TOKYO: Commerce and Industry Minister Piyush Goyal is set to intensify India’s economic engagement with Japan, with a focus on expanding trade, attracting investment and developing cooperation in emerging technology sectors.
Goyal will lead a 200 member industry delegation during the visit, which is aimed at strengthening India’s partnership with Japan in areas ranging from traditional manufacturing to next-generation industries.
The minister is expected to hold discussions covering semiconductors, artificial intelligence and startups. Meetings with foreign institutional investors are also planned as New Delhi seeks to encourage greater Japanese participation in India’s growing economy.
Technology and investment at the centre
Japan has emerged as an important investor in India’s financial services sector in recent years. Japanese financial institutions have expanded their presence through major investments, including Mitsubishi UFJ Financial Group’s investment in Shriram Finance and Mizuho’s acquisition of a majority stake in Avendus.
The latest engagement is expected to build on these investments while opening opportunities in high-technology manufacturing and other strategic industries.
India and Japan are also exploring greater cooperation in sectors such as lithium-ion batteries as both countries seek to strengthen supply chains and reduce dependence on China for critical technologies and industrial components.
Focus on manufacturing cooperation
The Indian delegation will also seek to deepen established economic links in industries such as automobiles and steel.
An official statement said the visit reflects the ambitions of both countries to advance their special strategic and global partnership at a time when New Delhi and Tokyo are seeking to significantly expand commercial and investment relations.
Japan was India’s fifth-largest source of foreign direct investment globally last year, although recent major transactions are expected to strengthen its position as an investor in the Indian market.
Trade agreement review on agenda
The two sides are also expected to discuss India’s trade agreement with Japan during ministerial-level bilateral meetings.
India’s trade with Japan stood at around USD 122 billion last year, with Indian exports estimated at USD 44 billion. New Delhi continues to face a trade deficit of more than USD 33 billion with Japan.
The Indian government has been seeking a review of the existing trade framework to make bilateral commerce more balanced and create greater opportunities for Indian exporters.
The upcoming discussions are therefore expected to cover both immediate trade concerns and longer-term cooperation in technology, manufacturing, investment and resilient supply chains.