India's trade with Japan is below potential, needs strengthening: FICCI chief Subhrakant Panda

New Delhi [India], July 7 : FICCI's president Subhrakant Panda on Friday said that the trade volumes between India and Japan are currently lower than their actual potential and called for greater collaboration between the two partner countries in diverse sectors.

"The bilateral trade (between the two countries) last year was about 21.5 billion dollars, and I think there is much more potential there," said the FICCI president in interaction with ANI.

He asserted that there is a lot that is happening between the two countries but believes the potential is even higher.

"Japan is synonymous with technology and quality while India is seen as the next engine of global growth with a large, unified domestic market."

Japan is the 5th largest investor in India and has been a strong contributor to the economic growth of various Indian States. It is one of the most important development partners for India and has also been a great friend to India.

Panda said that Japan is the fifth largest FDI investor in India with equity flows of close to USD 40 billion.

Panda noted that the India-Japan relationship is one of the most meaningful relationships. "It's a strategic partnership, and one which has been elevated to that level with high-level visits with annual summits and a warm personal friendship between the leaders on both sides, which has taken it to new heights," said the FICCI chief.

He said that the two countries can work together in the fields of critical minerals and tourism.

"Collaboration on various pillars such as trade, supply chains, and clean economy holds a lot of potential. In a world fraught with instability due to geopolitical developments, bilateral ties between India and Japan stand out for their genuine warmth and solidity. The partnership between the two countries is not just mutually beneficial but will help the world at large," he added.

Yoshihide Suga, Former Prime Minister of Japan yesterday addressed the 'FICCI Forum of Parliamentarians Interaction with Former PM of Japan and Delegation of 'Ganesha' Group of MPs from Japan'.

Yesterday, he also met with Prime Minister Narendra Modi.

The former Japanese PM is on a visit to India with a delegation of over 100 members comprising government officials, Keidanren (Japan Business Federation), and members of Parliaments.

Talking about the robust GST collection number and Indian stock markets at new highs, Panda said that tax collections indicate the economy is on a very firm footing.

"What is publicly known is that of course, India is the world's fifth largest economy and growing at a rapid pace and will become the third largest before the end of this decade. But we really present a unique bouquet with a young population with demographic dividend, fast-growing economy and digital revolution, which is empowering and connecting people."

"Due to a lot of focus on plugging leakages as well as other measures, there is clearly an upward rise in GST collections which indicates the strength of the economy and what was once considered to be the base of about Rs 1.4 lakh crore per month, it is now on a regular basis topping Rs 1.5 lakh crore (monthly) with of course the peak being Rs 1.87 lakh crores."

Panda stated that robust GST collection represents the strength and resilience of the economy."