India is stepping up efforts to rebalance its trade relationship with Japan by boosting exports and diversifying economic engagement, officials said, as New Delhi looks to make the two-way trade more equitable and sustainable.
At the 7th Joint Committee Meeting under the India-Japan Comprehensive Economic Partnership Agreement (CEPA) held in Tokyo on March 2, senior commerce officials from both nations discussed enhancing trade and investment ties and promoting higher Indian exports to Japan. The talks focused on improving implementation of the CEPA and addressing persistent trade imbalances.
India currently runs a significant trade deficit with Japan, with imports outpacing exports by a wide margin in recent years, a dynamic New Delhi is keen to correct to support economic sustainability and closer bilateral relations.
Commerce Secretary Rajesh Agrawal emphasized that India possesses strong export potential in key sectors such as textiles, pharmaceuticals, agriculture and services, and called for greater market access and diversification of Indian goods in Japan. He underlined that a more balanced trade relationship would help cement long-term economic cooperation between the two countries.
The CEPA joint committee also highlighted areas for future collaboration, including investment promotion, improved business environment, and expanded mobility of professionals and skilled persons, all aimed at driving growth in bilateral trade.
In addition to trade discussions, India and Japan are also exploring strategic cooperation beyond merchandise commerce, including talks on critical minerals and rare earth resources — sectors that could deepen economic engagement and support industrial value chains for both nations.
The initiative reflects India’s broader strategy to diversify its export markets and strengthen economic ties across Asia, aligning with ongoing efforts to bolster competitiveness and secure high-value trade relationships.