India - Japan Commercial Relations India - Japan Commercial Relations

India - Japan Commercial Relations

India-Japan Bilateral Commercial Relations

Economic relations between India and Japan have vast potential for growth, given the obvious complementarities that exist between the two Asian economies. Japan's interest in India is increasing due to variety of reasons including India's big and growing market and its resources, especially the human resources. The signing of the historic India-Japan Comprehensive Economic Partnership Agreement (CEPA) and its implementation from August 2011 has accelerated economic and commercial relations between the two countries. During the visit of Hon’ble Prime Minister of Japan Mr. Fumio Kishida to India in March 2022, both the Prime Ministers expressed intention to realize JPY 5 trillion of public and private investment and financing from Japan to India in the next five years, to finance appropriate public and private projects of mutual interest.

2. Japan’s bilateral trade with India totaled US$ 20.57 billion during FY 2021-22. Exports from Japan to India during this period were US$ 14.39 billion and imports were US$ 6.18 billion. Japan’s exports to India were 2.35% of India’s total imports and India’s exports to Japan were 1.46% of India’s total exports. This underlines that there remains a big potential. The export-import statistics for the last five years as per India's Ministry of Commerce data bank are as follows:

( in US$ billion)

Year

2015-16

2016-17

2017-18

2018-19

2019-20

2020-21

2021-22

India's export to Japan

4.66

3.85

4.73

4.86

4.52

4.43

6.18

India's import from Japan

9.85

9.75

10.97

12.77

12.43

10.9

14.39

India-Japan

bilateral trade

14.51

13.60

15.71

17.63

16.95

15.33

20.57

(Source: Department of Commerce)

India’s top 10 Exports to Japan

(in US$ million)

SN

HS Code

Commodity

2020-21

2021-22

1

27

Mineral fuels, Mineral Oils and products of their distillation; bituminous substance; mineral waxes

495.08

981.8

2

29

Organic Chemicals

613.85

696.05

3

85

Electrical machinery and equipment, parts there of; sound recorders and reproducers; Television image and Sound recorders and reproducers and parts

107.70

516.53

4

84

Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof

354.91

478.85

5

03

Fish and Crustaceans, molluscs and other aquatic invertabrates

398.98

433.24

6

71

Natural or Cultured pearls, precious or semiprecious stones, pre.metals, clad with pre. metal and articles thereof; Imit. Jewelry; coin

382.04

394.43

7

72

Iron and steel

151.28

354.08

8

87

Vehicles other than railway or tramway rolling stock, and parts and accessories thereof.

172.41

328.71

9

76

Aluminium and articles thereof

114.49

316.54

10

38

Miscellaneous chemical products

170.70

242.44

(Source: Department of Commerce)

India’s top 10 imports from Japan

(in US$ million)

SN

HS Code

Commodity

2020-21

2021-22

1

84

Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof

2147.03

2702.62

2

28

Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, or radi. Elem. or of isotopes.

1014.00

1660.5

3

85

Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts

1047.21

1317.65

4

39

Plastic and articles thereof.

941.18

1237.17

5

74

Copper and articles thereof

991.44

1193.58

6

72

Iron and steel

679.61

1011.55

7

29

Organic chemicals

661.18

776.88

8

87

Vehicles other than railway or tramway rolling stock, and parts and accessories thereof.

418.92

762.9

9

90

Optical, photographic cinematographic measuring, checking precision, medical or surgical inst. and apparatus parts and accessories thereof.

558.99

699.54

10

38

Miscellaneous chemical products

239.99

356.51

(Source: Department of Commerce)

3. India-Japan CEPA: The 6th Joint Committee Meeting under India-Japan CEPA was held on 15th January 2021 through VC. The meeting was co-chaired by Dr. Anup Wadhawan, Secretary, Department of Commerce, Government of India and Mr. Hiroshi Suzuki, Senior Deputy Minister for Foreign Affairs, Government of Japan.

4. The Embassy of India exchanged Note Verbale with the Japanese Ministry of Foreign Affairs on 29 September, 2016 for the implementation of the Protocol amending the Indian-Japan DTAC (The Protocol entered into force on 29 October 2016). The Protocol provides for internationally accepted standards for effective Exchange of Information in tax matters and that both India and Japan shall lend assistance to each other in the collection of taxes. These provisions will help in preventing international tax evasion and tax avoidance.

