Mumbai: The Comprehensive Economic Partnership Agreement currently being negotiated between India and Japan would help the two countries dominate Asia's economic scene with 60 per cent of the GDP, Japanese ambassador to India Yasuki Enoki said.

"The first round of negotiation for the Comprehensive Economic Partnership Agreement (CEPA) between India and Japan has already taken place and it will take at least two years for the agreement to take a final shape," Enoki told the 34th joint India-Japan joint business cooperation meeting.

India offers Japanese investors a level-playing field, a sound financial system, low custom duties and young manpower, said Kapil Sibal, union minister for science and technology. The strategy of the companies should be to use cost effective technologies and penetrate the market, he added.

"India is a low cost economy with very high quality human resource base and offers much more opportunities than China," Sibal said, adding, "Let there be joint ventures to bring together Japanese technology and potential Indian market as it would enable access to the world market."

Infrastructure, chemicals, telecom and transportation were some sectors that Japanese firms can invest in and look at potential tie-ups with their Indian counterparts, he added.

Speaking at the meeting, former Japanese prime minister Y Mori also called for greater exchanges among Indian and Japanese universities.