India moving fast to complete FTA talks with Japan, S Korea
The Hindu, India
India moving fast to complete FTA talks with Japan, S Korea
21 September 2008
New Delhi (PTI): After clinching a deal for an FTA with ASEAN, India will move fast to complete negotiations in the next few months for pacts with Japan and South Korea that will open trade in goods as also services for Indian firms.
"We are hopeful. We will try to conclude Free Trade Agreements with Japan and Korea this year," Commerce Secretary G.K. Pillai told PTI.
Pillai hoped negotiations with Japan and South Korea could be completed fast as there were no apprehensions for India over Japan seeking large access in agriculture sector.
"With Japan, the advantage is - our agricultural sensitivities are not there. We are not worried that Japan would export rice or dairy products to India," Pillai said.
Asked whether there would be any impact on the Indian automobile sector in which Japanese firms themselves have pumped in investment, Pillai said there were no concerns on that count. India enjoys a big cost advantage in manufacturing automobiles, he said.
Moreover, India is hoping that more Japanese investment will flow into the country through the trade agreement. "The whole purpose of the FTA is that it would attract more Japanese investments into India," he said.
The lucrative pharmaceutical market in Japan is also on India’s radar. Japan imports pharmaceuticals of about USD 50 billion, of which India’s share is only USD 200 million.
"We can supply pharma products to them. It will be an advantage if we get that market," he said.
With Daiichi Sankyo buying controlling stake in Ranbaxy, which gets bulk of its total revenue from exports, Japan should be interested in relaxing pharmaceutical imports from India, officials feel.
