Investing is the best way to secure your future. Investment is very necessary for every person. Real estate is an asset form with limited liquidity relative to other investments. Investing in real estate has become increasingly popular over the last five years. Although the real estate market has plenty of opportunities for making big gains, buying and owning real estate is a lot more complicated than investing in stocks and bonds.

selectively allows you to enjoy tax benefits; By investing wisely you can improve your standard of living and create wealth for the future.

The major reason is most peoples are not interested in a real estate investing is that it requires a lot of money. The real estate boom in India is interlinked directly to the industrial and economic growth with stability and strong presence of multinational companies throughout India have made the preferred destination for investment in real estate sector. India has been adjudged as one of the fast growing economic clubbed with buoyant stock markets and healthy economic growth which have enabled India to emerge on global arena.


Real Estate is a very big sector for Investment. It involves purchasing of property for more profits. Magnitude of benefits of investment whether it is done in townhouses, single family house, luxury condos or condominiums, pre-launched projects or properties and Resale projects. Some of the benefits of investment in real estate are enumerated below:-

• Rental income : It is one of the most liked benefits of investment in real estate. People who do not want to sell their constantly appreciating properties; they construct it for additional benefit and rent out same for enjoying regular monthly rental income which makes them financially sound for further investments.

• Appreciation : Most of the people invest in real estate for earning profit on short or long term basis. The longer the period the higher the profit and as and when an investor finds best opportunity, he enjoys the benefits of investment in real estate.

• Best source of investment : If a person wants to invest in different sectors such as trading, manufacturing, education and of course real estate. Far sighted people would prefer to invest in real estate as it the safest of all because of the fact that benefits of investment in real estate will fetch better returns without much labour as compared to other sources.


Where to Invest Your Hard Earned Money “Commercial properties in India”

Market in commercial properties in India is attaining new heights day-by-day and its credit goes to the upcoming new commercial project throughout India. The basic reason behind this fact is that consumer market is expanding rapidly and innumerable foreign buyers are shifting their business centers to India and it has given a catalytical effect to the development of commercial properties in India.

Prominent commercial real estate developers have encompassed almost all metropolitan and urbanized cities of the country not only for rapid construction and sale of commercial properties in India but are largely involved in re-sale, renting and leasing of the same. Commercial properties in India mainly consist of multiplexes, shopping malls, branded retail outlets as well as IT spaces etc. All big developers and builders like DLF, Parsvnath, Omax, MGF, Ansals API, Godrej and India bulls etc. are making huge profits from commercial properties in India.

Since the segment of commercial properties in India is experiencing high annual appreciation as compared to the residential properties, even more and more individuals are investing in commercial properties in India for becoming a pride owner of franchise which fetches them a handsome monthly rental income.
For more commercial projects detail, Visit : http://www.zameen-zaidad.com/commercial-project.aspx

Investment on office space in India

Strong industrialization and commanding business heights clubbed with more and more expansion in the field of information technology (IT) and ITES as well as development of export corridors in different SEZs throughout the country, have given a catalytical effect to investment in office space in India. For running a business, whether it is in the field of manufacturing, trading or any other business like real estate etc., all need an office space to run their day to day business activities smoothly. Keeping this aspect in view, it becomes imperative to have the best office address for flourishing a business and this necessitate for investment in office space in India at prominent locations.

All manufacturerers, BPO companies, banking, financial, insurance and telecom sector, whether big or small, try to open more and more offices in reputed commercial complexes not only throughout the country but in overseas countries also. Thus more and more office space requirement keeps on cropping up which results investments in office space in India. Likewise, more and more overseas MNCs have made heavy investments in office space in India throughout the country for smooth operation of their business activities.

Investment in office space in India provides two options for MNCs i.e. to take office space on lease/rental basis and or purchase same as per the rules and guidelines laid down by the government. The most important thing behind investment in office space in India is that people prefer to buy an office space than to take on lease or rent because of the fact that on one side the value of the office space keeps on appreciating while on the other side one has not to pay any monthly rent& save substantial amount on regular basis and thus a buyer always prefer investment in office space in India. Needless to mention, if the office space is given on rent, it fetches regular unearned income which places a person in strong financial position for further investment as per his choice.
For best options to investment in office space in India, please visit this source: http://www.zameen- zaidad.com/office-space-for-sale-and-rent.aspx

INVESTMENT IN FUTURE PROPERTY WITH ASSURED RETURN

As compared to various other assured return investment sources viz-a –viz bank, P.O & Companies fixed deposits, mutual funds , share market , insurance policies & few other businesses, investment in assured return properties has been adjudged as one of the best investment options.

