India and Japan are working to expand the scope of their Comprehensive Economic Partnership Agreement (CEPA), Minister Piyush Goyal told reporters, according to The Economic Times. The pact was implemented in August 2011, and the two countries' prime ministers announced at summit-level talks in New Delhi last month that, 15 years after the signing, the agreement should be discussed and made more contemporary.
CEPA review on the table
The CEPA review is a long-pending demand of India to balance bilateral trade, the report said. Goyal told reporters:
"I have also discussed it with my counterpart minister, and we are hoping to work towards further expanding the scope and providing new opportunities for this relationship to grow."
Two-way commerce climbs 9.18 per cent to USD 27.47 billion
Trade between India and Japan grew 9.18 per cent to USD 27.47 billion in 2025-26, from USD 25.16 billion in 2024-25, according to The Economic Times. India's exports in 2025-26 stood at USD 6.03 billion, while imports were USD 21.43 billion.
| Fiscal year | Two-way commerce | Exports | Imports | Trade deficit |
|---|---|---|---|---|
| 2025-26 | USD 27.47 bn | USD 6.03 bn | USD 21.43 bn | USD 15.4 bn |
| 2024-25 | USD 25.16 bn | — | — | USD 12.66 bn |
| 2023-24 | — | — | — | USD 12.53 bn |
| 2022-23 | — | — | — | USD 11 bn |
The trade deficit widened to USD 15.4 billion in the last fiscal year from USD 12.66 billion in 2024-25, the report said. It was USD 12.53 billion in 2023-24 and USD 11 billion in 2022-23.
Export support: REACH registrations and pharma
Goyal said India also has to see what kinds of goods it imports, citing equipment that helps promote economic activities as an example of needed imports. He said he has asked different industries to submit the challenges they face in exporting goods to Japan.
"Many times these challenges are more about process and language and time, and our mission stands ready to support all sectors," he said.
The commerce ministry is supporting industry and exporters in registrations of their products to meet regulatory requirements. Under the export promotion mission scheme, the ministry will facilitate and support micro and small businesses in undertaking expensive registrations such as the European Union's REACH regulations for chemicals.
"For the pharma industry, I have also requested to start registrations all across the world...they should all look at registering all across the world, including Japan," Goyal said.
Japan's 10 trillion yen investment plan
Japan has announced an investment of 10 trillion yen (about Rs 7 lakh crore) in India in one decade. Goyal also informed that India has received about Rs one lakh crore in investments from that target, according to The Economic Times.
The CEPA expansion effort is therefore taking shape alongside a bilateral deficit that has risen in each of the last four fiscal years, from USD 11 billion in 2022-23 to USD 15.4 billion in 2025-26, and a pledged investment pipeline from Japan that is already showing inflows.
Sources:
