Japanese FDI in India Surpasses ₹2.7 Lakh Crore; Corporate Footprint Hits 1,400 Firms

Japanese Foreign Direct Investment (FDI) in India has crossed ₹2.7 lakh crore, with nearly 1,400 Japanese companies now operating in the country, according to Japan External Trade Organization (JETRO) Executive Vice President Akiko Okumura. 

Japanese firms are present across sectors such as automobiles, electronics, engineering and industrial machinery. The number of companies has grown gradually over the years, showing sustained business links between the 2 economies. 

Backing for Transport Infrastructure 

Japan has been involved in several large transport and logistics projects in India. Through the Japan International Cooperation Agency (JICA), financial and technical support has been extended to metro rail systems, the high-speed rail project and dedicated freight corridors. 

These projects form part of long-term cooperation in urban transport and industrial connectivity. 

Skill Development Programmes 

Apart from project funding, Japan has also supported workforce training. Around 24,000 young Indians have been trained over the past 7 years through programmes based on Japanese manufacturing methods. 

The training has focused on shop-floor processes, productivity practices and quality standards. 

Cooperation Moves to New Sectors 

As per news reports, the economic partnership is shifting towards technology-led areas. A joint action plan prepared by JETRO, the Confederation of Indian Industry and the Japan Chamber of Commerce and Industry in India lists sectors such as artificial intelligence, semiconductors, solar energy and battery technology. 

India’s base in information technology, engineering and research is to work alongside Japan’s manufacturing capabilities. 

Agreements Signed Last Year 

More than 170 Memoranda of Understanding (MoUs) were signed during Prime Minister Narendra Modi’s visit to Japan in August last year. The agreements covered areas including semiconductors, artificial intelligence, hydrogen, healthcare, and startups. 

The focus is expected to move towards implementing projects under these agreements. 

Read More: India Draws $51 Billion FDI in 6 Months as Manufacturing, Startups Gain Ground! 

Conclusion 

The number of Japanese companies in India has risen to around 1,400, with total FDI crossing ₹2.7 lakh crore. Cooperation between the 2 countries now covers both traditional industries and emerging sectors. 

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