We invest in assured return properties because it gives dual benefit i.e. on one side an investor gets monthly unearned fixed income while on other side the value of property appreciates considerably. While an assured return investor in properties is sure to get huge monthly unearned income, he can further re-plan to invest this assured income in some other better field according to his choice. As compared to investments in other fields, investment in assured return properties provides a high social status and sometimes multiplies the investment by several times even in a short spell of time. One of the main and important benefit to invest in assured return properties is that it provides acute freedom and peace to such investors and they can handle the unearned monthly assured return at leasure and they can devote their full time in religious pilgrimage activities of their choice.

For more details, you can visit this source: http://www.zameen-zaidad.com/future-property-with-assured-return.aspx


JBIC - DEVELOPING INDIA’S INFRASTRUCTURE FOR INDUSTRIAL NEEDS

Mr. Joichi Kimura, Chief Representative; and Mr. Kenji Sasaki, Representative, JBIC, elaborate on the bank’s plan for infrastructure development in India

1. Infrastructure development is the key agenda under India's 12th Five year Plan. What is Japan Bank for International Cooperation (JBIC’s) strategy to complement/ support India's infrastructure?

JBIC being Japanese government financial institution supporting overseas activities of Japanese companies is strongly committed to support Japanese companies participating in the Indian Infrastructure. India, has received major attention from Japanese firms in recent years as a market and production location. In the annual survey of Japanese manufacturing companies on their foreign direct investment conducted by JBIC, India ranked second (in the FY2011 survey) as a promising destination for operating business over the medium term. The survey also pointed out that underdeveloped infrastructure, unclear execution of legal practices and taxation system poses the greatest bottleneck to investment and business operations in India. One of the examples of JBIC support for infrastructure development is in Delhi Mumbai Industrial Corridor (DMIC) project which is an India-Japan cooperation project aiming to develop infrastructure, including industrial estates, power plants, logistics parks and so on, by focusing on a 150-kilometer band on both sides of the 1,483- kilometer freight rail line being planned between Delhi and Mumbai. Other example is support to Indian power projects procuring related equipments such as boiler, turbine and generator from Japanese joint ventures operating in India. Japan has cutting edge technologies for energy efficiency.

2. Does JBIC have special schemes to support environmentally friendly and energy efficient projects?

JBIC is ready to support efforts to preserve the global environment by utilizing advanced Japanese technologies. To achieve the Japan and India's common goal of reducing CO2 emissions, JBIC at the end of March 2011 committed two step loan to ICICI Bank of USD 200 million for on-lending to renewable energy, energy efficiency projects in India.

3. What is JBIC's involvement for DMIC?

JBIC commitment for DMIC is twofold. In December 2009, JBIC committed USD 75 million as loan to Project Development Fund of Delhi Mumbai Industrial Corridor Development Corporation Limited (DMICDC), which is to be utilized to support project development activities that will contribute to improve the international competitiveness of Japanese companies operating or planning to operate in the DMIC area. JBIC shall also support the India-Japan collaboration projects emerging under this initiative by using its financing tools such as Export Loans for Indian companies importing Japanese machineries/ equipments, Investment Loans for India-Japan joint venture projects and untied Loans for environment friendly projects.

4. Other than DMIC, what is JBIC's support for the projects in other region of India?

There are other key regions where Japanese companies are investing including Chennai and Bangalore. JBIC would be happy to support infrastructure projects around such corridors to improve the business climate of Japanese companies operating in India.
Courtesy – The Economic Times – Dt- 28-12-2011

Japan and India will re-affirm their Global Strategic Partnership

Japan-India relations have been expanding and deepening significantly in recent years. This is clearly reflected through the many high-level exchange visits taking place between the two countries at regular intervals, and the rising intensity of their engagement in the political, economic, defense and cultural spheres. Visits by the Minister of External Affairs of India, H.E. Mr. S.M. Krishna, to Japan, from October 28-30, followed by the Indian Defence Minister, H.E. Mr. A.K. Antony, from November 2-3, 2011, are the most recent ones among them.

