Japan’s Vision 2025 initiative is a key driver in deepening bilateral ties, with an ambitious target of 5 trillion yen in investment by 2027. In an exclusive interview, Takashi Suzuki, Chief Director General of the Japan External Trade Organization (JETRO) New Delhi, discussed the evolving landscape of Japan-India relations, the successes it has already delivered, and the opportunities ahead.
“The Vision 2025 initiative, primarily a diplomatic effort, has certainly influenced the broader bilateral relationship,” said Suzuki, emphasizing how the framework is steering both economic and industrial cooperation between the two nations.
Diversification of investment, post-COVID
Historically, Japan’s investments in India have been dominated by the automotive sector, with Suzuki Motor Corporation leading the way. However, Japanese investment has significantly diversified, especially in the wake of the COVID-19 pandemic.
“Historically, the automotive sector, particularly Suzuki Motor Corporation, has been a major driver of Japanese investment. However, in recent years, we’ve witnessed diversification into sectors like IT and electronics. Companies like Rakuten and Fujitsu have established operations in India, particularly focusing on software development and R&D,” Suzuki noted.
This diversification marks a major shift, as Japan increasingly looks to India not just as a manufacturing base but as a vital hub for technology and innovation. Moreover, Japan’s expanding presence in sectors like IT and electronics highlights India’s growing role in the global tech ecosystem.
Ever-deepening cooperation
Industrial cooperation between Japan and India is also deepening, with initiatives like the India-Japan Industrial Competitiveness Partnership central to fostering growth in manufacturing, innovation, and skill development. The partnership is expanding into high-tech industries, including electronics and semiconductors.
Industrial cooperation between Japan and India is also deepening, with initiatives like the India-Japan Industrial Competitiveness Partnership central to fostering growth in manufacturing, innovation, and skill development.
“The electronics industry has been eyeing India for some time. While large-scale manufacturing hasn’t taken off yet, companies are establishing sales offices and service centers,” Suzuki said. He also noted the semiconductor industry’s potential, especially with the Indian government’s recent initiatives.
While partnerships with large Indian conglomerates are common, Suzuki pointed out that Japanese companies are increasingly recognizing the value of collaborating with mid-sized firms. “These partnerships can provide access to local markets, regulatory expertise, and specialized knowledge,” he explained, underscoring the importance of local insight in navigating the Indian market. Furthermore, this reflects Japan’s growing strategic flexibility in tailoring its partnerships to the nuances of the Indian market.
The people-to-people exchange imperative
Despite strong momentum in economic and industrial cooperation, Suzuki highlighted a key area where growth is still needed: people-to-people exchanges. “The current level of people-to-people exchange between Japan and India is significantly lower compared to Japan-China,” he said. “This imbalance hinders deeper cultural understanding and business collaboration.”
To address this gap, he advocates for initiatives like student exchange programs and talent recruitment, which can build stronger cultural ties and enhance long-term business partnerships. “By fostering stronger people-to-people ties, we can unlock the full potential of the Japan-India partnership,” Suzuki concluded.
By fostering stronger people-to-people ties, we can unlock the full potential of the Japan-India partnership.
Takashi Suzuki, Chief Director General of the Japan External Trade Organization office in New Delhi
The robust road to 5-trillion yen
Japan’s commitment to India is clear, with a bold target of 5 trillion yen in investment by 2027. However, realizing this goal will require overcoming regulatory challenges, deepening industrial collaboration, and strengthening people-to-people exchanges. This evolving partnership, marked by strong investments, industrial collaboration, and a growing cultural exchange, holds immense promise for the future—one that will benefit both nations and contribute to the global economy.