5. Cooperation in Skill Development: The Ministry of Economy, Trade and Industry (METI), Japan and the Ministry of Skill Development and Entrepreneurship, India signed an MOC in November 2016 to facilitate the JIMs and JEC projects which aims to train 30,000 floor shop leaders and engineers to Japanese standards in the next 10 years. 22 JIMs and 8 JEC have been launched in India till date. India and Japan signed a MoC on TITP (Technical Intern Training Program) in October 2017 with National Skill Development Corporation (NSDC) as the implementing body for TITP.

The Memorandum of Cooperation (MoC) between India & Japan on a Basic Framework for Partnership for Proper Operation of System Pertaining to "Specified Skilled Worker" (SSW) was signed on 18 January 2021 which will further promote the movement of skilled workers from India to Japan in designated 73 operations in 14 specified industries fields / job categories and thus marks a further step to augment India-Japan collaboration in the area of skill development. In this regard, Japan Foundation Test for Basic Japanese (JFT-Basic), Nursing care skills evaluation test and Nursing care Japanese language evaluation test were held in January 2022, in Gurugram, India for the first time.

6. India-Japan Digital Partnership (IJDP) and Start-up Hub: An “India-Japan Digital Partnership” (I-JDP) was launched during the visit of Hon’ble Prime Minister Shri Narendra Modi to Japan in October 2018, furthering existing areas of cooperation as well as new initiatives within the scope of cooperation in S&T/ICT, focusing more on “Digital ICT Technologies”. This also incorporates setting up “Start-up Hub” between India and Japan. MeitY will be nodal agency to implement it from Indian side with Ministry of Communications (MoC), DIPP, NITI Aayog & other stakeholders and METI from Japanese side with MEXT and MIC & other stakeholders from Japanese side. First Startup Hub was established in Bengaluru by JETRO to identify select Indian start-ups for Japanese market and for potential Japanese investors. Thereafter, Startup-India (under Invest India) and Japan Innovation Network (JIN) signed an MoU on innovation collaboration with a focus on SDGs (Sustainable Development Goals) connecting two start-up eco-systems in June 2018. Invest India also launched an on-line portal for the Start-up hub. In August 1, 2020, the Japanese Government announced that it would provide financial assistance to 10 Japanese companies planning to start new business in India in cooperation with Indian IT companies as part of the Japan-India Digital Partnership. The objective is to support Japanese companies’ utilization of IT talents in India. The 7th Joint Working Group on IT & Electronics (Digital Partnership) was held on September 9-10, 2020 through Video Conference between MeitY, India and METI, Japan with participation of relevant government stakeholders and industry participation. The 7th Joint Working Group under India-Japan ICT Comprehensive Cooperation Framework was also held on May 13, 2022 through hybrid mode. The MoU on ICT between India and Japan was signed on January 15, 2021 by Telecom Minister of India and MIC Minister of Japan.

7. India-Japan Textile Cooperation: A Memorandum of Understanding was signed between Textiles Committee, Ministry of Textiles, Government of India and M/s Nissenken Quality Evaluation Centre, Japan on January 27, 2021 to provide required support to textile’s trade and industry for ensuring quality as per the requirement of Japanese buyers through Testing, Inspection & Conformity Assessment, Training & Capacity Building, Research & Development (R&D) and Consultancy.

8. India-Japan Steel Dialogue: This dialogue is being established as an Institutional Mechanism to strengthen the relationship and cooperation in steel sector between India and Japan by improving the processes of steel production & product mix and safety of work place. The Memorandum of Cooperation on Steel sector was signed on December 22, 2020.

