May 24, 2022
Japan's bilateral trade with India totaled US$ 11.87 billion
Japan exported US$ 3.94 billion to India during this period, and its imports reached US$ 7.93 billion
Japanese VC Softbank invested about US$ 14 billion over the past decade in Indian Startups
The Prime Minister met with the CEO of Uniqlo to discuss investment potential for textile production in India
India and Japan have collaborations on a number of developmental projects, including the Mumbai-Ahmedabad bullet train project, and other investment opportunities.
On his two-day visit to attend the Quad summit in Tokyo, Prime Minister Narendra Modi said that India’s speed and scale combined with the ease of doing business, government incentives, important reforms, and revolutionary plans are poised to create unmatched opportunities for Japan.
Rail Project
The Mumbai-Ahmedabad High-Speed Rail project is going to be a 508.17 KM long network across three districts in Maharashtra, and eight districts in Gujarat. The total cost of the project is INR 1.08 lakh crore.
Startup Ecosystem
He also said that funding from Japan is playing an important role in the fostering of a dynamic startup ecosystem in India. Recently, Japanese Venture Capital Group Softbank said that it has invested about US$ 14 billion over the past decade in India, making it the country’s largest foreign investor.
Bilateral Trade
In FY20, Japan’s bilateral trade with India totaled US$ 11.87 billion, according to the Ministry of External Affairs. Japan exported US$ 3.94 billion to India during this period, and its imports reached US$ 7.93 billion.
Textiles
The Prime Minister also met with the CEO of Uniqlo, a prominent Japanese apparel company, to discuss investment potential for textile production in India, under a Product Linked Incentive (PLI) scheme called the PM Mega Integrated Textile Regions and Apparel (PM MITRA).
Way Forward
PM Modi discussed with top executives from 34 Japanese companies from a variety of industries, including automobiles, electronics, semiconductors, steel, technology, trading, and finance, at the summit. He has mentioned that India and Japan are natural partners and an investment target of US$ 39 billion has been pegged for the next five years.
The PM also spoke about initiatives like National Infrastructure Pipeline (NIP), the PLI scheme, and the semiconductor policy at the summit. He added that India attracted a record US$ 84 billion in foreign investments in FY22, despite the global economic slowdown, which only shows India’s enormous economic potential.