The Comprehensive Economic Partnership Agreement (CEPA) between India and Japan would help increase Japan's IT business with India, industry body NASSCOM said in Chennai on Tuesday.

NASSCOM President Som Mittal said Japan despite being the world's third largest economy,contributes only two per cent of India's business in Information Technology and other sectors.

Japanese ambassador to India Akitaka Saiki had said in Kolkota on June 3 that the Agreement would come into effect from August this year if all went well and provide for greater trade and investment flows between the two nations.

Speaking to reporters here, Mittal said CEPA would allow free flow of people in both sides. "I think that opens up the way. Our own internal target should be from two per cent to five-six per cent in the next six years", he said.

Stating that Japan's business was more of "engineering" and "IT",he said India was facing issues of language and culture (while operating in that country). "However, this is the time for us to make a breakthrough there", he said.

He said Japan, struck by a massive tsunami early this year, would quickly come out of it. "They (Japanese) have a huge resilience. They will come out of it fast".

Mittal said Japan has negative population growth and so was doing a little outsourcing and offshoring to China. "Their (Japan's) needs are more. We have a unique opportunity in Japan. We can help them bring best practices", he said.

Mittal was here to inaugurate "NASSCOM Emergeout Conclave" organised on the theme "India should be a launch pad for product companies in future".