved the way for Indian professionals to tap the Singapore market through mutual recognition of educational qualifications. Skilled professionals like doctors and accountants will be the major beneficiaries of such agreements, said senior government officials.
For Japan, the pact fits perfectly since India’s educational institutions churn out lakhs of qualified professionals every year, and this supply could help allay some concerns related to its low-birth rate and ageing population. Capital is scarce in India, but abundant in Japan, which also leads in terms of technology. Japan has invested in various countries in Asia, including Thailand, China and Malaysia.
Initially, India and Japan were looking at a free trade agreement (FTA) to double bilateral trade from $9 billion. Since the FTA involved goods trade, it faced resistance from farmers and the domestic industry. Commerce & industry minister Kamal Nath proposed that the pact include investment and services too. To make the pact more attractive, he has also pitched for a focus on export of agri-products to Japan.
The breakthrough came in recently with Japan expressing interest in a Singapore-type CECA, the sources said. This follows India’s recent move to ink a similar pact with the European Union. With the government pushing for CECA with Asean and several other players like the Gulf Co-operation Council, India’s trade partners feel that the country is open to forging economic pacts.
The proposed CEPA will be discussed during PM Manmohan Singh’s visit to Tokyo next month. The ground work is already on to speed up the pact, which will also be a shot in the arm for foreign direct investment (FDI) from Japan.
Yasukuni Enoki, the Japanese ambassador to India, confirmed that the two sides are looking at a pact that includes market access in services. “Yes, we are looking at a Singapore-type economic co-operation agreement,” he said. The CECA with Singapore has paved the way for Indian professionals to tap the Singapore market through mutual recognition of educational qualifications. Skilled professionals like doctors and accountants will be the major beneficiaries of such agreements, said senior government officials.
For Japan, the pact fits perfectly since India’s educational institutions churn out lakhs of qualified professionals every year, and this supply could help allay some concerns related to its low-birth rate and ageing population. Capital is scarce in India, but abundant in Japan, which also leads in terms of technology. Japan has invested in various countries in Asia, including Thailand, China and Malaysia.
Initially, India and Japan were looking at a free trade agreement (FTA) to double bilateral trade from $9 billion. Since the FTA involved goods trade, it faced resistance from farmers and the domestic industry. Commerce & industry minister Kamal Nath proposed that the pact include investment and services too. To make the pact more attractive, he has also pitched for a focus on export of agri-products to Japan.
The breakthrough came in recently with Japan expressing interest in a Singapore-type CECA, the sources said. This follows India’s recent move to ink a similar pact with the European Union. With the government pushing for CECA with Asean and several other players like the Gulf Co-operation Council, India’s trade partners feel that the country is open to forging economic pacts.
ADVERTISEMENT
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
