According to Invest India, India has received a cumulative of $38.3 billion (FDI inflows) from 2000 to 2022, making Japan the 5th largest investor. The economic relations between India and Japan has always been harmonious. In 2011, India and Japan signed the Comprehensive Economic Partnership Agreement (CEPA), an international trade agreement. International trade agreements and FDI inflows have often been criticized for their tendency to create dependency on one country on another. Foreign aid and investment have been fruitful in India’s economic growth. However, on the other hand, African countries have been largely dependent on foreign aid and are stuck in a cycle of dependency. Japan is a top investor in India and has invested in diverse sectors. Moreover, in 2022, the Japanese Prime Minister announced a $42 billion investment in India over the course of five years. Dependency theorists have thrown light on affluent nations’ exploitation of the poor ones. This research paper seeks to understand the nature of CEPA and whether the agreement signed between India and Japan creates a dependency with India is a periphery nation and Japan, a highly developed country, is a core nation exploiting India.
Keywords: International Trade, Social Cost, Developmental Studies, CEPA
Suggested Citation: Suggested Citation
Srivastava, Anushree and Gawai, Varuni, Examining the India-Japan Comprehensive Economic Partnership Agreement: Assessing its Social Costs from a Dependency and Development Perspective (January 23, 2023). Available at SSRN: https://ssrn.com/abstract=4335429 or http://dx.doi.org/10.2139/ssrn.4335429
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