India and Japan inked a “Comprehensive Economic Partnership Agreement (CEPA),” short for a trade agreement that is just short of a free trade agreement.
” This Agreement is the most ambitious agreement signed by India so far and covers trade in goods, services and investment under its ambit,” the government of India said in a statement on the subject.
90% of India’s export items are covered by the agreement, while 95% of Japan’s exports to India are covered by the deal.
The deal will reduce the taxes and tariffs on the items, leading to increased flow of trade in the items and lower prices for the consumers of these items.
India has kept sensitive items out of the agreement, such as fruits, spices, wheat, basmati rice, edible oils, wines and spirits and industrial products such as auto and auto parts.
Indian items that are expected to be exported in larger quantities to Japan are pharmaceuticals, instant tea, seafood, readymade garments, petrochemicals and chemical products, jewellery and cement.
In the services sector India the groups of people who will find it easier to export their services to Japan include contractual suppliers, professionals such as accountants, researchers, tourist guides and management consultants and computer engineers, mechanical,
electrical, construction, industrial, design engineers and project management specialists. It will also include yoga practitioners, classical musical and dance practitioners, chefs and English language teachers.
Negotiations for easing the entry of Indian nurses and care givers are currently on, Indian government said.