Japan and India enjoy a tradition of annual mutual visits of the Prime Ministers. As part of this arrangement, the Prime Minister of Japan, H.E. Mr. Yoshihiko Noda, is expected to arrive on an official visit to India from 27 to 28 December 2011. It is expected that Prime Minister Noda's visit will elevate the bilateral relations to an even higher level. In the discussions between the two Prime Ministers, Japan and India will re-affirm their 'Global Strategic Partnership', and will exchange views on further cooperation in various fields.

India is recognized as a very promising and growing market, attracting more and more Japanese investment. Surveys conducted by our Embassy show that more than 812 Japanese companies are operating in India, creating a huge employment of at least 150,000 work force in various sectors. They are also actively involved in CSR activities worth more than Rs.476 million. The Comprehensive Economic Partnership Agreement (CEPA), which was signed earlier this year and came into force on 1 August 2011, will contribute significantly to the two countries' bilateral trade, and also help further integrating the East Asian economies.

After the great success of the Delhi Metro Rail project, a number of important infrastructure development projects with active Japanese participation are on the anvil within the framework of the Delhi Mumbai Industrial Corridor (DMIC) and in the southern region of India.

The year 2012 marks the 60th anniversary of the establishment of diplomatic relations between Japan and India. We hope that this milestone year will not only provide us with a platform for mutual understanding but also an opportunity to reflect on the global expectation from Japan and India in our common endeavours.

Akitaka Saiki Ambassador of Japan to India
Courtesy – The Economic Times – Dt- 28-12-2011

Reflection of Indo-Japan ties

The Mumbai Delhi Industrial Corridor is an mega infra-structure project of USD 90 billion with the financial and technical aid from Japan, measuring 1483 km between the political and business capitals of India

AMOU was signed in December 2006 between Vice Minister, Ministry of Economy, Trade and Industry (METI) of Government of Japan and Secretary, Department of Industrial Policy & Promotion (DIPP). A Final Project Concept was presented to both the Prime Ministers during Premier Abe’s visit to India in August 2007.

Finally Government of India has announced establishing of the Multimodal High Axle Load Dedicated Freight Corridor (DFC) between Delhi and Mumbai, covering an overall length of 1483 km and passing through the six States - U.P, NCR of Delhi, Haryana, Rajasthan, Gujarat and Maharashtra, with end terminals at Dadri in the National Capital Region of Delhi and Jawaharlal Nehru Port near Mumbai. Distribution of length of the corridor indicates that Rajasthan (39%) and Gujarat (38%) together constitute 77% of the total length of the alignment of freight corridor, followed by Haryana and Maharashtra 10% each and Uttar Pradesh and National Capital Region of Delhi 1.5 % of total length each. This Dedicated Freight Corridor envisages a high-speed connectivity for High Axle Load Wagons (25 Tonne) of Double Stacked Container Trains supported by high power locomotives. The Delhi - Mumbai leg of the Golden Quadrilateral National Highway also runs almost parallel to the Freight Corridor. This corridor will be equipped with an array of infrastructure facilities such as power facilities, rail connectivity to ports en route etc. Approximately 180 million people, 14 percent of the population, will be affected by the corridor’s development.

This project incorporates nine Mega Industrial zones of about 200-250 sq. km., high speed freight line, three ports, and six air ports; a sixlane intersection- free expressway connecting the country’s political and financial capitals and a 4000 MW power plant. Several industrial estates and clusters, industrial hubs, with top-of-the-line infrastructure would be developed along this corridor to attract more foreign investment. Funds for the projects would come from the Indian government, Japanese loans, and investment by Japanese firms and through Japan depository receipts issued by the Indian companies.

* Integrated Corridor Development Approach for DMIC
High impact/ market driven nodes - integrated Investment Regions (IRs) and Industrial Areas (IAs) have been identified within the corridor to provide transparent and investment friendly facility regimes. These regions are proposed to be self-sustained industrial townships with world-class infrastructure, road and rail connectivity for freight movement to and from ports and logistics hubs, served by domestic/ international air connectivity, reliable power, quality social infrastructure, and provide a globally competitive environment conducive for setting up businesses. An Investment Region IRs) would be a specifically delineated industrial region with a minimum area of over 200 square kilometers (20,000 hectares), while an Industrial Area (IAs) would be developed with a minimum area of over 100 square kilometers (10,000 hectares). 24 such nodes - 9 IRs and 15 IAs spanning across six states have been identified after wide consultations with the stakeholders i.e the State Governments and the concerned Central Ministries. It is proposed that 6 IR and 6 IAs would be taken up for implementation in the First Phase during 2008-2012 and rest of the development would be phased out in the next 4 years.

