India, Japan Set to Revamp 15-Year-Old Trade Pact: Piyush Goyal

India and Japan are initiating discussions to modernize their Comprehensive Economic Partnership Agreement (CEPA), which was established 15 years ago, in order to enhance bilateral trade and economic ties, according to Union Commerce and Industry Minister Piyush Goyal.

During a media briefing in Nagoya on Wednesday, Goyal confirmed that the review of the CEPA was addressed in his recent meeting with Japan’s Minister of Economy, Trade and Industry, Akazawa Ryosei, in Tokyo. He noted that the matter had previously been discussed by the Prime Ministers of both countries during the 16th India-Japan Annual Summit held in New Delhi in July.

“This issue was discussed between the two Prime Ministers at the 16th Summit held in Delhi,” Goyal stated. He referenced a joint statement from the summit, emphasizing the need to update the CEPA since it has been 15 years since its signing.

Goyal indicated that while discussions are ongoing, the terms of reference for the CEPA review have yet to be established. “We haven’t started working on the terms of reference of CEPA yet, but we are open to expanding the scope, scale and extent of engagement,” he added.

The CEPA, signed on February 16, 2011, and effective from August 1 of that year, encompasses trade in goods and services, investments, and various areas of economic cooperation. The joint statement following the July summit highlighted the necessity of enhancing and diversifying bilateral trade to reflect the changes over the past 15 years.

In addition to the CEPA review, Goyal’s discussions with Akazawa also revolved around increasing bilateral trade and investment. They explored opportunities in new and emerging sectors, including next-generation industries, technology, and manufacturing.

A notable development reported by Goyal was that Uniqlo, the Japanese apparel retailer, is interested in entering the Indian market. He mentioned that the company’s chairman expressed significant enthusiasm during their meeting, with a readiness to begin sourcing from India in the near future.

Goyal is presently on a four-day visit to Japan from August 24 to 27, leading India’s largest-ever business delegation of over 200 representatives from various sectors, including manufacturing, semiconductors, clean energy, automotive, and healthcare.

India and Japan maintain a Special Strategic and Global Partnership, with growing economic collaborations in areas such as semiconductors, artificial intelligence, supply-chain resilience, and advanced manufacturing. Bilateral trade between the two countries reached approximately USD 27.5 billion in the 2025-26 fiscal year, with Japan being India’s fifth-largest source of foreign direct investment. Both nations are also targeting 10 trillion yen in private investment from Japan into India, as set during the annual summit in 2025.

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