PM's Japan visit may push bilateral trade to $50 bn by FY20, say analysts

New Delhi: Prime Minister Narendra Modi’s visit to Japan will induce Japanese companies to invest more in India, and bilateral trade is likely to swell to $50 billion by 2019-2020, PHD Chamber of Commerce today said.

The industry body has projected that the bilateral trade between India and Japan is poised to accelerate to $50 billion by 2019-2020, with Modi and Japanese Prime Minister Shinzo Abe working to further cement ties.

“Bilateral trade between India and Japan is poised to accelerate to levels of $50 billion by 2019-2020, with Modi-Abe dynamics enhancing so much as to take the trade to the projected levels with both leaders concluding their latest parleys for further cementing their ties,” the chamber said.

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Bilateral trade between India and Japan stood at $16.31 billion by the end of fiscal 2013-14, the chamber said, quoting official estimates.

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We feel that Modi’s concerted and protracted successful talks with his counterpart in Japan have acquired a special fillip and momentum to further push the two-way trade in India and Japan’s emerging trade and economic ties, it said.

“Currently, about 1,000 Japanese companies are operating in India in nearly 70 infrastructure projects, among which Delhi-Mumbai Industrial Corridor is one such project in which Japan has so far invested $4.5 billion,” PHD Chamber President Sharad Jaipuria said.

“We expect that in future Indo-Japan ties would further cement, motivating the latter companies’ number going up from 1,000 to over 1,500 in next five years,” he added.

PTI