India-Japan bilateral trade stood at $27.5 bn in FY 2025-26
Commerce and Industry Shri Piyush Goyal has invited Japanese businesses to deepen their investments and partnerships in India, pointing out the growing depth and strategic importance of bilateral relations between their two countries.
Addressing a dinner hosted by the Government of Uttar Pradesh for a Japanese delegation, he noted that India and Japan share a close and enduring partnership rooted in common aspirations for peace, progress and prosperity in the Indo-Pacific.
Uttar Pradesh Chief Minister Yogi Adaityanath attended the dinner New Delhi on 18 Aug held for a delegation from Yamanashi Prefecture, reflecting the growing reach of the bilateral partnership into India’s States and regions.
Goyal said that the seven streams of national transformation—manufacturing, agriculture, technology, infrastructure, energy and defence, green and blue economy, and India’s civilisational soft power—represent areas where the strengths of India and Japan complement each other.
The partnership goes beyond economic growth and reflects a shared commitment to becoming trusted partners in global progress, he added.
Highlighting Uttar Pradesh’s growing economic potential, Goyal pointed out that the State is working towards its ambition of becoming a US$1 trillion economy. He said Uttar Pradesh’s large and aspirational population, improving connectivity, industrial momentum and skilled workforce provide a strong platform for Japanese technology and expertise to complement India’s young workforce and expanding market.
Referring to the 16th India-Japan Annual Summit held in Delhi in July 2026, Goyal highlighted the strategic ambition underpinning the relationship, including Japan’s target of investing 10 trillion yen in India over the next decade. He said investments in areas such as artificial intelligence, semiconductors, critical minerals, batteries, energy and next-generation mobility would play an important role in shaping the future of both economies.
Goyal said the growing India-Japan partnership is already visible on the ground, citing the Mumbai-Ahmedabad High-Speed Rail project, Japanese-assisted metro systems in Delhi, Ahmedabad, Bengaluru and Chennai, and 11 Japanese industrial townships across eight States. He noted that more than 1,400 Japanese companies are today operating in India, with household names such as Suzuki, Toyota and Honda in mobility, Sony in electronics, and Hitachi and Mitsubishi in engineering.
Bilateral trade stood at around US$27.5 billion in FY 2025-26, while Japan is now India’s fifth-largest source of FDI, reflecting the strong foundation for further expansion of economic ties, noted the Minister.
Drawing on the Japanese philosophy of ‘Kaizen’, Goyal said India’s reform journey reflects a similar spirit of continuous improvement. He highlighted reforms in ease of doing business, infrastructure, digital public infrastructure, multimodal logistics and expanding Japanese language capabilities as part of India’s efforts to create a more enabling environment for investment and growth.
He informed the delegates that Uttar Pradesh, India’s third-largest State economy, has more than 9 million MSMEs and is the fifth-largest State exporter. He noted that enterprises such as Escorts Kubota and Seiko Advance are already contributing to the State’s manufacturing ecosystem.
He further highlighted the Jewar International Airport, Yamuna Expressway and the JICA-supported Western Dedicated Freight Corridor, along with 27 industrial clusters and ecosystems in sectors including defence, semiconductors and electronics, as key strengths that position Uttar Pradesh as a promising destination for deeper Japanese partnerships. Fiinews.com
