India’s Commerce Ministry is planning to introduce amendments to the rules of origin (ROO) and product-specific rules (PSR) within the framework of the India-Japan Comprehensive Economic Partnership Agreement (CEPA). As per reports, the Ministry's objective is to modify the ROO and PSRs in a way that favors Indian industries, concurrently addressing non-tariff measures. Despite signing the agreement in 2011 with the aim of providing duty-free or low-duty market access for most goods, the CEPA has disproportionately benefited Japan, witnessing nearly doubled exports to India while India's exports have remained stagnant.
To address the challenges faced by India's Micro, Small, and Medium Enterprises (MSMEs) in meeting Japan's stringent non-tariff measures, particularly concerning technical standards, the CEPA is undergoing a thorough review. Japan too will concentrate on reassessing rules of origin. The Indian government intends to work closely with domestic industries to implement these changes to ROOs and PSRs, ultimately aiming to enhance market access in Japan.