India-Japan CECA to be ready this year: Nath
India on Wednesday said the Comprehensive Economic Cooperation Agreement with Japan that envisages doubling bilateral trade to $10 billion in three years by expanding the trade basket would be ready by this year.
By PTI |
TOKYO: India on Wednesday said the Comprehensive Economic Cooperation Agreement with Japan that envisages doubling bilateral trade to $10 billion in three years by expanding the trade basket would be ready by this year.
"I am very happy to notice the substantial progress made in preparing a roadmap for the Comprehensive Economic Cooperation Agreement as per the recommendations of our joint study group," Commerce and Industry Minister Kamal Nath said speaking at the concluding function of the India-Japan Business Summit here.
He said the agreement would be ready by this year end and focus areas for enhanced bilateral cooperation would be pharmaceuticals and manufacturing.
The minister also invited Japanese SMEs to tap business opportunities in India.
"We appreciate the Japanese assistance for developing the rail freight corridor between Mumbai and Delhi and Delhi and Kolkata as also their contribution in building the metro in Delhi. This is in keeping with the trend of Japanese investments catalysing transformation of Indian industrial sectors," Nath said.
"In India, Japan is synonymous with quality and dedication to work. I want the Japanese SMEs to note the conducive climate created in India for them by their predecessors," Nath said.
"If we look into the statistics of trade and investments between both the countries, they do not do justice to the real potential. We need to work towards widening our trade basket," he said, adding "we should not wait for finalisation of CECA."
There are enough windows available, the Japanese corporate should look towards BPO, KPO and EPO operations in India to reduce their cost and enhance their global competitiveness, he said.
Mentioning the demographic advantage of India with a young, energetic and skilled population as compared to Japan, Nath said it would be a "win-win situation for both countries to merge the synergies of Japan's technology and innovation with India's young and skilled workforce".
"Japan is undoubtedly at the cutting edge of information and communication technology. India is also experiencing a boom in telephony. Almost, five million new consumers are added every month in India.
"Additionally, major national programmes for e-governance and rural telephony have created unprecedented business potential for manufacturing as well as related services," he said, urging Japanese corporates to work with their Indian counterparts to quickly capture these opportunities.
Nath said the Investment Commission had estimated an investment opportunities worth $500 billion in the next five years in major economic spheres. Of this, $250 billion investment opportunities exist in infrastructure sectors alone.
To look beyond five years, the power sector provides investment opportunities of $ 200 billion by 2012 through planned addition of about 100,000 MW capacities.
"Japan needs to take a relook at their investment strategy in India", he said.
On SEZs, the minister said there are only 15 SEZs functioning now and "we expect the number to increase to 150 in the next 1-2 years in view of the unprecedented policy incentives provided in the scheme... I see SEZs as the future centres of economic growth in India".
Japanese Minister for Economy Toshihiro Nikai said that the increasing purchasing power of the growing middle class in India offered enough business opportunity for Japanese businesses.
"I am very happy to notice the substantial progress made in preparing a roadmap for the Comprehensive Economic Cooperation Agreement as per the recommendations of our joint study group," Commerce and Industry Minister Kamal Nath said speaking at the concluding function of the India-Japan Business Summit here.
He said the agreement would be ready by this year end and focus areas for enhanced bilateral cooperation would be pharmaceuticals and manufacturing.
The minister also invited Japanese SMEs to tap business opportunities in India.
"We appreciate the Japanese assistance for developing the rail freight corridor between Mumbai and Delhi and Delhi and Kolkata as also their contribution in building the metro in Delhi. This is in keeping with the trend of Japanese investments catalysing transformation of Indian industrial sectors," Nath said.
"In India, Japan is synonymous with quality and dedication to work. I want the Japanese SMEs to note the conducive climate created in India for them by their predecessors," Nath said.
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"If we look into the statistics of trade and investments between both the countries, they do not do justice to the real potential. We need to work towards widening our trade basket," he said, adding "we should not wait for finalisation of CECA."
There are enough windows available, the Japanese corporate should look towards BPO, KPO and EPO operations in India to reduce their cost and enhance their global competitiveness, he said.
Mentioning the demographic advantage of India with a young, energetic and skilled population as compared to Japan, Nath said it would be a "win-win situation for both countries to merge the synergies of Japan's technology and innovation with India's young and skilled workforce".
"Japan is undoubtedly at the cutting edge of information and communication technology. India is also experiencing a boom in telephony. Almost, five million new consumers are added every month in India.
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"Additionally, major national programmes for e-governance and rural telephony have created unprecedented business potential for manufacturing as well as related services," he said, urging Japanese corporates to work with their Indian counterparts to quickly capture these opportunities.
Nath said the Investment Commission had estimated an investment opportunities worth $500 billion in the next five years in major economic spheres. Of this, $250 billion investment opportunities exist in infrastructure sectors alone.
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To look beyond five years, the power sector provides investment opportunities of $ 200 billion by 2012 through planned addition of about 100,000 MW capacities.
"Japan needs to take a relook at their investment strategy in India", he said.
On SEZs, the minister said there are only 15 SEZs functioning now and "we expect the number to increase to 150 in the next 1-2 years in view of the unprecedented policy incentives provided in the scheme... I see SEZs as the future centres of economic growth in India".
Japanese Minister for Economy Toshihiro Nikai said that the increasing purchasing power of the growing middle class in India offered enough business opportunity for Japanese businesses.
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