* The nodes identified for Phase-1 are:
Short listed Investment Regions (IRs):
• Dadri – Noida - Ghaziabad Investment Region in Uttar Pradesh as General Manufacturing Investment Region;
• Manesar – Bawal Investment Region in Haryana as Auto Component/ Automobile Investment Region;
• Khushkhera – Bhiwadi – Neemrana Investment Region in Rajasthan as General Manufacturing/ Automobile/ Auto Component Investment Region;
• Pitampura – Dhar – Mhow Investment Region in Madhya Pradesh
• Bharuch – Dahej Investment Region in Gujarat as Petroleum, Chemical and Petro Chemical Investment Region (PCPIR);
• Igatpuri – Nashik - Sinnar Investment Region in Maharashtra as General Manufacturing Investment Region;
* Short listed Industrial Areas (IAs):
• Meerut – Muzaffarnagar Industrial Area in Uttar Pradesh, Engineering/ Manufacturing;
• Faridabad – Palwal Industrial Area in Haryana, Engineering & Manufacturing;
• Jaipur – Dausa Industrial Area in Rajasthan, Marble/Leather/Textile;
• Neemuch – Nayagaon Industrial Area in Madhya Prdaesh
• Industrial Area with Greenfield Port at Alewadi/ Dighi in Maharashtra, Greenfield Port Based Organizational Structure & Project Implementation Framework:
It is envisaged that a four-tier system, as institutional framework, would be set up for the implementation of DMIC. It constitutes:
• An Apex body, headed by the Finance Minister with concerned Central Ministers and Chief Ministers of respective DMIC States as Members for overall guidance, planning, and approvals;
• A Corporate entity, Delhi Mumbai Industrial Corridor Development Corporation (DMICDC), specially envisaged to coordinate Project Development, Finance and Implementation, headed by a full time CMD and having representation from the central government, state governments and FIs;
• A State-level Coordination Entity/ Nodal Agency responsible for coordination between the DMICDC and various state government entities and the project implementing agencies/ special purpose vehicles.
• Project specific special purpose vehicles (SPVs) who would actually implement the projects. These SPVs can be owned by state Governments in terms of governance structure, Board of Directors etc. Some of these SPVs can also be formed by central/state governments and their agencies.

The corridor project likely to be implemented in two phases namely – Phase-I & Phase-II. An estimated $90 to $100 billion would be required to create the infrastructure in the first phase of the project. Japanese companies are expected to invest over $10 billion in the proposed corridor during the first phase.

Courtesy: www. dmic.co.in

JNTO is taking the Indian market quite seriously

Mr. Motonari Adachi, Executive Director, Singapore Office, Japan National Tourism Organization (JNTO), interacts with ET about the growth potential in tourism between India and Japan and initiatives being taken up JNTO in this regard

Q. How has your India strategy changed in the past few years?
Japan National Tourism Organization (JNTO) is taking Indian market quite seriously and is looking forward to welcoming Indian visitors to Japan. In the past majority of the Indian visitors who visited Japan were business travelers. Our strategy is to increase the market share of leisure travelers - and focusing on building relationships with Indian tour operators and travel agents, and Indian media.

Q. What is the importance of Indian market for you?
India is one of the 15 focus markets for JNTO. In 2011 JNTO has also established its presence in the Indian market for the first time. After the sad incident of the earthquake and tsunami, this year we also hosted visits for the travel trade and opinion leaders from different walks of the life. These included people from politics, economy, fashion and Indian movie industry to rebuild the confidence around the destination. As part of this initiative, Bollywood actress Dia Mirza was recruited to release a video message in support of Destination Japan.

Q. In times of global slowdown, do you expect Indians to travel and spend?
The Indian outbound travel market is rapidly expanding, and Japan only has a small percentage currently visiting the country. Additionally, India has not been so severely impacted by the economic downturn in the West and there is greater wealth and travel awareness amongst the middle and upper economic segments of Indian society. With all these factors, we feel that the Indian travel market to Japan is bound to grow steadily.

