Union Commerce and Industry Minister Piyush Goyal called on Japanese companies and investors to deepen their presence in India, highlighting the country’s cost competitiveness, engineering talent, expanding trade agreements and growing manufacturing capabilities.
Goyal, who is on an official visit to Japan, made the pitch while chairing a roundtable with Japanese industry leaders from the capital goods, machinery and automotive sectors. He also held discussions with foreign institutional investors and financial sector representatives, focusing on India’s evolving investment landscape and opportunities for stronger India-Japan economic ties.
Addressing Japanese industry representatives, Goyal outlined three key areas for companies seeking to expand their operations in India – leveraging India’s cost competitiveness and free trade agreements, making greater use of Indian engineering talent and deepening localisation.
He urged Japanese companies to strengthen component supply chains in India and use the country as an export base for global markets. He also encouraged firms to establish research and development centres, global capability centres and engineering partnerships with Indian academic institutions.
“I have only three suggestions or asks as I invite you to leverage the cost competitiveness, our FTAs, and our engineering talent,” Goyal said.
The minister said India was ready to support companies through innovation funding and other policy measures, while Invest India would assist investors throughout their business journey.
Goyal also highlighted the target of attracting 10 trillion yen in Japanese investment into India over the coming years, saying the time had come for new factories and capacities to be established in India and for the country to become a manufacturing base “for the world”.
Citing Suzuki’s operations as an example, Goyal said the Japanese automaker exports from its Indian manufacturing facilities to more than 100 countries, demonstrating the potential of India as a global export hub.
He also pointed to India’s expanding network of free trade agreements, saying the country now has preferential market access to economies with a combined GDP of around USD 70 trillion, compared with about USD 10 trillion before 2014. According to the minister, nine FTAs signed over the past four years have added 38 developed and prosperous countries to India’s trade network.
During his visit, Goyal also participated in a breakfast roundtable with representatives of leading Foreign Institutional Investors and discussed India’s investment climate, progress in ease of doing business and opportunities across sectors.
He met Ryo Ohira, Managing Director and Head of East Asia at investment management firm Neuberger Berman, with discussions focusing on strengthening India-Japan investment linkages and financial and wealth management partnerships.
Goyal also participated in a fireside conversation with Nikkei Asia on the India-Japan Next Generation Economic Partnership. He highlighted opportunities in semiconductors, clean energy, digital technology, IT and infrastructure, and said Japan could further expand its presence by leveraging India’s large manufacturing base.
“Japan, which has been a strong partner in our growth story, now has the opportunity to further solidify its presence, benefit from the massive manufacturing base in India, and build at scale,” Goyal said.
The minister also met senior Japanese government and business representatives and said India and Japan would work to implement the understandings reached by their prime ministers at the Annual Summit in July.
Goyal described the India-Japan economic partnership as being anchored in trust, technology and shared prosperity, with resilient supply chains and greater co-innovation as key areas for future cooperation.
Highlighting India’s broader economic ambitions, Goyal said the country is currently valued at around USD 4 trillion and is targeting a USD 30 trillion economy by 2047, the centenary of Independence. On a purchasing power parity basis, India’s economy is already around USD 20 trillion, he said.
He linked the investment push with the Viksit Bharat 2047 vision, stressing that the goal of building a developed India would require the participation of businesses, workers, farmers and other sections of society alongside the government.
(With agency inputs)
