August 6, 2020
The Forum discussed investment opportunities in electronics and information technology, textiles, automobiles, food processing, and pharmaceuticals
Japanese investment in India was reported at US$3.2 billion in 2019-20, marking the fourth largest FDI equity inflow for the economy during that period
Japan’s interest in India has been steadily rising owing to the nation’s vast and growing market and an increase in diverse capabilities across industries
India is planning to set up the 13th Japanese industrial township in Assam, a move aimed at promoting manufacturing and strengthening economic ties
India and Japan are looking to have trusted partners from authentic investors, the Minister of Commerce and Industry Shri Piyush Goyal said while addressing the 3rd Invest India Exclusive Investment Forum – Japan Edition on August 6. The Minister said that it is important that Japan and India expand trade and business relationships. Over the past five years, the India-Japan relationship has steadily gained strength with new and expanded collaborations covering agricultural trade, precision manufacturing, workforce skilling, STEM R&D, and innovation to cultural and people-to-people exchanges. This has led to an 85 per cent jump in bilateral trade over the past five financial years to touch nearly US$17 billion in 2019-20.
Japanese investment in India, meanwhile, was reported at US$3.2 billion in 2019-20, marking the fourth largest FDI equity inflow for that period. In 2018, there were over 1,400 Japanese companies registered in India – a 5 per cent y-o-y rise. On the other hand, the number of Indian firms in Japan has also risen, crossing 100. Addressing the forum Shri Goyal said that Japan is one of the most important and trusted trading partners for India, adding that economic relations between India and Japan have vast growth potential. Apart from commerce, in the area of science, technology, and innovation, the collaborations have been increasing significantly. India and Japan are also partners in skill development for the future.
Japan’s interest in India has been steadily rising due to a variety of reasons, including India’s large and growing market. With its large population and growing consumer base, India is the preferred destination for Japanese investments. Japan and India ties span across sectors, including automobiles, chemicals, consumer goods, food processing, and today’s digital world provides numerous opportunities. “The partnerships thus far have focused on technical cooperation, and we are now looking to Japan as a strategic and investment development partner,” Shri Goyal said. Both countries have now mutually agreed to take up issues related to boosting commerce with traders and investors on a cooperative basis.
At the forum, Hiroshi Kajiyama, Minister of Economy, Trade, and Industry (METI), Government of Japan, reiterated his country’s interest in furthering the bilateral relations. Meanwhile, Shigehiro Tanaka, Vice Minister, METI, made a presentation on the ‘India-Japan Industrial Competitiveness Partnership’ and the way forward. Mr. Nobuhiko Sasaki, Chairman, JETRO spoke about the Experience of Japanese companies operating in India. India is planning to set up the 13th Japanese industrial township in Assam, a move aimed at promoting manufacturing and strengthening economic ties between the two countries. The Government of India is also preparing a GIS-enabled database of industrial areas and clusters.