Japan has long been a pivotal ally in India’s economic landscape, with Foreign Direct Investment (FDI) from the island nation surpassing $43 billion between 2000 and 2024. Union Commerce and Industry Minister Piyush Goyal, speaking at the India-Japan Economy and Investment Forum, emphasized Japan’s crucial role in India’s economic evolution, making it the fifth-largest source of foreign investment.

Goyal highlighted that the Indo-Japanese partnership is more than just economic—it is deeply rooted in shared democratic values, cultural affinities, and strategic cooperation. “The India-Japan partnership is rooted in brotherhood, democracy, culture, and economic cooperation, reflecting a unique fusion of Sushi and Spices, distinct yet complementary,” he remarked.

Reinforcing the cultural bonds between the two nations, Goyal noted that Japan’s revered ‘Seven Lucky Gods’ trace their origins to Indian traditions, signifying centuries-old ties that go beyond contemporary geopolitics.

Since the signing of the Comprehensive Economic Partnership Agreement (CEPA) in 2011, bilateral trade and investment have flourished. Today, India hosts over 1,400 Japanese companies, with 11 industrial townships spread across eight states dedicated to Japanese enterprises. These townships not only foster business growth but also create employment opportunities and enhance India’s industrial prowess.

Japan’s participation in India’s infrastructural transformation is significant. Major projects like the Mumbai-Ahmedabad High-Speed Rail and metro systems in Delhi, Ahmedabad, Bengaluru, and Chennai exemplify the synergy between the two nations. “Today, India and Japan are collaborating to build globally competitive brands,” Goyal asserted, citing Maruti’s export of vehicles to Japan as a testament to India’s growing manufacturing capabilities.

India aims to increase the share of manufacturing in its GDP to 25%, and Japan is positioned as a key enabler in achieving this vision. Goyal underscored the importance of infrastructure development, public-private partnerships in innovation, and a robust R&D ecosystem, which are further reinforced by recent budgetary announcements. “Infrastructure development, public-private partnerships in innovation, and a strengthened R&D ecosystem, supported by recent budget announcements, reflect the government’s strategic focus on economic growth,” he said.