9. Patent Prosecution Highway (PPH): During the India-Japan Summit in October 2018, both the Prime Ministers of India and Japan concurred to start a bilateral Patent Prosecution Highway (PPH) program on a pilot basis in certain identified fields of inventions in first quarter of FY2019. Under the program, Japanese companies can request expedited examinations in India through simplified procedures, based on their applications whose claims have been determined to be patented in Japan. Before deciding to institute this trial run, the Japan Patent Office had signed a memorandum of cooperation with the Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry (MCI), India in June 2015, which has been allowing the countries to promote the development of an environment that enables applicants in Japan to register intellectual property rights quickly in India. A Joint Statement of Intent (JSOI) was signed in November 2019 as a symbolic initiative of both countries in the field of intellectual property is the India-Japan PPH Pilot Program. This PPH Pilot Program aims to promote work sharing in patent examination between the Office of the Controller General of Patents, Designs & Trade Marks (CGPDTM) in India and the Japan Patent Office. Under PPH, a patent application that has been granted a patent in the First Office can be granted a patent in the Second Office at an earlier date.

10. Supply Chain Resilience Initiative (SCRI): A trilateral Economic Ministerial level initiative on Supply Chain Resilience Initiative (SCRI) was launched on September 1, 2020 among Australia, India and Japan through video conference (VC), with an objective to ensure resilience of supply chain through diversification in Indo-Pacific region.

In this regard, a Trilateral Ministerial video conference was held by the Trade Ministers of India, Japan and Australia for formal launch of Supply Chain Resilience Initiative on 27 April 2021. The three Ministers Mr. Piyush Goyal, Hon’ble Minister for Commerce and Industry, India; Mr. Kajiyama Hiroshi, Hon’ble Minister for Economy, Trade and Industry, Japan and Mr. Dan Tehan, Hon’ble Minister for Trade, Tourism and Investment, Australia briefed about the measures taken by the respective countries during COVID-19 pandemic. The Ministers acknowledged that the COVID-19 pandemic was having an unprecedented impact in terms of lives lost, livelihoods and economies affected, and that the pandemic had revealed supply chain vulnerabilities globally and in the region. The Ministers also noted that some supply chains have been left vulnerable due to a range of factors. The Ministers instructed their officials to implement the following as initial projects of SCRI and further develop the Initiative: (i) sharing of best practices on supply chain resilience; and (ii) holding investment promotion events and buyer-seller matching events to provide opportunities for stakeholders to explore the possibility of diversification of their supply chains. During the meeting it was also decided to convene the trilateral Ministerial meetings more frequently. Second Trilateral Ministerial meeting was held on March 15, 2022.

11. India – Japan Industrial Competitiveness Partnership – A Memorandum of Cooperation between the Department for Promotion of Industry and Internal Trade (DPIIT) and Ministry of Economy, Trade and Industry (METI) on India – Japan Industrial Competitiveness Partnership was signed on November 16, 2021 to jointly explore the possibilities of enhancing India’s industrial competitiveness with a view to enhance the Special Strategic and Global Partnership between the two countries.

12. Trade Fairs, Exhibitions and Seminars: The Embassy of India in Tokyo actively conduct seminars, B2B meetings and G2B meetings in Tokyo and other prefectures to promote the investment opportunities in India. A list of Trade related events, BSM, Market expansion activities coordinated during FY2021-22 by the Embassy is as below:-

    • During FY2021-22 Embassy of India in association with Start up India organized 5 Virtual Pitching Events by Indian Start-ups to Japanese investors. The events were held in various sectors such as Finance, Urban Services, Education sector, Industry 4.0 and Food sector.

    • During FY 2021-22 Embassy of India in association with The National Association of Software and Service Companies (NASSCOM) organized 3 Virtual Start-up VC Connect Sessions in which startups from diverse sectors from India participated.

    • The Embassy of India in association with the Japan Tea Association (JTA), Tea Board of India organized 223rd and 224th Indian Tea Seminar called “Chai-Varta” in the month of July, 2021 and October, 2021 respectively. A webinar titled “Festival of Indian Tea” was also held in February 15, 2022. The objective of these events is to promote Indian tea in Japan and also to increase collaboration among Indian and Japanese companies in Tea sector.

    • The Embassy of India in Tokyo in association with Invest Punjab, The State Government of Punjab, Japan External Trade Organization(JETRO) and supported by Japan-India Business Co-operation Committee organized a webinar titled “INDO-JAPAN Investment Symposium: Investment Opportunities in the State of Punjab” on April 16, 2021 to sensitize Japanese stakeholders about industrial policy of Punjab and emerging investment opportunities in the State of Punjab in India.

