Review of CEPA Implementation
Officials from India and Japan examined key aspects of the CEPA’s implementation and discussed steps to unlock its full potential. The agreement, which provides a framework for trade in goods and services as well as investment flows, remains central to the economic partnership between the two nations.
Both delegations emphasized the importance of strengthening cooperation in line with the shared vision articulated during the Annual Summit held in August 2025. The discussions reflected a commitment to further diversify and enhance bilateral trade and investment ties.
Call for Diversified and Balanced Trade
During the deliberations, Commerce Secretary Rajesh Agrawal underlined the need for a more diversified and balanced trade relationship. He pointed out the strong complementarities between the two economies — Japan’s technological expertise, capital strength, and advanced manufacturing capabilities, and India’s skilled workforce, vast domestic market, and rapid economic growth.
He stressed that both countries must harness the full benefits of CEPA, including provisions related to the movement of natural persons, as envisioned by leaders at the summit level. According to officials, improving trade balance and expanding sectoral cooperation will ensure long-term sustainability in economic ties.
Shri Agrawal highlighted significant export potential for India in textiles, pharmaceuticals, agriculture, and services, noting that these sectors could contribute meaningfully to narrowing the trade gap.
Engagement with Japan’s METI
On the sidelines of the Joint Committee Meeting, Shri Agrawal met the Vice Minister of Japan’s Ministry of Economy, Trade and Industry (METI). The discussions covered bilateral trade, investment flows, improvement of the business environment, and preparations for the upcoming 14th Ministerial Conference of the World Trade Organization (WTO).
The talks focused on enhancing regulatory predictability and facilitating smoother market access for businesses in both countries. Officials also discussed ways to improve ease of doing business and encourage greater private sector participation.
Industry Roundtable and Roadshow
The Commerce Secretary also interacted with leading representatives of Japanese industry during a roundtable discussion. These engagements aimed at encouraging deeper collaboration between Indian and Japanese businesses.
In the evening, the Embassy of India in Japan, in partnership with the Confederation of Indian Industry (CII) and Keidanren, organized a Trade and Investment Roadshow in Tokyo. The event focused on promoting Indian exports and attracting higher investment flows from Japanese companies.
Addressing participants, Shri Agrawal highlighted India’s conducive policy environment for trade and investment. He referred to ongoing reforms aimed at simplifying regulatory processes and enhancing ease of doing business, reinforcing India’s position as an attractive investment destination.
CEPA as a Stable Framework
Officials reiterated that the CEPA provides tariff certainty and regulatory stability, creating a facilitative environment for deeper collaboration. The agreement is seen as instrumental in strengthening India and Japan’s role as trusted partners in global value and supply chains.
The meeting concluded with both sides reaffirming their commitment to expanding economic engagement and ensuring that the CEPA continues to deliver tangible benefits.
