Prime Minister Narendra Modi has reiterated India's strong economic partnership with Japan, commending the nation’s unwavering support for the ‘Make in India, Make for the World’ initiative. His remarks followed a high-level meeting on March 5, 2025, with a Japanese business delegation led by Tatsuo Yasunaga, emphasizing a shared commitment to economic growth, industrial cooperation, and technological advancement.
"Pleased to meet the Japanese business delegation led by Mr. Tatsuo Yasunaga today. Encouraged by their expansion plans in India and steadfast commitment to 'Make in India, Make for the World'. Looking forward to deepening economic collaboration with Japan, our Special Strategic and Global Partner," PM Modi posted on X.
Japan's Growing Influence in India
The Indo-Japanese economic partnership is rooted in trust, innovation, and mutual respect. Japan's commercial engagement with India began in 1972 when Panasonic established its first manufacturing unit. The 1980s saw a significant boost with the entry of Suzuki and Denso, marking the start of a strong industrial collaboration that has grown steadily over the years.
Today, Japan views India not just as a strategic ally but also as a rising global manufacturing hub. India's expansive consumer market, skilled workforce, and advancing infrastructure make it a prime destination for Japanese investment. The signing of the Comprehensive Economic Partnership Agreement (CEPA) in 2011 further accelerated trade and investment flows, paving the way for deeper economic ties.
During Japanese Prime Minister Fumio Kishida’s visit to India in March 2022, both nations set an ambitious target of mobilizing JPY 5 trillion (approximately USD 38 billion) in public and private investment over five years. This commitment is now materializing into concrete projects that are set to fuel industrial growth, strengthen trade relations, and boost job creation in India.
Fostering Growth Through Bilateral Trade
Japan continues to be one of India’s key economic partners, with bilateral trade reaching an impressive USD 22.85 billion in FY 2023-24. Japanese exports to India totaled USD 17.69 billion, while Indian exports to Japan amounted to USD 5.15 billion.
However, significant untapped potential remains. India holds the 18th position in Japan’s total trade, accounting for just 1.4%, while Japan ranks 17th in India’s trade with a 2.1% share. These figures highlight a vast opportunity for deeper economic collaboration, particularly in high-value manufacturing, infrastructure, digital technology, and renewable energy.
Recognizing this potential, both nations are focused on strengthening trade corridors, boosting cross-border investments, and improving the ease of doing business to maximize their economic partnership.
Japan-India Business Partnership: Driving Growth Across Sectors
Strengthening this collaboration further, PM Modi also engaged with a 17-member delegation from the Japan-India Business Cooperation Committee (JIBCC), headed by Chairman Tatsuo Yasunaga. The delegation included senior executives from leading Japanese corporations across vital sectors such as manufacturing, banking, aviation, pharmaceuticals, engineering, and logistics.
Key discussion highlights included:
Promoting high-quality and cost-effective manufacturing in India to serve both domestic and international markets.
Strengthening trade networks, with a particular emphasis on Africa as a rising economic hub.
Advancing human resource development through targeted skill-building programs.
Fostering technology transfer and innovation partnerships to accelerate India’s industrial growth.
Additionally, the delegation updated PM Modi on the upcoming 48th Joint Meeting of the Japan-India Business Cooperation Committee, set for March 6, 2025, in New Delhi. The meeting aims to strengthen business relations and explore fresh investment opportunities.
PM Modi welcomed Japan’s growing contribution to India’s economic progress and reaffirmed the government’s dedication to fostering a business-friendly environment. He underscored skill development as a crucial pillar of the Indo-Japanese partnership, ensuring that India’s workforce remains prepared for the demands of a rapidly changing global economy.
Joint Economic Growth
As India advances on its path to becoming a global manufacturing leader, Japan’s investment, expertise, and technology will be instrumental in driving this transformation.
Key areas for future collaboration include:
Automobile and EV sector: Enhancing India’s electric mobility landscape with cutting-edge Japanese technology.
Smart infrastructure and urban planning: Building world-class urban ecosystems powered by innovative solutions.
Renewable energy and sustainability: Strengthening partnerships in green energy to support global climate objectives.
Digital innovation and AI: Harnessing Japan’s leadership in artificial intelligence and automation to accelerate India’s tech growth.
With deepening collaboration between governments and business sectors, India and Japan are set to embark on a new era of economic partnership. The message is clear: beyond being economic allies, they are strategic partners shaping the future of global trade and industry.
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