India Seeks Japan Trade Pact Review to Hit $50 Billion Target

India is seeking a comprehensive review of its 15-year-old Comprehensive Economic Partnership Agreement (CEPA) with Japan to address a widening trade deficit and remove market-access barriers. During a visit to Japan, Piyush Goyal, India's Commerce and Industry Minister, met with Japan's Minister of Economy, Trade and Industry Ryosei Akazawa to discuss modernizing the 2011 pact following a recent agreement between the two nations' prime ministers.

India aims to reduce regulatory hurdles, stringent certification requirements, and language barriers that hinder exporters, particularly in the pharmaceutical sector. While bilateral trade reached approximately $27.5 billion in fiscal 2025-26, India faces a significant deficit of roughly $15.4 billion. To bridge this gap, the Associated Chambers of Commerce and Industry of India (ASSOCHAM) has outlined a strategy to reach a $50-billion trade target by 2030 by shifting toward higher-value, technology-intensive exports in semiconductors, artificial intelligence, and critical minerals.

Both nations are exploring expanded cooperation in clean energy and digital technologies. Japan is currently the fifth-largest investor in India and has committed JPY 10 trillion in private investment over the next decade. To further enhance technology transfer, ASSOCHAM has suggested that Japan establish more research and development and global capability centers within India.