New Delhi, April 3: Japan’s Ministry of Foreign Affairs has launched the Japan-India Economic Affairs Division. This initiative aims to assist local companies in attracting Japanese investment in India.
This move is part of Japan’s efforts to strengthen bilateral relations between the two nations.
In a statement, the Japanese government noted, “By establishing the Japan-India Economic Affairs Division, the Ministry of Foreign Affairs will enhance the expansion and investment of Japanese companies in India, deepening our economic partnership.”
The statement further emphasized, “Given India’s high economic growth rate, the importance of economic cooperation in Japan-India relations is increasing daily.”
This new initiative is expected to promote collaboration in high-growth sectors such as artificial intelligence (AI), startups, and critical minerals, aligning with the broader strategic priorities of both countries.
This step reflects India’s growing significance as a key economic and strategic partner amid changing global supply chains and geopolitical dynamics.
It also complements the goal set during the 2025 bilateral summit to increase private sector investment in India to 10 trillion yen (approximately $62.6 billion) by 2035.
Since 2000, Japan’s total foreign direct investment (FDI) in India has reached approximately $43.2 billion, primarily concentrated in sectors like automobiles, electronics, telecommunications, chemicals, and financial services.
Surveys indicate that Japanese manufacturers view India as a promising growth market. However, many remain cautious due to unfamiliarity with the country’s varying regulations across states.
Japanese FDI in India is on the rise, reaching a total of $3.1 billion in 2023-24. The capital has mainly flowed into the automobile, electrical equipment, telecommunications, chemicals, financial services, and pharmaceuticals sectors.
Dedicated Japanese industrial townships (JIT) are operational in Neemrana and Sri City, housing over 100 Japanese companies.
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