Japan Becomes India's Fifth-Largest Source of Foreign Investment: Piyush Goyal

Union Minister of Commerce and Industry, Shri Piyush Goyal, reiterated the robust strategic relationship between India and Japan, with a focus on deep-seated bonds in democracy, culture, and economic cooperation. Addressing the India-Japan Economy and Investment Forum, the Minister underlined Japan's pivotal contribution to India's economic development, with Foreign Direct Investment (FDI) from Japan exceeding $43 billion during 2000-2024, ranking it India's fifth-largest source of foreign investment.

Goyal emphasized the cultural affinity between the two countries, citing that the Seven Lucky Gods of Japan trace their roots to Indian traditions. He likened India and Japan's relationship to 'Sushi and spices', representing the blending of different yet complementary pieces in their relationship.

The Minister also emphasized the strong influence of the Comprehensive Economic Partnership Agreement (CEPA) signed in 2011, which has increased bilateral trade. With more than 1,400 Japanese firms doing business in India and 11 industrial townships in eight states having Japanese firms, the pact has been crucial in enhancing business relations. Key infrastructure projects like the Mumbai-Ahmedabad High-Speed Rail and Delhi, Ahmedabad, Bengaluru, and Chennai metro systems are also a testament to Japan's active engagement in India's growth. Exuding confidence over the Shinkansen bullet train project, he said its induction in the near future would be a milestone for India's transportation infrastructure.

Goyal underlined the role played by the 'Make in India' program inaugurated in 2014 headed by Prime Minister Narendra Modi. He stressed that the program has boosted India's manufacturing base with India and Japan collaboratively making globally competitive brands. Citing Maruti’s export of vehicles to Japan, he stressed Japan’s role in helping India achieve its goal of increasing the share of manufacturing in its GDP to 25%. He reiterated that trade, technology, tourism, and investment remain crucial pillars of India's international economic strategy, with Japan serving as a key partner.

He also discussed India's vision of promoting an environment-friendly-for-business scenario by improving ease of doing business on both the center and state fronts. The development of infrastructure by the government, public-private collaboration in innovation, and an improved R&D environment, with last year's budget announcements providing testimony to the same, indicate its strategic direction of economic growth. He emphasized that India graduates the world's largest number of STEM graduates, of which 43% are women, making the country's human capital stronger.

The Minister highlighted five drivers of India's economic growth: decisive leadership, demographic dividend, democracy, diversity, and demand from a 1.4 billion-strong population. He said that all these factors together determine India's growing economy, with big-scale investments existing alongside Micro, Small, and Medium Enterprises (MSMEs) to offer global solutions. Citing Prime Minister Narendra Modi, he added, "Today's India inspires confidence in the world", and the nation is becoming a leading investment destination as well as an emerging source of goods and services.

On quality norms, Goyal highlighted that Japan is a role model for excellence and India wants to emulate similar high standards in production. Indian manufacturers are being urged to implement 'Kaizen' (improvement constantly) and Lean Six Sigma methods to improve quality and efficiency, he said. Attempts are also being made to balance trade between the two countries by boosting Indian exports to achieve mutual gains.

Welcoming Japanese companies to join India's growth narrative, the Minister highlighted investment possibilities in green energy, renewable energy, high-tech manufacturing, semiconductors, electronics, and artificial intelligence. He again asserted that digital technologies would be a driving force for economic development, supporting India's commitment to innovation and sustainable development.

With a young and talented workforce, India is on its way to becoming a world manufacturing and technology hub, said Goyal. The strategic cooperation with Japan keeps enhancing economic relationships, paving the way for growth and prosperity in the future.