India and Japan seek to double Japanese corporate presence and boost trade

During a high-profile visit to Japan, Indian Commerce and Industry Minister Piyush Goyal has called for a significant expansion of bilateral economic ties, aiming to double the number of Japanese companies operating in India to approximately 3,000. The initiative focuses on integrating into global supply chains through high-technology and next-generation industries, specifically targeting semiconductors, steel, and artificial intelligence.

Key economic objectives include reaching a bilateral trade target of USD 50 billion by 2030. Industry body ASSOCHAM noted that while merchandise trade has grown significantly, there is substantial room for India to expand its exports in high-value sectors such as pharmaceuticals, electronics, and machinery. To support this, there are calls to upgrade the existing India-Japan Comprehensive Economic Partnership Agreement to address non-tariff barriers.

To bolster the innovation ecosystem, Goyal proposed the creation of a ‘Japan-India Deeptech Capital Corridor’ to provide early-stage funding for startups. He also suggested a pitching series modeled after ‘Shark Tank’ to facilitate direct interaction between Indian entrepreneurs and Japanese investors. Progress toward a previous USD 67 billion investment target is reportedly ahead of schedule, with over USD 10 billion already committed.