Trade with Japan poised for big leap

Trade with Japan is expected to reach $25 billion by 2014 from $14.7 billion in 2010-11, an increase of 70 per cent. Japanese imports from India have grown 21.5 per cent to 54 billion yen in March this year. 

Speaking at a session organised by EEPC India, Japanese consul-general Mitsuo Kawaguchi said, “Japan’s total imports the world over as on March stood at 6,287 billion yen, an increase of 10.5 per cent over the same period last year. Of this, total imports from India stood at 54 billion yen, a growth of 21.5 per cent.”

“While Japanese import is showing a rising trend, the Comprehensive Economic Partnership Agreement (Cepa) signed between the two countries will unfold new opportunities,” he said. 

He added that engineering exporters might find it difficult to gain a foothold in Japan if they did not meet Tokyo’s high quality standards.

India-Japan trade had stood at $4.1 billion in 2001. Engineering products have contributed more than 40 per cent to the total trade. At present, engineering goods and services from India constitute only 0.3 per cent of Japan’s total import. An Ernst & Young study has indicated Japan to be the core market with high potential for engineering products.

“Cepa gives India an access to the $5 trillion GDP of Japan. About 94 per cent of trade tariffs between the two countries will be eliminated within 10 years,” he said.

Japan’s import of industrial products from India as on March constitute the following — iron and steel ($243 million), pig iron ($16 million), ferro alloy ($240 million), iron and steel wire and bars ($2.2 million), flat-rolled products ($1.3 million), tubes, pipes and fittings ($0.6 million) and auto parts ($43 million).

Textile exports

India is looking to set textiles export target at $38 billion this fiscal, 12 per cent higher than the previous year.

“Though there is economic uncertainty in the US and Europe, growing demand in new markets such as Latin America and Africa will help India’s textiles exports,” a senior textiles ministry official said.

Textiles export was about $34 billion in 2011-12 against $26.8 billion in 2010-11.

The US and Europe account for over 50 per cent of the country’s exports.