The comprehensive economic partnership agreement (CEPA) between India and Japan will significantly increase bilateral trade and investment, the Japanese ambassador to India has said.
"The economic partnership agreement comes into force on August 1. This will significantly increase trade and investment between the two countries," ambassador Akitaka Saiki told reporters on the sidelines of an event here.
According to the envoy, trade volumes between the countries was expected to be doubled as a result of the agreement. Investments in crucial infrastructure and government backed projects too are set to get a boost, he added.
Currently, exports from India to Japan are 2.2 percent of India's entire exports, while exports from Japan to India stood at 0.9 percent of Japan's total exports.
Saiki was speaking at a Confederation of Indian Industries (CII) event to promote new and innovative techniques in the manufacturing sector.
The envoy noted that manufacturing through small and medium enterprises (SME) sector was crucial for India's development.
"The growth of the SME sector will be key for the credible, viable and efficient growth of the Indian economy as in Japan, where over 90 percent companies supporting the Japanese economy are SMEs," he said.
Saiki's views were corroborated by CII director general Chandrajit Banerjee.
"SMEs' role is critical for the growth of Indian manufacturing in light of India becoming a manufacturing hub and to accommodate millions of new entrants in the workforce every year," Banerjee said.