JAPAN OFFERS ITS TECHNOLOGY TO INDIA
Japanese Prime Minister Yoshihiko Noda has said Japan-based companies could offer technology to Indian firms and collaborate on various projects to strengthen the bilateral relations between the two nations. “India is growing rapidly, while Japan has technology which it can contribute,” he has said at the IndiaJapan Business Summit jointly organised by CII and Japanese industry chamber Keidanren in Tokyo. There is a potential to further strengthen the bilateral relationship and the private sector in both the countries is working on building stronger ties in trade and investment. Bilateral trade between India and Japan was USD 13.82 billion in 2010-11. India’s exports to Japan mainly includes petroleum, gems and jewellery, transport equipment and machinery, while imports include iron and steel, electronic goods, chemicals and metals. The two countries have signed a Comprehensive Economic Partnership Agreement. Both the sides expect that it would boost bilateral trade to USD 25 billion by 2014. Speaking on the occasion, Kunihiko Shinoda, Director Ministry of Economy, Trade and Investment said the comprehensive free trade pact has helped to substantially expand the bilateral trade. “I hope India’s exports like agricultural products mainly primary products can increase to Japan. Agricultural products exports from India to Japan are negligible at the moment,” he said. Besides, Shinoda said that Japanese companies are interested in investing in India in sectors like infrastructure, power utilities, automobile and multi-brand retail sector. Pointing out delays in getting visa, India’s Urban Development Minister Kamal Nath has said, “We need to have easier movement of people and needs to have faster processing of visas.” Talking about Japan’s collaboration in Delhi-Mumbai Industrial Corridor (DMIC) which envisages the establishment of several industrial cities across seven states, Noda has said, “We have a great wish to cooperate in Dedicated Freight Corridor.” Japan is now looking at closer economic ties with the world’s secondmost populous nation to revitalise its economy after the March 2011 earthquake that triggered a massive tsunami causing widespread devastation. Noda has said in Japan’s economic reconstruction, ironore is an important raw-material. “We import iron-ore from India and also we are able to see renewal of it (contracts for exports from India).” Besides, Nath has said, India and Japan are expected to conclude the social security agreement next month. Under the pact, workers on short-term contracts of up to five to six years will not be required to make any social security contribution in the country of employment, provided they continue to make social security payments in the country of their origin. “It is still at the negotiating stage, there are some issues...The next negotiation round that is taking place in June in Tokyo will be the final round,” Urban Development Minister Kamal Nath has said. According to industry experts, expatriate workers often do not get any benefit from the social security contribution paid abroad on their return home on completion of term of contract because most countries do not allow transfer of social security benefits. As per Indian labour laws, all employees and employers falling under the purview of the Employees Provident Fund Act, 1952, are required to make mandatory contribution towards provident fund. A mandatory contribution fund is known by different names in different countries, such as social security in the US. Though professionals posted in foreign countries continue to make such payments in India, they are compelled to pay social security tax in the host countries too leading to double contribution.