Study Material | Test Series
Drishti IAS
call1800-121-6260 / 011-47532596
Drishti The Vision Foundation
(A unit of VDK Eduventures Pvt. Ltd.)
prelims Test Series 2019
बेसिक इंग्लिश का दूसरा सत्र (कक्षा प्रारंभ : 22 अक्तूबर, शाम 3:30 से 5:30)
3rd India-Japan CEPA Joint Committee Meeting
Aug 09, 2016

The 3rd meeting of the Joint Committee at the Secretary Level under the India-Japan CEPA (Comprehensive Economic Partnership Agreement) was held recently in New Delhi.

  • The two sides had extensive discussions on bilateral trade related issues and economic relations.
  • The Indian side highlights the various issues which need to be addressed by the Japanese side for providing greater market access to Indian Products in Japan, especially items with a high potential, like sesame seeds, marine products and pharmaceuticals.
  • The Indian side also sought recognition of the Indian Organic Standards by Japan.
  • Though there has been an increase in the number of work visas issued by Japan, after the cooperation agreement come into force, the market share of Indian IT Companies in the Japanese IT market is yet considered below potential and ways to improve this were discussed.
  • The decision of Japan to reduce its increasing health care costs on account of its aging population and its decision to switch over to a higher share of generic medicines was seen as a potential opportunity for the Indian Pharma Industry, which is strong in generics.
  • The Japanese side raised several issues relating to taxation and investment concerns by the Japanese companies who are investing in India.
  • Both sides agreed for the need for higher cooperation in providing market access to Indian products in Japan and facilitating Japanese investments in India.

CEPA’s Benefits for India

The CEPA was signed in February 2011 to boost trade between the two countries. While the Indian automobile and automobile parts industry have been largely shielded from tariff cuts by their inclusion in the negative list of items, India has agreed to reduce tariffs on auto parts made of steel, which is a major gain for the Japanese industry.

  • Indian professionals and producers of textiles, pharmaceuticals and a number of other goods make strong gains as India and Japan implement a Comprehensive Economic Partnership Agreement (CEPA). The pact seeks to abolish import duties on most products, increase access for Indian professionals and contractual service suppliers to the Japanese market and liberalise investment rules.
  • Now, Japan is in position to export consumer durables, such as electronics cheaper, to India, but tariff reduction by India will happen in phases over 10 years. The Indian textile industry is a major gainer as Japan has tariffs as high as 15% on the item compared to its average import tariff of below 5%.
  • The CEPA brings immediate gains to exporters of textiles, seafood and spices to Japan as duties on these products would be eliminated from the first day. It would ultimately result in removal of duties on almost 90% of products traded between the two countries.
  • Other sectors that would gain from the CEPA through lower duties include agricultural products such as mangoes, citrus fruit, spices, instant tea, most spirits, petrochemical & chemical products, cement and jewellery.
  • The pharmaceutical industry, too, is expected to make tangible gains as Japan has agreed to extend it national treatment which would result in a major drop in the time required for registration.
  • Benefits would, however, be much bigger for the services sector with Japan agreeing to liberalise temporary movement of yoga instructors, classical music and dance exponents, English language teachers and Indian cuisine masters.

Helpline Number : 87501 87501
To Subscribe Newsletter and Get Updates.