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Commerce and Industry Minister Piyush Goyal
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In the shadow of US’ reciprocal tariffs, Commerce and Industry Minister, Piyush Goyal is leading a business delegation to Japan later this month to explore greater market opportunities in various sectors and initiate discussions on removing existing non-tariff barriers. The idea is to aim for greater gains from the bilateral comprehensive economic partnership agreement (CEPA) that has so far benefitted Japan more than India, sources said.
“The Commerce Department has invited the industry to participate in the business delegation to Japan from across sectors including chemicals, textiles, engineering goods, pharmaceuticals, heavy industry and plastics. The industry has been asked to identify various non-tariff barriers that can be addressed to increase market access and also explore new opportunities in the country,” a source tracking the development told businessline. The delegation is scheduled to visit Tokyo on May 12-14.
US President, Donald Trump’s decision to impose reciprocal tariffs on countries to bring down US’s trade deficit has hit both India and Japan.
India-Japan talks
“While India and Japan are trying to work out trade deals with the US to avoid the reciprocal tariffs, both feel the need to increase trade with other partners. That is why the delegation visit to Japan, led by the Commerce Minister, is additionally important,” the source said.
India’s overall exports grew at less than 1 per cent in 2024-25 due to continued global slowdown and uncertainty unleashed by Trump but its shipments to Japan posted a growth of 21.12 per cent to 6.24 billion. India’s imports from Japan in FY 25 was much higher at $18.91 billion posting a growth of 6.91 per cent over the previous year.
“Japan is India’s trusted trade partner and there is a lot of scope for growth as the country’s exports to Japan is less than 1.5 per cent of its total exports. The India-Japan CEPA implemented way back in 2011 has benefitted Japan more because of low utilisation in India but there is scope for addressing the problem areas,” the source added.
Japan has so far not been very keen on a CEPA review suggested by India, but New Delhi wants the country to address the various non tariff barriers, such as stringent quality norms and certification requirements, that act as hurdles.
Published on May 2, 2025
This article first appeared on The Hindu Business Line
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