PM Modi applauds Japan’s commitment to ‘Make in India, Make for the World’
“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 Expanding Footprint in India
The Indo-Japanese economic partnership is built on a foundation of trust, innovation, and mutual respect. Japan’s commercial presence in India dates back to 1972, when Panasonic set up its first manufacturing unit. The 1980s saw further momentum with Suzuki and Denso entering the Indian market, marking the beginning of a robust industrial collaboration that has only strengthened over the years.
Today, Japan sees India not only as a strategic partner but also as an emerging global manufacturing hub. India’s vast consumer market, skilled workforce, and infrastructure development have made it an attractive destination for Japanese investment. The signing of the Comprehensive Economic Partnership Agreement (CEPA) in 2011 further accelerated trade and investment flows between the two countries, laying the groundwork for increased economic cooperation.
During Japanese Prime Minister Fumio Kishida’s visit to India in March 2022, both nations set an ambitious goal of mobilizing JPY 5 trillion (approximately USD 38 billion) in public and private investment over five years. This commitment is now translating into actionable projects that will drive industrial growth, strengthen trade partnerships, and enhance job creation in India.
Mutual Growth with Bilateral Trade
Japan remains one of India’s most important economic partners, with bilateral trade reaching an impressive USD 22.85 billion in FY 2023-24. Japanese exports to India stood at USD 17.69 billion, while Indian exports to Japan were valued at USD 5.15 billion.
Despite these figures, there remains significant untapped potential. India currently ranks 18th in Japan’s total trade, contributing just 1.4%, while Japan ranks 17th in India’s trade with a 2.1% share. These numbers reflect an enormous opportunity for deeper economic engagement, particularly in high-value manufacturing, infrastructure development, digital technology, and renewable energy.
Both nations recognize the need to strengthen their trade corridors, enhance cross-border investments, and facilitate ease of doing business to unlock the full potential of their economic partnership.
Japan-India Business Cooperation: A Multi-Sectoral Push
Adding further momentum to this collaboration, PM Modi also met with a 17-member delegation from the Japan-India Business Cooperation Committee (JIBCC), led by Chairman Tatsuo Yasunaga. The delegation comprised senior executives from top Japanese corporations spanning key industries, including manufacturing, banking, aviation, pharmaceuticals, engineering, and logistics.
Key discussion points included:
High-quality, cost-effective manufacturing in India to cater to domestic and global markets.
Strengthening trade networks, with a special focus on Africa as an emerging economic frontier.
Enhancing human resource development through skill-building initiatives.
Technology transfer and innovation partnerships to boost India’s industrial landscape.
The delegation also briefed PM Modi about the upcoming 48th Joint Meeting of the Japan-India Business Cooperation Committee, scheduled for March 6, 2025, in New Delhi, which aims to deepen business ties and explore new avenues for investment.
PM Modi welcomed Japan’s expanding role in India’s economic growth, reiterating the Indian government’s commitment to creating a business-friendly environment. He emphasized the importance of skill development as a key pillar of the Indo-Japanese partnership, ensuring that India’s workforce remains equipped to meet the demands of a rapidly evolving global economy.
Collaborative Economic Expansion
As India continues its trajectory towards becoming a global manufacturing powerhouse, Japan’s investment, expertise, and technology will play a crucial role in shaping this transformation.
Key focus areas for future collaboration include:
Automobile and EV industry: Strengthening India’s electric mobility sector with Japanese technology.
Smart infrastructure and urban planning: Developing world-class urban infrastructure powered by cutting-edge technology.
Renewable energy and sustainability: Expanding cooperation in green energy solutions to meet global climate goals.
Digital innovation and AI: Leveraging Japan’s advancements in artificial intelligence and automation to boost India’s tech sector.
With increasing cooperation between governments and business communities, India and Japan are poised to enter a new era of economic collaboration. The message is clear: India and Japan are not just economic allies but strategic partners shaping the future of global trade and industry.
link
