In the modern era, the two countries have sustained their strong relationship as evidenced by several high-level meetings and economic ties. In 2014, this friendship was elevated to a Special Strategic and Global Partnership. During the same summit, former Prime Minister of Japan, Mr. Shinzō Abe pledged to realize public and private investments worth JPY 3.5 tn and doubling of the number of Japanese companies in India over the next five years. India’s total trade with Japan has increased from $10 bn to almost $18 bn, with exports valued at $5 bn and imports $13 bn in 2019.
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Canon is the market leader in DSLR camera devices and expects its revenues to reach $550 mn by 2020.
Japanese Prime Minister Shinzo Abe recently announced to invest $35 bn in India by 2020 for infrastructure development.
Diplomatic ties between India and Japan were established in 1952 with the signing of the Peace Treaty post World War II.
The two countries have several institutional dialogue mechanisms, including a 2+2 Dialogue at the Foreign and Defence Secretaries level, which are held regularly, at senior official and functional levels to exchange views on bilateral issues as well as regional and international cooperation.
In 2016, Japan announced its Country Assistance Policy providing Official Development Assistance (ODA) to build India’s critical infrastructure, and to address social and environmental issues caused by rapid growth.
In a special gesture, India announced “visa on arrival” scheme for all Japanese travellers, including for business purposes, from March 1, 2016.
A Comprehensive Economic Partnership was concluded between India and Japan in 2011 to accelerate economic and commercial relations between the two countries.
Prime Minister Shri Narendra Modi’s visit, for the 13th Annual Summit, to Japan on 28-29 October 2018 provided further impetus to bilateral ties. MOC on Healthcare and Wellness, Postal services, Environmental cooperation, and Food Processing Sector were among the 32 MoUs/Agreements signed during the Annual Summit.
An “India-Japan Digital Partnership” (I-JDP) was launched during the visit of Prime Minister Shri Narendra Modi to Japan in October 2018, furthering existing areas of cooperation as well as new initiatives within the scope of cooperation in S&T/ICT, focusing more on “Digital ICT Technologies”. This also incorporates setting up “Start-up Hub” between India and Japan.
PM led cabinet has approved for the signing of a memorandum of understanding (MoU) between textiles committee, India, and M/s Nissenken Quality Evaluation Centre, Japan, for improving quality and testing of Indian textiles and clothing for the Japanese market and facilitate Indian exports to meet the requirements of Japanese importers.
A Reciprocal Provision of Supplies and Services was signed between the Armed Forces of India and the Self-Defense Forces of Japan to establish the enabling framework of the activities under the agreement. The activities include the reciprocal provision of supplies and services, and bilateral training activities, United Nations Peacekeeping Operations, Humanitarian International Relief and other mutually agreed activities.
The Government of India and Government of Japan signed a Memorandum of Cooperation in January 2021 on a Basic Framework for Partnership for Proper Operation of the System Pertaining to "Specified Skilled Worker".
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Japan is the 5th largest investor in the Indian economy with cumulative FDI inflows of $35.98 bn during April 2000 and June 2021, contributing nearly 6.58% to India’s total FDI inflows during the same period.
The imports to India from Japan stood at $9.5 bn and exports from India to Japan stood at $2.9 bn, in 2020-21 (Apr – Feb), making Japan India’s 12th largest trade partner.
India’s imports from Japan showed a growth of almost 100% in a span of 12 years, reaching $12.4 bn in 2019-20 from $6.3 bn in 2007-08. Key imports from Japan include nuclear reactors, electrical machinery, iron & steel, and organic chemicals.
India’s exports showed a growth of 26.2% in a span of 12 years, reaching $4.86 bn in 2018-19 from $3.85 bn in 2007-08. Key exports to Japan include mineral fuels and mineral oils, organic chemicals, and natural or cultured pearls
India’s exports to Japan showed a growth of 16.8% in a span of 12 years, reaching $4.5 bn in 2019-20 from $3.85 bn in 2007-08. Key exports to Japan include mineral fuels & mineral oils, organic chemicals, fish & other aquatic invertebrates, and natural or cultured pearls.
India and Japan have had strong cultural ties for centuries due to the spread of Buddhism through East Asia; Japanese Buddhism continues to play a major role in Japanese society resulting in a strong shared identity between Indian and Japanese people.
Initial cultural relations between India and Japan post World War II were initiated in 1949 by the Indian Prime Minister Jawaharlal Nehru, who donated an Indian elephant to the Ueno Zoo in Tokyo.
The 1952 Peace Treaty between India and Japan was followed by a Cultural Agreement signed in 1956 between the two countries.
The Cultural Agreement established a system of cultural exchange between Japan and India through scientific, artistic, and educational endeavours; the agreement also created two Indian-Japanese Mixed Commissions, which govern overall cultural exchange policy.
More recent examples of cultural exchange between both countries include the creation of The Vivekananda Cultural Centre in Tokyo in September 2009 and the series of events organized by the Embassy and Consulate General, centered around the 3rd International Day of Yoga in June 2017.