    • The Embassy of India, Tokyo in association with the Department of Economic Affairs, Ministry of Finance, Government of India; Gujarat International Finance Tec-city (GIFT); Japan Financial Services Agency with support from Japan External Trade Organization (JETRO) organized the “India-Japan Financial Symposium: Financial Reforms and Emerging Opportunities in India” on April 22, 2021 to appraise the Japanese stakeholders about liberalization of insurance, GIFT, overall reforms in financial sector and emerging opportunities, get the feedback of Japanese stakeholders, and explore the opportunities for bilateral business collaboration in these areas.

    • The Embassy of India, Tokyo coordinated & facilitated a round table discussion among senior officials of Ministry of Health, Labour and Welfare, Pharmaceuticals and Medical Devices Agency (PMDA) of Japan and Pharmaceuticals Export Promotion Council of India, senior representatives of Pharma Associations from India and 25 Indian pharmaceutical Industry on May 7, 2021.

    • The Agricultural and Processed Food Products Export Development Authority (APEDA), Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce & Industry, Government of India, and Embassy of India, Tokyo jointly organized the “Mango Festival of India 2021 & Buyer-Seller Meet” on 28th May 2021 to sensitize the Japanese consumers, buyers, and importers of mango about the various varieties and quality of Indian mango.

    • The Embassy of India, Tokyo coordinated participation of Japanese stakeholders from Japan at the 1st India-Japan Forum on July 20, 2021 organized by the Ministry of External Affairs, New Delhi and Ananta Centre. The Forum served as a platform for exchange of ideas bringing together government, industries, think-tanks and media promoting India-Japan Strategic and Global Partnership.

    • Directorate General of Foreign Trade, Government of India organized a 2-day virtual outreach event on July 29-30, 2021, titled ‘from India to the World’ in association with Invest India and Embassies of India in Tokyo, Washington and Abu Dhabi. The objective of the outreach event was to bring agricultural exporters from India and international buyers on one platform.

    • M/s Moonlink Corporation, JETRO and Embassy of India, Tokyo jointly organized a five day “India Week” webinar from August 2-6, 2021 to promote India - Japan collaboration by providing information to Japanese business persons, especially who are planning for collaboration / market entry to India.

    • As part of celebrations of India@75 and India-Japan@70, an India-Japan Footwear & Leather Products Buyer-Seller Meet was jointly organized by the Council for Leather Exports (CLE) and Embassy of India, Tokyo on August 25, 2021 to bring together the Indian manufacturers of footwear and leather products and Japanese buyers on one platform. 12 Indian leather exporters showcased their products to Japanese stakeholders.

    • As part of celebrations for India@75 and India-Japan@70, a webinar on “Business Opportunities in India – Chiba” was jointly organized by the Embassy of India, Tokyo; JETRO, Chiba and The Chiba Chamber of Commerce and Industry with the support of Chiba Prefectural Government, City Government of Chiba and Japan International Trainee & Skilled Worker Cooperation Organisation (JITCO) on September 01, 2021 to promote the business opportunities in India among the companies located in Chiba prefecture.

    • The Embassy of India, Tokyo participated in the two day hybrid event “Vanijya Utsavam” with the theme “Showcasing India as a Rising Economic Force” on 21st - 22nd September, 2021” organised at Vijayawada, Andhra Pradesh by the State Government of Andhra Pradesh, Government of India, DGFT and Plastics Export Promotion Council (PLEXCONCIL).

    • The Embassy of India, Tokyo participated at the Vanijya Utsav 2021 event: ‘Interaction with Indian Missions Abroad for enhancing exports from the State of Odisha’, organised by DGFT, State Government of Odisha & Indian Oilseeds and Produce Exports Promotion Council (IOPEPC) as a part of Vanijya Utsav 2021 and Azadi Ka Amrit Mahotsav (75years of Independence) celebrations on September 22, 2021.

    • The Embassy of India, Tokyo supported the webinar on ‘Understanding the legal aspects associated with a business contract executed with a Japanese counterpart, which would be helpful for fruitful negotiations’ organized by M/s Atsumi & Sakai, Tokyo and FICCI, Japan on October 7, 2021.

    • The Embassy of India, Tokyo supported the two-day India-Japan Digital Business Matching Session organized by NASSCOM in partnership with Deloitte on October 27-28 October, 2021.

