India - Japan Economic Relation Boost - Aspirant Learning

As a boost to India – Japan economic relation, the Indian Prime Minister and Japanese industrialist held a meeting.

Areas of focus are investment plans, technology transfer, and start-ups.
Japan is partnering India in key sectors including infrastructure, technology, innovation, start ups and more.
One sidelining of meeting the Government of India and the Government of the United States signed an Investment Incentive Agreement (IIA).

The Indian Prime Minister interacted with Indian community members in Tokyo and spoke of early Indian travellers to Japan such as Swami Vivekananda and Rabindranath Tagore.

Japan is considered as vital economic partner of India which operate interdependently that
- For Japan India is a potential growing market and source of manpower for their growing industries.
- For India, Japan is a source of Foreign Direct Investment (FDI) and better technologies.
In fiscal year 2018-19, Japan’s bilateral trade with India totaled US$ 17.63 billion.
- Petroleum goods, chemicals, elements, compounds, non-metallic mineral ware, fish and fish preparations, metalliferous ores and scrap, clothes and accessories, iron and steel products, textile yarn, fabrics, and machinery are among India’s main exports to Japan.
- Machinery, electrical machinery, iron and steel goods, plastic materials, non-ferrous metals, automobile parts, organic chemicals, metal producers, and other items are among India’s main imports from Japan.

Special Economic Partnership Initiative (SEPI) was sign in 2006 which include
- The Dedicated Freight Corridor-West (DFC-W) project
- The Delhi-Mumbai Industrial Corridor (DMIC) project
- The establishment of multi-product special economic zones/clusters
- Free trade and warehousing zones at select locations, and encouraging Japanese companies to invest in India

The Comprehensive Economic Partnership Agreement (CEPA) between India and Japan, which entered into force in August 2011.
The first Ministerial-level Economic Dialogue between India and Japan was conducted in New Delhi in 2012.
India continues to be Japan’s top beneficiary of official development assistance (ODA)

Japanese investment in the infrastructure projects like
- Bullet Train Connectivity
- Western Dedicated Freight Corridor
- Delhi Mumbai Industrial Corridor
- Chennai Bengaluru Industrial Corridor
- Delhi Metro Projects
- Asia – Africa Economic Growth Corridor

In India, twelve Japan-India Institutes of Manufacturing (JIM) have been founded by Japanese corporations.
The two countries have agreed to a Bilateral Swap Arrangement under which their central banks would be able to exchange local currencies for up to $75 billion.

India – Japan Economic Relations play a vital role in Asia’s economic growth as a growth engine and check on China’s cheque book diplomacy and neo-colonialism in the Indian Ocean Region.

Pic Courtesy : Pixabay

Content Source : The Hindu

India – Japan Economic Relation Boost