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India and Japan have decided to strengthen bilateral economic relationship as two of the major constituents of an Asia wide economic network which is now underway with the conclusion and negotiation of various Free Trade Agreements (FTAs) and Economic Partnership Agreements (EPAs) with ASEAN and its member countries. According to a joint press release – “Towards Strengthening the Japan-India Economic Relationship” – issued in Tokyo last evening at the conclusion of the official visit of Shri Kamal Nath, Union Minister of Commerce & Industry, to Japan, “India is coming under the spotlight as a centre of global economic growth (while) the Japanese economy is recovering steadily and hence, the situation is ready for strengthening of Japan-India Economic relationship”.
Japan is keen to establish a close partnership with India in the manufacturing sector, the statement says. “The Indian government is actively addressing the development of the manufacturing industry, which has a huge effect on job creation, for example, by establishing the National Manufacturing Competitiveness Council (NMCC) to respond to the need to provide job opportunities to a growing number of people and the need to improve the standard of living of ordinary people. Meanwhile, a growing number of Japanese companies are beginning to recognize India as a promising market, with its expanding middle class and stable supply of superior labor forces. They are beginning to place India as one of the important bases in their strategy for production, logistics and sales particularly in the situation that countries in the Asian region are engaging in FTAs/EPAs positively more than ever”, he said.
Further, Shri Kamal Nath and Mr. Shoichi Nakagawa, Minister of Economy, Trade and Industry of Japan, have agreed on an action plan to reinforce the economic relationship between the two countries. The action plan aims to: a) improve the investment environment in the manufacturing industry through closer interaction among governments and private sector both the economies including the effective use of Special Economic Zones (SEZs); (b) make further efforts by Japan to support manufacturing industry in India including through technical experts and training; (c) encourage agencies like Japan External Trade Organisation (JETRO) and India Trade Promotion Organisation (ITPO) to enhance investment related activities; and (d) enhance supply and investment cooperation relating to natural resources.
The two Ministers had earlier announced the establishment of a Policy Dialogue in January 2005 to explore the possibility of a Japan-India Economic Partnership Agreement and its first meeting was held in New Delhi last week. The fourth India-Japan Investment dialogue to promote investment between the two countries was held in Tokyo yesterday.
Shri Kamal Nath and Mr. Nakagawa also exchanged views on the current status of the Doha Development Agenda (DDA) negotiations in the World Trade Organisation (WTO) and their respective positions. They agreed that “it is critically important to deepen the dialogue between the two Ministers and strengthen the partnership between the two countries toward the sixth WTO Ministerial to be held in Hong Kong this December”.
SB/MRS
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