INDIA, JAPAN TO ENHANCE TRADE & INVESTMENT TIES
JAPANESE TRADE MINSTER MEETS KAMAL NATH
Date : 25 Aug 2004
Location : New Delhi
India and Japan have decided to enhance the trade and investment ties from the current levels, which are well below the potential that exists between the two countries. This was indicated at a meeting between Shri Kamal Nath, Union Minister of Commerce & Industry and Mr. Shoichi Nakagawa, Minster of Economy, Trade and Energy of Japan, here today. Both the Ministers stressed the need to work out a suitable mechanism that would lead to a positive effect on the bilateral trade and investment relations.
During the meeting, Shri Kamal Nath said that Indian economy was showing robust growth with manufacturing as a major contributor to it and added that India had the capacity to become manufacturing hub in this part of the world. The visiting Minister said that Japanese business community had specific areas of interest in terms of trade and investment and pointed out the areas of energy, automobile and textiles as the sectors for cooperation. He noted that Japan imported almost 100% of its iron & ore minerals and requested to extend the contract of Indian supply to Japan. The Indian Minister said that the old agreement with Japan for the supply of iron & ore was valid till 2006 and added that there was enough time to see how it could be extended. The two Ministers also discussed issues of WTO and emphasised the need for broader cooperation on multilateral issues.
Japan’s share in India’s overall trade is 3.10%. During 2003-04, the bilateral trade was of the order of US $ 4.35 billion indicating a growth of 18% as compared to the corresponding period of last year. The major items which have registered growth in exports to Japan are oil meals, primary and semi finished iron & steel, ferro alloys, plastic and linoleum products and project goods etc.