Today, Japan and India signed a new economic trade agreement, aims to cut the tariffs between both countries on 94 percent of trade over 10 years as each country expands its investment in the Asian region.

This agreement will help more companies such as Toshiba Corp., Hitachi Ltd. and Bridgestone Corp. greater access to the second- fastest growing major economy, due the Japanese economy seeks to keep pace with China's rising presence in Asia.

Moreover, Toshiba Corp. (which is the world's second-biggest maker of flash memory) announced this week that the company in talks with the Indian company (which is the largest power producer in India) to build a new project in India for capturing and storing carbon emissions.

On the other hand, the trade between Japan and India will be $10.4 billion during the year ending March 31, down 5% from last year. Further, Japan became the India's 11th biggest trading partner during the second quarter of 2010.