NEW DELHI: India and Japan’s economic partnership has entered a new era. More than 170 MoUs signed in just two years, unlocking USD 13 billion (₹1,14,608 crore) in investments across critical sectors including steel, automobiles, semiconductors, renewable energy, real estate, and aerospace.
Japan Inc. is backing India’s long-term growth.
Nippon Steel has announced a ₹56,000 crore integrated steel plant in Andhra Pradesh, while Suzuki Motor is setting up a ₹35,000 crore facility in Gujarat.
Toyota Kirloskar has committed ₹20,000 crore for a new plant in Maharashtra, alongside significant expansions by Sumitomo Realty, JFE Steel, and Osaka Gas.
These mega-projects are drawing Indian small and medium enterprises (SMEs) into global supply chains.
Semiconductor ventures with Tata Electronics, IT linkages through Fujitsu’s 9,000 new Indian recruits, and Tier-2/3 supplier integration by Toyota and Suzuki are ensuring that Indian SMEs gain access to world-class practices, technology, and export markets.
Rural Economy Benefits
The cooperation is also reaching farmers. Sojitz Corporation and Indian Oil are investing $395 million in 30 biogas plants, while Suzuki, in collaboration with NDDB, is rolling out a ₹230 crore cow-dung-to-CNG project in Gujarat.
These initiatives promise to raise farmer incomes, create rural jobs, and accelerate India’s clean energy transition.
The India–Japan partnership aligns with the “Make in India, Make for the World” vision.
Nippon Steel’s output will target global auto and energy markets, Toyota and Suzuki’s hybrid and EV models will ship to Africa and Southeast Asia, while Fujifilm’s semiconductor collaborations will link India to the global chip supply chain.
Perhaps the most transformative element is human resource development. The India–Japan Talent Bridge program aims to enable 500,000 student and professional exchanges in five years, spanning semiconductors, AI, robotics, and clean energy.
With IITs, IISc, BITS Pilani, and Delhi University onboard, and Japanese firms like Nidec, Musashi Seimitsu, and Money Forward hiring Indian engineers, this initiative promises to equip India’s youth with global exposure and advanced skills.
The partnership is also touching India’s Northeast, with Assam signing an MoU with ASEAN Holdings for infrastructure and agro-industrial projects, aligned with Japan’s Act East Policy.
Globally, India and Japan are coordinating on mineral security, semiconductor supply chain resilience, and export markets in Africa and the Middle East.
