Global Outreach & Investments

Nikkei India-Japan Economy and Investment Forum, which was organized in New Delhi on February 21, 2025, was a high-profile event by Nikkei, Japan's largest media house, to drive bilateral growth and business opportunities between India and Japan.

Keynote Address by Union Minister Piyush Goyal

Union Commerce and Industry Minister Shri Piyush Goyal gave the keynote address, underlining the deep strategic cooperation between the two countries, which he spoke of as a special combination of "Sushi and Spices"—different but complementary.

• Trade Imbalance Issue: Minister Goyal raised an eyebrow at the increasing trade imbalance, which he said while Japanese exports to India keep increasing, Indian exports to Japan have been flat in the past 15 years.

• Request for Reciprocity: He emphatically asked Japanese businesses to create a "two-way bridge" with India, not a one-way road for exporting products.

He urged them to concentrate on producing goods and services in India for supply in Japan, which would enable balancing trade.

• Ending Unfair Practices: The Minister specifically mentioned the steel industry, mentioning that while Japan is eager to sell its steel in India, Indian steel cannot be sold in Japan—calling the practice a matter of concern.

 • Pillars of India's Growth: He stressed India's five pillars for economic growth: Decisive Leadership, Demographic Dividend, Democracy, Diversity, and Demand created by 1.4 billion people.

• Manufacturing & Quality: Goyal reaffirmed India's goal of enhancing the contribution of manufacturing to its GDP to 25% with the assistance of Japan. He emphasized India bringing in Japanese high-quality standards and inviting manufacturers to imbibe the 'Kaizen' (constant improvement) philosophy.

• Investment Attraction: The Minister emphasized Japan's position as a close ally, with FDI from Japan totaling over $43 billion from 2000 to 2024 (India's fifth-largest source), and called for increased engagement in areas such as green energy, semiconductors, electronics goods, and AI.

Views of the Embassy of Japan

H.E. Mr. Keiichi Ono, Japanese Ambassador to India, emphasized the strategic nature of the partnership.

• Enriching Trust: The Ambassador's declaration that "India is Japan and Japan is India, we both need each other" summarized the importance of a partnership founded on mutual values and trust.

 • Confidence in Investment: He highlighted rising Japanese interest in India, observing that rising Japanese investment in Indian manufacturing and production facilities would automatically drive up India's exports, leading to a trade relationship that benefited both sides.

• Quality & Cooperation: Ambassador Ono was upbeat about India's potential for increased export quality, assuring Japan's willingness to cooperate on skills, technology, and innovation to enhance India's manufacturing quality.

Core Themes and Discussions

The sessions in the forum were designed around pillars of strategic importance in the bilateral relationship, emphasizing India's increased economic stature and the strategic value of Japanese investment:

• India's Economic Potential: Debates often focused on India as the world's most populated nation with a youthful population (median age of 28), its expected emergence as one of the world's largest economies (overtaking Japan and Germany), and its appeal to Japanese capital, which has set a goal of JPY 5 trillion of public and private investment and financing.

• "Make in India" Initiative: The talks focused on taking Japanese manufacturing and technological capabilities to support the "Make in India" policy to increase domestic manufacturing. Minister Goyal's statement pertained explicitly to the necessity for it to also cater to the export market, including to Japan, in order to balance trade.

• Infrastructure Development: A special session considered the development of India's physical infrastructure, a traditional area of cooperation (referring to initiatives such as the Mumbai-Ahmedabad High-Speed Rail), and how Japanese experience and financing can play a role.

 • Consumer Market in India: Sessions discussed India's extensive and expanding consumer market and opportunities it has for Japanese businesses.

• Innovation & Startups: An interactive session on utilizing the startup ecosystems of the two nations for collaboration, especially in emerging and high-tech sectors.

• Investment in Strategic Sectors: Members of the Japan Bank for International Cooperation (JBIC) identified proactive support to Japanese businesses entering the Indian market in strategic sectors such as semiconductors and hydrogen under India's 'Self-Reliant India' (Atmanirbhar Bharat) policy. JBIC also referred to its involvement in creating high-tech zones such as the Dholera Special Investment Region.

 Future Outlook and Challenges

The forum solidified the robust trajectory of the India-Japan relationship, acknowledging that though opportunities are tremendous, sustained effort must be applied to address certain challenges:

 • Trade Imbalance: Referring to correcting the trade imbalance, whereby Japan has more exports to India, a focus was laid to induce more Indian exports to Japan (a fact emphasized considerably by Minister Goyal).

• Structural Reforms: Labor reforms, building Small and Medium Enterprises (SMEs), and promoting the use of clean energy were recognized as key to enabling India to utilize its full economic potential and demographic leverage.

 • People-to-People Ties: Though strategic and economic relationships are strong, the forum observed that people-to-people contacts and understanding need more attention and nurturing.

The summit, being one of Nikkei's earliest and large-scale initiatives in India, ended on a firm commitment from both sides to further enhance cooperation on technology, infrastructure, manufacturing, and investment to forge a resilient and sustainable economic future in the Indo-Pacific.