The Bilateral trade between India and Japan is expected to rise from current 7 billion U.S. dollars to 12 billion by 2010, according to the Associated Chamber of Commerce and Industry of India Wednesday.

Indian Prime Minister Manmohan Singh will pay a four-day visit to Japan, beginning from Dec. 13 after his attending the summit of the Association of South-East Asian Nations (ASEAN) in the Philippines.

An official document submitted by the chamber Wedneday to the Indian Prime Minister's Office and the Indian Ministry of Commerce and Industry points out that the current two-way India-Japan trade of 7 billion U.S. dollars is not commensurate with the two countries' economic power and potential.

Japan ranks 10th among India's export destinations and India stands at 26th among Japan's export destinations.

The chamber is sending a 25-member high-profile business delegation to Japan next week to explore opportunities for enhancing trade and investment between Asia's two countries. It will focus on areas such as IT and communication; architectural, engineering and construction services; audio-visual and entertainment services; healthcare and financial services' and tourism and travel related services.

Since 1991, Japan's direct investment to India aggregated around 2 billion U.S. dollars, making it the third largest provider of direct investment to India.

As much of the Japanese investments are linked to machinery and transport equipment, the chamber will recommend that investment be diversified to cover sectors such as electricity and electronics, steel, infrastructure, pharmaceutical products, and development of urban infrastructure.