Japan and India have forged Asia’s fastest growing relationship which is not only limited to trade but also expands to cross-cultural exchange, with over 9,000+ Japanese Nationals residing in India (as of October, 2018) and over 30,000+ Indian nationals residing in Japan (as of June, 2019).
Japanese Mitsui & Co announced will invest INR 30 crore in Punjab Renewable Energy Systems, a biomass supply-chain management company in India. The investment will be aimed at the expansion of the bio-energy business.
JetSynthesys has partnered with Japanese gaming firm Square Enix to develop new gaming titles in India.
They will launch their first game LudoZenith, a reimagined version of the Ludo board game, in India. They plan to launch it in other markets at a later date.
Daicel Corporation, headquartered in Japan, will be setting up an airbag inflator manufacturing plant in CapitaLand’s industrial township OneHub Chennai. It will be Daicel Corporation’s first airbag inflator manufacturing plant in India with a planned investment of about INR 230 crore in phase 1.
Orix Corporation, a Japan-based financial services group has signed an agreement with renewable energy project developer Greenko Energy Holdings, to acquire approximately 20% of its shares, at a total value of around $980 mn (around INR 72.07 bn). As part of the agreement, the company will also add 873 MW of its wind energy portfolio in India into Greenko’s portfolio in exchange for the shares.
Uniqlo, the Japanese global apparel retailer, launched its online 'Shop from Home' service and opened a new physical store in Noida, NCR.
It will be building new campuses in neighbouring Navi Mumbai, Chennai and Noida, and also augmenting capacities at its existing facilities in the financial capital and Bengaluru.
MUFG Bank has set up a system development and operations wing in India, with plans to develop it into a unit that supports the bank’s business across the Asian and Oceanian regions and elsewhere. With a capital of $4 mn, MUFG Bank holds a 99.9% stake, while its system development arm Mitsubishi UFJ Information Technology Ltd. holds the remainder.
The Series A funding and the CARB-X award will enable Bugworks to take its drugs to clinical trials, and find new ways to fight the global threat of drug resistance.
In December 2014, Masayoshi Son, founder of Japanese internet giant SoftBank Group said that his group would invest $10 bn in the Indian market by 2024. However, within five years, since Son made that remark, SoftBank has already achieved the $8 bn mark and is likely to surpass the committed amount much before the targeted year.
Nissan is eyeing on Technopark in Thiruvananthapuram, Kerala to set up its R&D facility to promote innovation. The venture is expected to create about 500 high-end jobs in its first phase.
Suzuki Motor Corp is planning to set-up 17 automobile ancillary plants in Bhagapura near their Hansalpur plant in Gujarat, with an expected investment inflow of $131 mn.
Kobelco Construction Equipment Co. starts expanding the manufacturing capacity at its facility in Sri City in Andhra Pradesh, with a planned investment of around $11.5 mn.
Japan's largest egg producer, Ise Foods signs MoU with the Ministry of Food Processing Industries, India to offer support in poultry, egg production and the upcoming Ise-Suzuki Mega Project in Telangana with an investment commitment of $34 mn.
Japan’s Sumitomo Corp and Indian auto-component manufacturer Krishna Group announces 50:50 JV in Indian real-estate market to set up Krisumi City Project in Gurugram in Haryana, with a planned investment of $2 bn.
Panasonic India sets up their maiden refrigerator manufacturing factory in Haryana with an investment of $18 mn.
Japanese entertainment company Sega Sammy is partnering with Gurugram-based GHV Accelerator to invest a minimum seed fund of $1,00,000 each in 10 startups.
Japanese MNC Toray plans to set up their unit to manufacture technical textiles in Sri City in Andhra Pradesh, with expected investment inflow of $157 mn.
Rubique, a Mumbai-based online marketplace for financial products, has raised an undisclosed amount in a funding round led by Japan's Recruit Group and Russian venture capital firm Emery Capital.
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India and Japan are ancient civilizations and vibrant democracies. Japan needs opportunities where it can deploy its hard-earned knowledge and technology. With the strength of our friendship and mutual trust, I invite more and more Japanese people and companies to come, live and work in India.
I would like to state that the India Japan partnership is special, strategic and global. India can become the factory of the world if both countries combine their efforts. We are committed to the policy of Make in India.
Japan and India are getting closer and closer. It is not just economic engagement, it is people to people exchange that is happening. Prime Minister Abe has a special interest in strengthening our bilateral relationship.
The World's Most Innovative Investment Promotion Agency Award 2021 awarded by OCO Global
United Nations Conference on Trade and Development (UNCTAD) Investment Promotion Award 2020 for best practices in COVID response
Best Investment Project Award five years in a row - 2016 to 2020 at the Annual Investment Meeting (AIM) organized by the Ministry of Economy, UAE.
Great Place to Work Certification by GPTW Survey 2019
The UNCTAD Award 2018 for promoting investment in sustainable development
Great Place to Work Certification by GPTW Survey 2018
Investment Award 2016 from the Indian Ocean Rim Association (IORA)
United Nations Conference on Trade and Development (UNCTAD) Investment Promotion Award 2016 for excellence in partnering for investment promotion