New Delhi: The catastrophic earthquake and tsunami that hit Japan last month would affect bilateral trade with India in the first quarter of the current fiscal.

"The real impact would be seen in April-June this fiscal on account of less demand owing to earthquake and tsunami in Japan," Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said.

However, he said the USD 12.5 billion trade target between the nations would be achieved due to healthy growth registered in the first six months of 2010-11.

"We have done reasonably well in the first half of 2010-11 (April-September 2010)... As far as bilateral target is concerned, we will be touching USD 12.5 billion in 2010-11," Sahai said.

In the first six months of 2010-11, the bilateral trade stood at USD 6.4 billion.

During 2009-10, the trade between the two countries stood at over USD 10 billion.

India's exports to Japan comprise garments, iron ore, chemicals, while imports include machinery, mechanical parts, auto components and chemicals.

The two nations had also signed the Comprehensive Economic Partnership Agreement (CEPA) in February, with a desire to give a quantum jump to trade in goods, services and
investment.

 

(Agencies)