New Delhi [India]: Prime Minister Narendra Modi on Wednesday expressed optimism about Japan’s expanding presence in India and its dedication to the ‘Make in India, Make for the World’ initiative.
The statement came after PM Modi met with a Japanese business delegation led by Tatsuo Yasunaga. The meeting emphasized the strong India-Japan Special Strategic and Global Partnership, focusing on economic collaboration and strengthening bilateral ties.
“Pleased to meet the Japanese business delegation led by Mr. Tatsuo Yasunaga today. Encouraged by their expansion plans in India and steadfast commitment to ‘Make in India, Make for the World’. Looking forward to deepening economic collaboration with Japan, our Special Strategic and Global Partner,” PM Modi posted on X.
India-Japan Economic Relations: A Growing Partnership
The commercial and business engagement between India and Japan dates back to 1972 when Panasonic established its first manufacturing facility in India. Companies like Suzuki and Denso followed in the early 1980s, strengthening Japan’s industrial footprint in India.
Today, the two nations share a ‘Special Strategic and Global Partnership,’ underscoring vast potential for commercial and economic cooperation. Japan’s increasing interest in India is driven by factors such as India’s large and growing market, skilled workforce, and expanding economic landscape.
India-Japan Comprehensive Economic Partnership Agreement (CEPA)
The historic India-Japan Comprehensive Economic Partnership Agreement (CEPA), implemented in August 2011, has further accelerated trade and investment between the two nations.
During Japanese Prime Minister Fumio Kishida’s visit to India in March 2022, both leaders committed to realizing JPY 5 trillion (approximately USD 35 billion) in public and private investment over five years to support mutually beneficial projects.
India-Japan Trade Figures: Room for Growth
Japan’s bilateral trade with India reached USD 22.85 billion in FY 2023-24. Key trade statistics include:
- Exports from Japan to India: USD 17.69 billion
- Imports from India to Japan: USD 5.15 billion
India currently ranks 18th in Japan’s total trade (1.4% share), while Japan ranks 17th in India’s total trade (2.1% share). These figures indicate significant potential for further economic collaboration.
As both nations continue to deepen their economic ties, Japan’s commitment to the ‘Make in India, Make for the World’ initiative is expected to drive mutual growth and strengthen India’s manufacturing and export capabilities.
