'Japan is India's fifth-largest FDI source, investing $43 billion since 2000', says Piyush Goyal

Union Minister of Commerce and Industry, Piyush Goyal, while speaking at the India-Japan Economy and Investment Forum, said that India and Japan share a globally recognized strategic partnership rooted in brotherhood, democracy, culture, and economic cooperation.

Goyal highlighted that the Seven Lucky Gods of Japan have origins in Indian tradition, underscoring the deep cultural ties between the two nations. He noted that the relationship between India and Japan reflected Sushi and spices, a fusion of distinct yet complementary elements, contributing to an extraordinary partnership.

"Japan has been a key ally in India's economic growth, with Foreign Direct Investment (FDI) from Japan exceeding $43 billion between 2000 and 2024, making it India's fifth-largest source of foreign investment, Goyal added.

Notably, the Comprehensive Economic Partnership Agreement (CEPA). which was signed in 2011, has significantly strengthened bilateral trade, with over 1,400 Japanese companies operating in India and 11 industrial townships across eight states hosting Japanese enterprises.

"Under the leadership of Prime Minister Narendra Modi, the ‘Make in India’ initiative launched in 2014 has provided a significant boost to India's manufacturing sector. He stated that India and Japan are collaborating to build globally competitive brands, citing the example of Maruti exporting vehicles to various countries, including Japan," Goyal said.

He reiterated the objective of increasing the share of manufacturing in India's GDP to 25%, with Japan playing a crucial role in achieving this target.

"The Minister cited the Prime Minister, emphasizing that trade, technology, tourism, and investment will remain key pillars of India's international economic strategy, with the partnership with Japan playing a crucial role in strengthening economic ties," he noted. 

"Japan serves as a benchmark for excellence and that India seeks to adopt similar high standards in manufacturing. He noted that Indian manufacturers are being encouraged to embrace 'Kaizen' (continuous improvement) and Lean Six Sigma principles to enhance quality and efficiency."

He furth added that the Indian government is making efforts to balance trade between India and Japan with a focus on increasing Indian exports to ensure reciprocal benefits.

Last December, it was reported that FDI in India experienced a sharp 43% year-on-year increase in the second quarter of FY25, reaching $13.6 billion, up from $9.52 billion in the same quarter last fiscal.

Notably, Singapore was emerged as the largest contributor, accounting for 50% of the total inflows during this period, according to DPIIT. Over the years, cumulative FDI inflows from Singapore have totalled $159.94 billion between April 2000 and March 2024.