Q. What has been the number of tourists travelling from India and what is the kind of average spend over the past three years?
In 2010, Japan received approximately 70,000 visitors from India- of which 65% were traveling on business. From January to the end of November 2011, the number of Indian visitors to Japan marked 55,000 on preliminary figure basis, down by 12 % compared to the 62,527 from the same period of 2010. In 2012 we are targeting approximately 100000 visitors from India.

Q. How do you see this number rising?
We are initiating a sustained promotional campaign for Japan in India and are very optimistic and hope to achieve our arrival targets. For this we are organizing multiple activities including participation in SATTE (Delhi) and Outbound Travel Market (Mumbai) trade shows. We are also planning join advertising campaigns with the travel agents and negotiating joint support from our airline partners. Additionally we plan to hold educational seminars for tour operators and travel agents in the first quarter of 2012.

Courtesy – The Economic Times – Dt- 28-12-2011

Cementing ties

Strong cultural ties coupled with 60 years of strong bilateral relations between India and Japan will be the key factor to the growth of the two economies in time to come. The much-awaited India visit of the Japanese premier will give a further impetus to the cultural and economic initiatives taken up by the two governments.

Over the last few years, India has witnessed an unprecedented economic growth. Japanese industry has been watching developments in India with a renewed interest. In fact, Japan's involvement in India's growth has increased significantly in the last half a decade. With the result, the bilateral relations between the two nations have scaled new heights. However, considering the potential and the pace of bilateral expansion, there is lot of room for improvement. Currently, speaking nation-wise, Japan ranks 11th in terms of the volumes of export from India and 15th in terms of import volumes. These are the figures of FY 2010 and speak for themselves. However, considering the initiatives taken up by the two governments to improve bilateral ties, the future seems bright. The important CEPA (Comprehensive Economic Partnership Agreement) has finally entered into force on August 1, 2011. There is strong hope that this agreement will strengthen Japan-India bilateral economic partnership and further vitalize the economies of the two countries.

Coming back to the core topic, Japanese industry is keenly watching economic developments taking place in India and is strategically working towards a longterm partnership with India. This initiative will go a long way in charting the future course of economic activities of Japan in the whole world. Interest in India is evident from the fact that Indian business briefings, recently held in Japan's major cities, were packed with industrialists and traders from Japan. Interest in India was specially focused around SMEs which had very high quality with special technology in particular industrial fields. India and Japan share a long history of mutual trust and dependence. Besides, 60 years of bilateral relations provide the much- needed impetus to break new grounds on economic front. According to the Research Paper which was published by Japanese Embassy in New Delhi, a total of 1,422 establishments of Japanese businesses are operating in India. As of October 1, 2011, 811 Japanese companies were registered in India. One of the most important plans for Indian economic development with Japan's assistance is the Delhi- Mumbai Industrial Corridor (DMIC) Plan. The plan envisages construction of 1,500 km line between Delhi and Mumbai. The first phase (950km between Rewari-Vadodara) construction costs 450 billion yen. The DMIC has planned that 24 'Investment Area' which are designated industrial zones that run across six Indian States. Regional Industrial Park District, the hub of industrial IT, infrastructure, agricultural processing and other industrial hubs, and the logistics base, ports, airports, run a project to develop physical and social infrastructure such as power plants. Plans are already underway. A total of 26 project are located in five States of Rajasthan, Uttar Pradesh, Haryana and Maharashtra.

From the Japanese perspective, India is an important nation and a strategic partner in South Asia and westside of Indian Ocean. Nevertheless, Japan needs to realize the importance of security issues with India as well. Since 1950s, Japan's security needs are allied with its alliance with the U.S.

However, it is clear understanding that the decline of the U.S. power and the rise of China's power is an area of concern. Japan and China have had territorial disputes in the past, some of which still continue. The Japanese side is confused about the rise of China and has been aware of the necessity of security cooperation with India. It is true that Japan hasn't yet arrived on the consensus that how the relationship with India must be developed keeping security issue in mind.

For Japan, India has the high standard ability to provide maritime security to Japan in the Indian Ocean. Japan can contribute to India for further economic development and cooperation of international activities. Japan can really increase mutual trust by taking some steps like promoting India to have a Permanent Seat in U.N. Security Council. As India's maritime power increases, Japanese support to India also enhances.

