Prime Minister Narendra Modi on Friday praised the strength of the India–Japan trade relationship and said fresh efforts could help both countries broaden their trade basket, achieve greater balance, and explore new avenues of cooperation.
In an interview with ‘The Yomiuri Shimbun’, the Prime Minister urged both nations to ‘aim bigger and remain ambitious’.
“The synergies across governments, businesses and people can create scale and speed in our economic partnership. As the world’s leading economies, we have been contributing to each other’s growth, competitiveness and dynamism,” PM Modi stated.
Japan, he observed, has long been a trusted partner in India’s infrastructure growth and remains a major source of foreign direct investment, particularly in automobiles, electronics, telecom, chemicals, finance and pharmaceuticals.
Around 1,500 Japanese firms now operate in India, while more than 400 Indian companies have established themselves in Japan.
“Clearly, this is only the beginning — the real potential is much higher,” he remarked.
The Prime Minister further asserted, “We maintain important trade relations, but it has not yet reached the levels envisaged under our CEPA (Comprehensive Economic Partnership Agreement). The 20th century saw Japan emerge as a major partner in India’s infrastructure development. I am confident that the 21st century will see Japan as a major partner in India’s innovation, manufacturing, and global value chains.”
Semiconductor Cooperation as a Key Pillar
On semiconductors, the Prime Minister highlighted India’s rapidly evolving ecosystem.
“We have put in place a comprehensive regulatory and policy framework, backed by incentives, to build a strong semiconductor and display ecosystem. Already, six semiconductor units are taking root in India, with four more on the way. By the end of this very year, ‘Made in India’ chips will be in the market, a clear demonstration of India’s design and manufacturing capabilities,” he noted.
PM Modi underlined the potential role of Japanese firms in this sector, stating that combining India’s scale with Japan’s advanced technologies could secure supply chains and support both nations’ technological ambitions.
“I see semiconductor cooperation emerging as a major pillar of the India–Japan partnership. After all, in this digital century, chips are not just about computers, they are about competitiveness, credibility and confidence in the future,” he stressed.
The Prime Minister also pointed to Japanese companies using India as a base for exports to Africa and other markets, saying reforms had made manufacturing easier than ever.
“We have removed compliance burdens, rolled out incentives and ensured a large skilled workforce for companies to set base in India. Many global companies, including those from Japan, are setting up their production in India not only to cater to our domestic market, but also for the world,” he noted.
Citing a recent example, PM Modi welcomed Suzuki Motor Corporation’s decision to invest Rs 70,000 crore in India over the next five to six years to expand production and launch new models.
“Just a couple of days back, I was at the Suzuki plant in India where we flagged off electric vehicles to be exported to a hundred countries, including Japan,” he said.
Also Read: Fumio Kishida A Strong Advocate Of India–Japan Ties, Says PM Modi
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