India-Japan Ties Strengthen as Goyal Invites Investments
In a significant move to bolster relations between India and Japan, Union Minister for Commerce and Industry, Shri Piyush Goyal, has urged Japanese businesses to enhance their investments and partnerships in India. Speaking at a dinner hosted by the Uttar Pradesh government for a Japanese delegation, Goyal emphasized the strategic importance of the India-Japan partnership, especially in the context of shared goals for peace and prosperity in the Indo-Pacific region.
Shri Goyal addressed the gathering in New Delhi, noting that the presence of the delegation from Yamanashi Prefecture signals a deepening bilateral relationship, extending into various Indian states and regions. He highlighted the complementary strengths of both nations in key sectors such as manufacturing, agriculture, technology, infrastructure, and the green economy.
During his address, Goyal acknowledged the ambitious vision of Uttar Pradesh under Chief Minister Yogi Adityanath, which aims to transform the state into a USD 1 trillion economy. He pointed out that Uttar Pradesh’s large population, improving connectivity, and skilled workforce create an ideal environment for Japanese technological investment, benefiting both India’s youthful labor force and Japan’s expertise.
Referencing the recent 16th India-Japan Annual Summit, Goyal highlighted Japan’s commitment to invest 10 trillion yen in India over the next decade. This investment is expected to span critical fields such as artificial intelligence, semiconductors, and next-generation mobility, playing a pivotal role in the future economic landscape of both countries.
The tangible benefits of the India-Japan partnership are already visible with ongoing projects, including the Mumbai-Ahmedabad High-Speed Rail and various Japanese-supported metro systems in several major cities. Currently, over 1,400 Japanese companies operate in India, contributing to a bilateral trade volume of approximately USD 27.5 billion for the fiscal year 2025-26. This collaboration has positioned Japan as India’s fifth-largest source of foreign direct investment, indicating a solid foundation for future economic ties.
Drawing parallels with the Japanese philosophy of ‘Kaizen’, Goyal illustrated India’s reform journey as one of continuous improvement. He called attention to various reforms aiming to enhance the ease of doing business in India, including advancements in infrastructure and digital public services that facilitate investment growth.
Uttar Pradesh, being India’s third-largest state economy, is home to over 9 million MSMEs and plays a crucial role in the national export landscape. The state has already welcomed enterprises such as Escorts Kubota and Seiko Advance into its manufacturing ecosystem.
Furthermore, Goyal pointed out critical infrastructures like the Jewar International Airport, the Yamuna Expressway, and the JICA-supported Western Dedicated Freight Corridor. These initiatives, along with 27 industrial clusters focused on sectors such as defence and electronics, firmly position Uttar Pradesh as an attractive destination for Japanese investments.
Looking ahead, Goyal announced his upcoming trip to Japan from August 24 to 27, 2026, where he aims to further these discussions at the highest levels of both government and industry. He emphasized the importance of civilizational ties between India and Japan, rooted in shared history and cultural links traced back to Buddhism. Goyal concluded by inviting Japanese businesses to view India, particularly Uttar Pradesh, as a key location for innovation and growth in the Indo-Pacific region.
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