On December 19, 2011, Japan, India and the U.S. held their first trilateral meeting in Washington. Japanese foreign minister Koichiro Gemba addressing to the U.S. Secretary of State Hillary Clinton, said, "We affirm that Japan and the United States are deepening strategic relationship with India." At the same, a press release of the Indian embassy said at their first ever trilateral dialogue that "These discussions mark the beginning of a series of consultations among our three governments, who share common values and interests across the Asia-Pacific and the globe." This Washington trilateral made new course of an opportunity to begin the process of operationalising Indo-Pacific cooperation as a seamless construct in areas such as maritime security cooperation, counter-terrorism, counter-piracy, counter-proliferation, disaster relief and humanitarian assistance. Japanese Prime Minister Yoshihiko Noda’s visit to India will further strengthen Japan-India relations. Possible areas for cooperation between Japan and India are many. And, those are the areas that will be elaborately worked upon during the summit.

As the clock turns 12 at night on December 31 , we will begin the 60th anniversary of diplomatic relations between India and Japan. The visit of Japanese premier will give the celebrations a much needed boost. Similarly, the visit by Indian Prime Minister to Japan will also be important event next year. We cannot deny the fact that the strengthening of bilateral relations will become a major key to economic recovery and stability in Asia.

With China factor in mind, it becomes all the more important that the two economies work together with better synergy and responsibility to maintain a fine regional balance.

The author is Prof. Fukunaga Masaaki (Ph.D. of Sociology, Banaras Hindu University, Varanasi India), Assistant Director, Center for South Asian Studies, Gifu Women's University,
Gifu Japan
PM Noda at India Japan Global Partnership Summit 2011, held in Tokyo
Courtesy – The Economic Times – Dt- 28-12-2011

Indian Ambassador’s message

“Robust relationship between India and Japan will bring peace, stability and prosperity to Asia and the rest of the world”

Iam glad to learn that The Economic Times is bringing out an Economic Report on Japan on the occasion of the visit of Japanese Prime Minister Yoshihiko Noda to India. I am sure that this commendable initiative will contribute to promoting Japan- India relations. Japan and India relationship is based on shared cultural heritage, commitment to democratic ideals, economic complementarities and strategic convergences. Over the years, India-Japan relations have evolved and grown based on these shared values and the vast potential of multi-faceted cooperation between India and Japan.

Our relations are at historical high with the declaration of a Global and Strategic Partnership in 2006. Since then both countries have nurtured the relationship through annual summit meetings between our Prime Ministers. The Comprehensive Economic Partnership Agreement, which came into effect from August 2011, will provide further impetus to our economic and commercial ties. The flagship projects of the Dedicated Freight Corridor and the Delhi-Mumbai Industrial Corridor are making good progress and have the potential to transform India's infrastructure. Japan continues to be our generous partner in development co-operation, having assisted in the Delhi Metro and many other infrastructure projects. I believe that that this robust relationship will bring peace, stability and prosperity to Asia and the rest of the world. During 2012, we will be celebrating the 60th anniversary of establishment of India-Japan diplomatic relations. Both sides are planning a number of events in India and Japan. These celebrations will serve a useful purpose in increasing awareness about different aspects of our societies and range of our relations.

I am confident that the visit of Japanese Prime Minister Yoshihiko Noda to India, on the eve of 60th anniversary of India-Japan diplomatic relations will further strengthen the bilateral relationship and deepen understanding between the two countries. I extend my warm greetings and best wishes to you all.

Mr. Alok Prasad, Ambassador of India to Japan
Courtesy – The Economic Times – Dt- 28-12-2011

CEPA: A Way Forward

The Comprehensive Economic Partnership Agreement (CEPA) came into force on August 1, 2011. Mr. Arun Goyal, Minister (Economic & Commercial), Embassy of India, Tokyo, interacts with Sandeep Rai on various aspects of the CEPA

Q. Which are the major sectors in both the countries which are going to benefit by the signing of CEPA?
I n d i a - Jap a n Comprehensive Economic Partnership Agreement (CEPA) is one of the most comprehensive of all such agreements concluded by India and covers not only trade in goods but important areas of Trade in services, movement of natural persons, investments, intellectual property rights, custom procedures and other trade related issues. The CEPA has become effective from August 1, 2011 and envisages abolition of tariffs over a period of 10 years on goods that account for over 94 percent of the two-way trade flow between India and Japan. The agreement is expected to give major boost to trade and investment ties between India and Japan. CEPA will also provide more stable, predictable and conducive investment environment in both the countries.

