The Free Trade Agreement is an agreement for tariff free trade with countries. In this system the FTA partners can send their products easily to the partnering country and vice versa. FTA is good for high quality products with minimum price but is not good for the products with premium prices. In this system the richer partner of FTA influences the poorer country by pricing and this system is not conducive for the weaker partner. In case of Japan and India FTA is not helpful India since the economy is poorer.
Published in Chapter:
Japan-India Trade Relations: History, Catalysts, and Challenges
S. Jobayear Ahmed (Bangladesh Rural Advancement Committee (BRAC), Bangladesh)
Copyright: © 2022
|Pages: 33
DOI: 10.4018/978-1-7998-5774-7.ch013
Abstract
Japanese-Indian relations is supported by historic, political, and cultural affiliation, which usually led towards positive economic relations. Although the Japanese-Indian relationship is a few centuries old, surprisingly, the statistics of trade hardly exhibit any mentionable growth, except the recent upward trend in exports to Japan. In fact, India almost failed to capture the near home market even with the growth (1% market share). Therefore, the chapter is developed based on a qualitative study with the objectives of exploring the history, catalysts, and impediments of Japanese-Indian trade relations and recommends the future course of action. The study recommends completion of India's megaprojects, Japan's policy reform, taxation and supportive reform, arrangement of social life of the foreigners, zero corruption, forgery, and harassment, efficiency, effectiveness, linguistic skill and cultural understanding of human resources, and creating opportunities and building organizational capacities between the two.