Prime Minister Narendra Modi on Friday recounted Japan’s importance in India’s growth journey, describing it as a “key development partner.” Modi made these remarks during his two-day visit to Japan, where he is scheduled to hold talks with Prime Minister Shigeru Ishiba and engage with leading business figures.
Speaking at the India-Japan Economic Forum in Tokyo, Modi praised the depth of collaboration between the two countries and called on Japanese companies to expand their investments in India. He urged them to not only manufacture in India but also use the country as a hub to export products worldwide.
“Japan has always been an important partner in India’s development journey from metros to manufacturing, from semiconductors to startups. Japanese companies have invested more than 40 billion dollars in India,” Modi said.
After concluding his visit to Japan, Modi will travel to China to attend the Shanghai Cooperation Organisation (SCO) Summit, where he will meet Chinese President Xi Jinping and Russian President Vladimir Putin on the sidelines.
Addressing the India-Japan Economic Forum in Tokyo. Strong business ties between our nations are a vital element of our friendship. https://t.co/OUSvy98eJo
— Narendra Modi (@narendramodi) August 29, 2025
India’s strong fundamentals and investor appeal
Modi spoke of his long-standing association with Japanese business leaders, recalling that he has known many of them since his time as Gujarat’s Chief Minister (2001–2014). He emphasized that investing in India was highly rewarding.
“Capital in India doesn’t just grow but it multiplies,” he remarked, pointing to India’s political stability, economic resilience, and reforms aimed at boosting transparency.
He noted that India is on course to become the world’s third-largest economy and that its markets are generating robust returns. Recent structural reforms, including a simplified tax regime, are also making India one of the most attractive investment destinations globally.
“A few weeks ago, our parliament also approved a new and simplified tax regime. Japanese companies invested more than $40 billion in India. India is the most promising destination. The world is not just watching India it is counting on India,” Modi added.
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India–Japan trade relations: A growing partnership
India and Japan share a strong economic and strategic partnership. Japan is one of India’s largest sources of foreign direct investment, contributing across sectors like infrastructure, technology, automobiles, and startups.
Bilateral trade between the two nations has also been rising steadily. In 2022–23, trade volumes crossed $21 billion, with India exporting goods such as iron ore, petroleum products, chemicals, and textiles to Japan, while importing machinery, vehicles, electrical equipment, and precision instruments.
The two countries are also working together on high-speed rail projects, renewable energy, digital technologies, and supply chain diversification, reflecting a shared vision for economic growth and regional stability.
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