    • The Embassy of India, Tokyo coordinated the participation of 8 Indian companies at the T-Messe 2021 Toyama General Manufacturing Industry Trade Fair virtual exhibition organized by Toyama Prefectural Government during 28th - 30th October, 2021.

    • NASSCOM in partnership with Embassy of India, Japan, JETRO and Nomura Research Institute (NRI) as knowledge partner organized an event to launch a research report on October 29 October, 2021.

    • The Embassy of India, Tokyo and JETRO, Nagoya supported by Aichi Prefectural Government, City Government of Nagoya and Japan International Trainee & Skilled Worker Cooperation Organisation (JITCO) organized a webinar on “Business Opportunities in India – Nagoya” on November 11, 2021.

    • The Department of Animal Husbandry and Dairying, Government of India and Invest India in association with Embassy of India, Tokyo and High Commission of India, Australia organized the “India Investment & Trade Opportunities Session on Animal Husbandry and Dairying Sector for Australian and Japanese Companies” on November 12, 2021 to promote the Indian Animal Husbandry and Dairying sectors to Japanese and Australian companies.

    • The Embassy of India, Tokyo supported and participated at the "Special Session" on "India and Japan Partnership @70 - Investment, Trade and Beyond" held on December 15, 2021 during the three-day CII Partnership Summit from 13th - 15th December, 2021.

    • The Embassy of India, Tokyo supported and participated at the session entitled “India-Japan Pharmaceutical Cooperation and Regulatory Developments” held on December 17, 2021 during “India-North East Pharma Business Meet” with countries of Japan, China and South Korea from 17th - 21st December, 2021

    • The Embassy of India, Tokyo supported and participated at the "Business Connect Webinar Series" organized by ICICI Bank on 13th January, 2022. The objective of the webinar is to impart knowledge on opportunities, tools and strategies to ICICI Banks’ export & import customers and other stakeholders that can be used for their business.

    • As part of celebrations for India@75 and India-Japan@70, an India-Japan webinar on “Exploring Tamil Nadu and It’s Potential Agricultural & Processed food products” was jointly organized by the Embassy of India, Tokyo and Agricultural and Processed Food Products Export Development Authority, India (APEDA) on February 7, 2022 to promote the business opportunities in Agri and Food processing sector from Tamil Nadu among the companies in Japan.

    • The Embassy of India, Tokyo supported and participated at the “Indian Handwoven and Home Textiles Sourcing Virtual Buyer-Seller Meet with a specific focus on Japan” held from 8th - 10th February, 2022. The objective of the event is to offer an ideal platform for Indian manufacturers and Japanese importers/buyers to continuously connect and network as well as to keep their presence in this sector.

    • The Embassy of India, Tokyo in association with MPEDA, India organized a Virtual Buyer-Seller Meet between M/s Hamasho, Japan and marine products exporters from India on February 18, 2022. 8 Indian exporters attended the meeting to promote their products to the Japanese company.

    • As part of the India@75 and India-Japan@70, the 3rd FPMAJ International Committee Asia Seminar (India) was organized by The Federation of Pharmaceutical Manufacturers’ Association of Japan (FPMAJ) in association with the Embassy of India, Tokyo on March 4, 2022. The objective of the seminar was to discuss business opportunities and collaboration between India and Japan in pharmaceutical sector.

    • As part of celebration for India@75 and India-Japan@70, the Embassy of India, Tokyo in association with Spices Board of India organized the India-Japan Webinar titled "Indian Spice Fair" on March 17, 2022 to promote Indian spices among Japanese stakeholders. The webinar was followed by a networking session between Japanese and Indian companies.

    • As part of celebrations for India@75 and India-Japan@70, the Embassy of India, Tokyo in association with Agricultural and Processed Food Products Export Development Authority (APEDA) organized India-Japan Webinar on "Organic Products" on March 24, 2022 to promote Indian organic products among Japanese stakeholders. The webinar was followed by a networking session between Japanese and Indian companies.

    • The Embassy of India, Tokyo in association with APEDA, Invest India and ODOP organized the “ 2nd Indian Mango Festival” on March 28, 2022 for the promotion of various varieties of Indian Mangoes.

July 27, 2022