On September 9, 2010, METI announced Japan and India reached mutual agreement to conclude EPA, which negotiation has continued since January 2007. The implementation of this EPA will be 12th EPA Japan have concluded, and first EPA with BRICs. It is expected to be implemented in sometime 2011.
Within 10 years after the implementation, customs duty for the trade amount of 94% will be abolished. (Export from Japan to India is 90%, and export from India to Japan is 97% respectively.) Steel products or vehicle parts will be duty free in importing into India, this is promising news for Japanese manufacturers, who struggles in shrinking domestics market.
While India request to Japan to simplify the approval procedures for the sale of generic drugs and to expand job opportunities for Indians hoping to work in Japan, this request is not finalized yet, just agreed to keep discussing. Also, Japan keep a number of agricultural items, such as rice, wheat, meat and sugar etc., excluding from duty reduction.
(Reference: METI announcement http://www.meti.go.jp/press/20100909006/20100909006.html )