Union Minister of Commerce and Industry Piyush Goyal has emphasised that the India-Japan relationship encompasses both trade and investment dimensions, with the comprehensive strategic partnership expanding across critical infrastructure, trade baskets, and high-technology sectors such as semiconductors.
Trade and Investment Figures
Speaking at the Indo-Japan Strategic Dialogue hosted by NDTV, Goyal noted that bilateral engagement surged after the reset into a comprehensive strategic partnership. Momentum further increased following the 15th Japan-India Summit, where Japan committed to investing 100 trillion yen, approximately USD 65-70 billion, across various Indian sectors, infrastructure, and industry.
Japan's bilateral trade with India totalled USD 27.47 billion during FY 2025-26. Exports from Japan to India stood at USD 21.43 billion, while imports from India were USD 6.04 billion. India now ranks 14th in Japan's total trade with a 1.75 per cent share, while Japan ranks 10th in India's total trade with a 2.26 per cent share. India is 8th in Japan's total exports (2.61 per cent share), and Japan is 21st in India's total exports (1.37 per cent share). India ranks 22nd in Japan's total imports (0.98 per cent share), and Japan is 10th in India's total imports (2.76 per cent share).
Complementary Strengths in Trade
Addressing the trade dynamic, Goyal explained that the partnership relies on complementary strengths. India imports technology-driven products from Japan while exporting high-quality, precision-engineered materials, auto components, and electronic components. "What we sell to Japan are also value-added products. We are not selling raw materials or intermediates," Goyal stated.
India's primary exports to Japan include organic chemicals, vehicles (other than railways and trams), nuclear reactors, aluminium and articles thereof, and fish and other aquatic invertebrates. Primary imports from Japan are nuclear reactors, copper and articles thereof, electrical machinery and equipment, inorganic chemicals, and iron and steel.
Regional Development and Act East Policy
The partnership extends to regional development through India's Act East policy. Goyal described the Northeast region as a natural gateway for trade with ASEAN due to its geographical proximity and talented workforce. Joint efforts by India and Japan to promote industry and infrastructure in the Northeast align with the government's commitment to equitable development across all regions.
Semiconductor Mission and Human Capital
Goyal discussed the success of India's semiconductor mission, which now includes almost 12 major initiatives. Global companies recognise Indian talent, as Indians comprise nearly 20 per cent of design engineers in the semiconductor field. Japan is among the friendly nations keen to see India integrate into the global semiconductor supply chain, supported by an existing USD 100 billion domestic semiconductor market.
The Minister noted that Japan's historical economic engagement with India focused largely on investments. He cited the transformative impact of Maruti Suzuki, which entered the Indian market nearly 40 years ago and introduced modern, affordable, technology-driven automobiles, positioning India to become a global power in the automotive sector. "Just reading the figures for last month, Maruti Suzuki has 147,000 car share out of 400,000 passenger vehicles sold in India in the month of May," Goyal added.
Services Sector and Skill Development
The dialogue also touched upon human capital and the services sector, particularly Japan's requirement for highly skilled caregivers. Goyal emphasised the necessity of language and cultural training to secure these high-paying opportunities. He shared that his own skill development centre in Mumbai runs classes on Japanese language and culture to help students secure employment in Japan.
"Japan-India relation has been a relationship of trust, a very comprehensive relationship where we have over the years, ever since the time of Prime Minister Shinzo Abe-san, Prime Minister Modi has been building and nurturing this relationship," Goyal said.
