The 2nd Japan-India Business
Leaders Forum Joint Report
around the world are facing increasingly bigger global
challenges, such as the rising prices of resources,
energy, and food, as well as climate change, and,
particularly in recent years, financial uncertainty,
and the slowdown of the global economy.
Business leaders of
the two countries share the perception regarding the
severe situation of the current global economy, and
agreed on the need to pursue mutually beneficial and
sustainable economic growth through a broadening and
deepening of the bilateral economic partnership. This
will go beyond the mutual interests for both countries
and should contribute to stabilising the global economy.
Further, the role to
be played by the Japan-India Business Leaders Forum
is immense in developing the Japan-India economic
relationship, which is among the richest in potential
in Asia as well as in the world.
Against this background,
Japanese and Indian business leaders, following the
first forum in August 2007, again held frank exchanges
of views towards consolidating the economic relationship
between Japan and India, and submit the following
joint report to the heads of both governments.
1. Prospects for the Japan-India
(1) Future Opportunities
and Challenges Based on the Conclusion of a Japan-India
The economic relationship
between Japan and India has grown much stronger in
recent years. The bilateral trade volume in 2007 increased
by approximately 20% over the previous year, and there
was a six-fold increase in Japanese direct investment
in India from 2005 to 2007. In this context, an Economic
Partnership Agreement (EPA) is essential as an institutional
infrastructure to further accelerate and consolidate
these business activities.
The Japanese and Indian
business leaders welcome the steady progress being
made towards concluding a Japan-India EPA, and expect
the two governments to continuously make concerted
efforts to realise a mutually beneficial and high-quality
EPA in order to enhance its utilisation.
The Japanese and Indian
business leaders expect this comprehensive framework
of economic partnership to lead to the further consolidation
of the bilateral economic relationship. In addition,
they affirmed the importance of continuous improvement
in the investment and business climate in India even
after the entry into force of the JIEPA to strengthen
the competitiveness of India as an investment destination.
This includes the simplification of the land condemnation
system as well as the taxation system, the relaxation
and abolition of FDI restrictions for retail trading,
and the simplification of working visa procedures.
From the viewpoint of
expanding personnel exchange between the two countries,
the Japanese and Indian business leaders welcome such
recent tangible achievements as the doubling of air
flights and collaboration in setting up a new Indian
Institute of Technology (IIT). On the other hand,
they share the perception that the movement of people
will be further accelerated by overcoming the challenges
in doing business in India, such as securing a sufficient
number of hotel rooms at moderate prices.
(2) Japanese Cooperation
Towards the Infrastructure Development in India
Recognising the Delhi-Mumbai
Industrial Corridor (DMIC) Project as indispensable
to the further development of the Indian economy and
industry, the Japanese and Indian business leaders
welcome the establishment of its "Project Development
Fund" and the launch of "Early-Bird Projects".
They also welcome the
establishment of the CII-JETRO portal, a web-based
business-matching site to facilitate business interaction
between Indian and Japanese enterprises as well as
to provide information associated with the DMIC project.
The Japanese side affirmed
the importance of increased assistance to infrastructure
projects through effective public-private partnerships
between ODA and private investment, which will also
be beneficial to the Multi-Modal Dedicated Freight
Corridor Project. Since India requires huge and rapid
development of infrastructure, such as an increase
in the electric power supply, it is imperative to
build an environment where the private sector can
easily participate in effectively promoting PPPs.
2. Role of the Japanese
and Indian Business Communities in Addressing the Global
(1) How to Address Climate
Change/Energy Saving Issues
In urgently addressing
climate change issues that concern all humankind,
it is imperative that all the major economies cooperate
in a meaningful way, based on the principle of equity
and in accordance with their common but differentiated
responsibilities and capabilities while balancing
the goals of economic development and environmental
From this standpoint,
the post-Kyoto international framework should be effective.
The Japanese and Indian business leaders welcome the
recent progress in developing the "Memorandum
of Understanding between CII, Nippon Keidanren and
the JCCI on Climate Change" and agreed to conduct
policy dialogue on climate change.
and technology transfer are essential to mitigate
climate change and pursue economic development and
environmental conservation in a balanced manner. The
Japanese and Indian business leaders hope for a steady
progress in the Japan-India Energy Dialogue and welcome
the Japanese government's proposal to promote technology
development through international partnership.
(2) How to Address Food
The Japanese and Indian
business leaders are concerned about the impact of
the rising cost of resources and food on the global
economy, and agreed to discuss how to assist developing
countries, including India, in increasing food production
utilising Japanese technology.
The Japan-India Business
Leaders Forum shares the perception that further efforts
should be made to liberalise trade and investment
and to build a global legal and institutional framework
for that purpose, thereby strengthening the fundamentals
of the global economy.
In addition, the Japanese
and Indian business leaders agreed to contribute to
sustainable economic development of Asia and the world
by taking a joint initiative towards building the
CEPEA (ASEAN+6) that embraces the AJCEP and the ASEAN-India
Chairman & Managing Director,
Reliance Industries Limited.
Co-Chair, India-Japan Business Leaders Forum
Chairman, Nippon Keidanren
Chairman & CEO, Canon Inc.
Co-Chair, Japan-India Business Leaders Forum
Tokyo, Japan, 22 October