Breakthrough in Japan-India trade talks, including pharma, look set to see signing of FTA this year

After three days of talks last week, officials from India and Japan have resolved several stumbling blocks to their proposed free trade agreement (FTA) - opening up sectors like pharmaceuticals and services ' and thus raising prospects for its signing during the current year.

Once the FTA, officially dubbed as the Comprehensive Economic Partnership Agreement (CEPA), is signed and put into operation, as many 9,000 products - ranging from steel and apparel to drugs and machinery - are expected to be traded either without duty or at substantially reduced tariffs, reports the Economic Times of India. "The next round of talks would be held at a senior level," a source told the newspaper.

The FTA would keep a number of items, sensitive to the agriculture and employment-oriented sectors, out of the purview of both countries. Each side will have its own negative list of items. However, India's list would be bigger, with 8%of the tradeable items included. It will be 3% for Japan, sources said.