The Hindu Business Line : FICCI lists measures to enhance trade with Japan

Difficulty in accessing the highly competitive Japanese market and perception among Japanese buyers about Indian products being of low quality are some of the major impediments to enhancing India-Japan trade, according to industry chamber FICCI.

These findings are highlighted in a study called `Enhancing India's trade and investment linkages with Japan,' conducted by the chamber on the eve of Prime Minister Dr Manmohan Singh's visit.

The study that despite Japan being the second largest economy of the world and India the second fastest growing economy, the trade engagement between the two countries has not strengthened over the years.

Japan has slid from being India's third largest trading partner to its sixth largest export destination and seventh largest import source, according to statistics from 1993-94 to 2003-04.

To enhance trade, it is important to engage these Japanese trading houses, according to the chamber.

The trading houses act as catalysts for sourcing products from overseas markets.

Therefore, in order to step up exports, it is imperative to do a bit of handholding for these trading houses in India and should be brought into direct contact with manufacturers and exporters.

Imports of cosmetics and beauty products into Japan require obtaining a licence from the Ministry of Health and Welfare.

The Ministry uses a pre-defined list of items that can be used as ingredients in the production of imported products.

Given the large market for cosmetics there, and India's strength in this area, efforts should be made to make market access for Indian companies easier, the chamber said.

Indian textile and leather products treated with certain chemicals such as azo dyes face strong resistance in the Japanese market.

Manufacturers here may be helped to shift over to more acceptable chemicals, the chamber said.

Exports of meat and meat products face difficulties on account of stipulations that ban use of natural and synthetic hormones in livestock production.

In case of processed food items, the presence of additives used for preservation or enhancing the product quality and life and otherwise considered safe are objected to by the authorities. Hence, exports of food products are facing stiff competition there.

It is, therefore, imperative that Indian exporters, Japanese importers and Japanese regulators meet and discuss how these issues can be addressed, the chamber said.

Specific companies can also be tapped for promoting exports. For instance, large Indian outfits of Japanese automobile companies may be engaged for pushing up exports of auto components, it said.

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