Q. As per the agreement, the two Asian economies will eliminate import duties on 94% of trade volume. Which are the items that form the remaining 6% which were kept elusive? What major reasons would you attribute to the exclusion of these items from the list?
Japan has excluded only 8.9% of tariff lines at 6 digit level comprising of around 2.9% of their import from India. These items mainly consist of agricultural items such as rice, wheat, barley, oil, milk and milk products, sugar, leather and leather products, etc. On the other hand, India has excluded 12.84% of tariff lines at 6 digit level comprising of about 9.9 % of its imports from Japan. These items mainly consist of vegetables, edible oil, betel nut, apples, coffee, spices, wheat, rice, edible oils, wines and spirits, tobacco, fish, milk and its products, honey, flowers and Industrial products such as plastics, polymers, sanitary ware, rubber, tyres, fans, air compressors, split airconditioners, freezers, water purifiers, colour TVs etc. Each side has kept some items which are domestically sensitive outside the purview of CEPA. However, MFN tariffs will continue to apply on them.

Q. The duty elimination process will be in phases and will take 10 years to complete. If we focus on two-year time frame, which are the sectors and trade items that will be on the priority list for duty waiver?
The Japanese side has put 87% of its tariff lines covering about 94% of Japan's imports under immediate reduction of tariff to zero. A large number of these items are of India's export interest?and include seafood; agricultural products such as mangoes, citrus fruits, spices; instant tea; most spirits such as rum, whiskies, vodka etc; textile products such as woven fabrics, yarns, synthetic yarn, readymade garments; petrochemical and chemicals products; cement; jewellery, etc. On the other hand, India's 17.41% tariff lines covering about 8% of India's imports will go to zero duty immediately. These items include majority of items in the textiles sector and other items such as SIM and memory cards,?indicator panels of LCDs and LEDs, electronic calculators, cash registers, automatic data processing machines, input-output units, electric inverters and battery chargers etc. In case of India, tariffs on 66.32% of tariff lines will be brought to zero in 10 years on to give sufficient time to industry to adjust to the trade liberalization. There is no specific category in CEPA envisaging elimination of tariffs in two years. However, there are certain items of export interest to Japan where tariffs will be eliminated by India in five years. These include items such as steel plates, Galvanized copper plates, wires of iron or non-alloy steel , steel alloys, MP-3 Players etc. On some auto parts there will not be complete elimination of tariff but gradual reduction over a period of time. Tariffs in India on Engines of cylinder capacity exceeding 250 cc will be brought down gradually to 5% by January 1, 2017 and tariff on Gear boxes and parts thereof will be brought down gradually to 6.25% by 1st January, 2019.

Q. Japan has formidable strength in defense research and the development of high-tech military equipment. Is there any provision of cooperation between India and Japan in this sector in CEPA?
Cooperation in defense research and development does not fall under the purview of CEPA. However, there is a separate chapter on 'cooperation' in CEPA with objective to promote cooperation for their mutual benefit in order to liberalize and facilitate trade & investment and strengthen wide- ranging relations between India & Japan. The fields of cooperation include environment; trade & investment promotion; infrastructure; information & communication technology; science & technology; energy; tourism, small & medium enterprises; health; entertainment and information; metallurgy; and other mutually agreed fields. However, provisions of chapter on 'cooperation 'are outside the purview of CEPA's?dispute settlement procedures.

Q. Health equipment is yet another area that Japan specializes in. How will the trade agreement impact the health sector in India?
Most of the health equipment falls under Chapter 90 of HS Code. Tariffs on all items have been brought to zero by Japan with effect from 1st August 2011. India will be removing tariffs on majority of items under Chapter 90 over a period of 10 years. Therefore, there should be a positive impact on trade in health equipment. The Article 54 of CEPA deals with cooperation on Generic Medicines. The Agreement provides that both the parties will provide "National Treatment" in relevant procedures to the applications by a person of a party for registration and approvals required for release of generic medicine. Such procedures shall be completed within a reasonable period of time from the date of application. Considering strengths of India's pharmaceutical sector particularly in generic medicines, this area is of special interest to India.

Courtesy – The Economic Times – Dt- 28-12-2011