← All questionsGS2 · 2013 · International Relations ·India-Japan Economic Ties: Constraints
MAINS 2013
GS2
10 marks

Economic ties between India and Japan, while growing in recent years, are still far below their potential. Elucidate the policy constraints inhibiting this growth.

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7 min
200 words
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What the examiner wants

Elucidate policy constraints that keep India-Japan trade and investment below potential.

ElucidateExplain the statement clearly and bring out its meaning with examples.

Demand-wise check

  1. 1Indian constraints: high tariffs and non-tariff barriers, land acquisition, rigid labour laws, infrastructure gaps≈35 words
  2. 2Tax and contract uncertainty: retrospective tax (2012), slow dispute resolution≈35 words
  3. 3Japanese constraints: strict quality and SPS standards for Indian agri and pharma, risk aversion, language and business culture≈35 words
  4. 4Trade imbalance and low CEPA utilisation; way forward: Japan Plus desk, industrial townships, DMIC≈35 words

Open in about 30 words and close in about 30.

Answer plan

Growing tiesIndia-side barriersJapan-side barriersUnder-used CEPAReforms

Where marks usually go

  • Describing strategic ties instead of economic constraints
  • No mention of CEPA or its under-use

Draw this

  • Table: constraint, side (India/Japan), example, fix

Value addition

  • AgreementIndia-Japan CEPA came into force in August 2011.Ministry of Commerce
  • TargetJapan set a 5 trillion yen public-private investment target for India over five years (2022).India-Japan Summit, 2022