India looks for FTA ray from land of rising sun
TIMES NEWS NETWORK - FRIDAY, APRIL 29, 2005
India looks for FTA ray from land of rising sun
NEW DELHI: Setting the stage for a quantum jump in economic ties, India and Japan have decided to look at the formation of a free trade area (FTA), with an eye on more than doubling bilateral trade to $10bn.
While a joint study group will look into the FTA possibility, various arms of the two governments and business communities of the two countries will work on ways to boost investment as well as trade. Visiting PM Junichiro Koizumi set the tone by emphasising that Japan was India’s friend, and called on Japanese corporate leaders to consider ways to boost ties with Indian counterparts.
Japan has also proposed a fast-track railway quadrilateral, connecting the metros, designed especially for freight operations. The mammoth project - estimated to cost Rs 25,000 crore - would serve as an example of Japan’s interest and long-term commitment to India.
During a meeting with India Inc, Mr Koizumi made it clear that improving trade and economic ties was a priority. He also made no bones about his desire for an enhanced engagement with India.
“I want to strongly emphasise that India has Japan as a friend in Asia,” the Japanese premier said.
He refuted the view that bilateral trade and flow of investment from Japan to India was stagnating. Mr Koizumi said growth in bilateral trade during ’04 was around 16%.
“There are 300 Indo-Japan joint ventures in India and it is the third largest investment destination for Japanese companies, after China and Thailand,” he added.
Responding to India Inc’s call for enhanced economic relations, he said: “Japan and India need each other more than ever in order to grow and prosper.” He also noted that the whole world was watching the ‘breathtaking’ progress of India. Mr Koizumi also expressed a keen interest to work together with the East Asian community.
The first Japanese prime minister to visit India since Yoshiro Mori in ’00, Mr Koizumi also drew attention to his ‘premonition’ about an Asian century, which would be a new era.
Commerce and industry minister Kamal Nath urged the Japanese to invest more in Indian infrastructure projects and highlighted the proposed quadrilateral, which will ensure fast-track freight movement between key cities like Delhi, Mumbai, Kolkata and Chennai. There is tremendous scope for investment in telecom, power and construction, he added.
He also called for greater market access to Indian agri products in Japan. Avoiding contentious issues like rice, India and Japan can focus on other items like fruits, vegetables and marine products, he added.
Representatives of CII, Ficci and Assocham called for greater exchanges between the two countries and the need for improving awareness about each other’s potential. They called for greater Japanese investment in India and market access for Indian products.
